10.21.15
Kimberly-Clark reported third quarter 2015 net sales of $4.7 billion, down 7% compared to the year-ago period, as changes in foreign currency exchange rates reduced sales 12%. Organic sales rose 5%, including a 10% increase in developing and emerging markets and a 7% improvement in personal care in North America.
In the Personal Care segment, third quarter sales of $2.4 billion fell 5%. Currency rates were unfavorable by 13%. Volumes increased more than 7% and product mix was favorable by 1%. Third quarter operating profit of $484 million was essentially even with the year-ago period. The comparison benefited from organic sales growth, cost savings and lower input costs, offset by unfavorable currency effects and increased marketing, research and general spending on a local currency basis.
Sales in North America increased 5%. Currency was unfavorable 2%. Volumes rose 10%, while net selling prices fell 3%, driven by increased promotion activity. Huggies diaper volumes rose low double-digits compared to a low double-digit decline last year and included benefits from innovation and increased promotion support. Adult care volumes were up double-digits, including strong growth on Poise and Depend absorbent products and introductory shipments of new Poise Impressa bladder supports. Huggies baby wipes volumes rose high-single digits, with benefits from innovation, and child care volumes were up mid-single digits.
Sales in developing and emerging markets decreased 11%, including a 25% negative impact from changes in currency rates. Volumes increased 8%, net selling prices improved 4% and product mix advanced 1. The volume growth included gains in China, Eastern Europe and most of Latin America, led by Argentina, Brazil and Colombia. The higher net selling prices were driven by increases in Eastern Europe and Latin America in response to weaker currency rates.
Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) decreased 15%, driven by unfavorable currency rates.
In the Personal Care segment, third quarter sales of $2.4 billion fell 5%. Currency rates were unfavorable by 13%. Volumes increased more than 7% and product mix was favorable by 1%. Third quarter operating profit of $484 million was essentially even with the year-ago period. The comparison benefited from organic sales growth, cost savings and lower input costs, offset by unfavorable currency effects and increased marketing, research and general spending on a local currency basis.
Sales in North America increased 5%. Currency was unfavorable 2%. Volumes rose 10%, while net selling prices fell 3%, driven by increased promotion activity. Huggies diaper volumes rose low double-digits compared to a low double-digit decline last year and included benefits from innovation and increased promotion support. Adult care volumes were up double-digits, including strong growth on Poise and Depend absorbent products and introductory shipments of new Poise Impressa bladder supports. Huggies baby wipes volumes rose high-single digits, with benefits from innovation, and child care volumes were up mid-single digits.
Sales in developing and emerging markets decreased 11%, including a 25% negative impact from changes in currency rates. Volumes increased 8%, net selling prices improved 4% and product mix advanced 1. The volume growth included gains in China, Eastern Europe and most of Latin America, led by Argentina, Brazil and Colombia. The higher net selling prices were driven by increases in Eastern Europe and Latin America in response to weaker currency rates.
Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) decreased 15%, driven by unfavorable currency rates.