10.22.18
Kimberly-Clark’s sales of $4.6 billion in the third quarter of 2018 were down 2% compared to the year-ago period. Changes in foreign currency exchange rates reduced sales by 3%. Organic sales increased 1% year-on-year. Net selling prices and product mix each improved 1%, while volumes fell 1%. In North America, organic sales decreased 1% in consumer products and increased slightly in K-C Professional. Outside North America, organic sales rose 3% in developing and emerging markets and 1% in developed markets.
In the Personal Care segment, third quarter sales of $2.3 billion decreased 1%. Changes in currency rates reduced sales by 4% while the acquisition of the company's joint venture in India benefited sales by 1%. Volumes and product mix each improved 1%.
Sales in North America increased 2%. Volumes rose 3%, while the combined impact of changes in net selling prices and product mix reduced sales by 1%. Volumes were up high-single digits in the infant and child care mega category compared to a mid-single digit decline in the year-ago period. The growth reflects benefits from increased brand support, changes in the timing of promotion shipments, ongoing momentum on Pull-Ups training pants and innovations launched over the last 12 months. Volumes were off mid-single digits in adult care, including the impact of changes in the timing of promotion shipments, compared to a high-single digit increase in the base period.
Sales in developing and emerging markets decreased 4%. Currency rates were unfavorable by 10%, primarily in Latin America, while the acquisition of the company's joint venture in India benefited sales by 1%. Net selling prices and product mix each improved more than 2%. The higher net selling prices were driven by increases in Latin America, partially offset by decreases in China. Volumes were similar overall, including increases in Brazil, Eastern Europe and Vietnam, and declines in Argentina and China.
Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) decreased 3%, including a 1 point negative impact from changes in currency rates. Net selling prices fell 3%, while volumes and product mix each improved 1%.
In the Personal Care segment, third quarter sales of $2.3 billion decreased 1%. Changes in currency rates reduced sales by 4% while the acquisition of the company's joint venture in India benefited sales by 1%. Volumes and product mix each improved 1%.
Sales in North America increased 2%. Volumes rose 3%, while the combined impact of changes in net selling prices and product mix reduced sales by 1%. Volumes were up high-single digits in the infant and child care mega category compared to a mid-single digit decline in the year-ago period. The growth reflects benefits from increased brand support, changes in the timing of promotion shipments, ongoing momentum on Pull-Ups training pants and innovations launched over the last 12 months. Volumes were off mid-single digits in adult care, including the impact of changes in the timing of promotion shipments, compared to a high-single digit increase in the base period.
Sales in developing and emerging markets decreased 4%. Currency rates were unfavorable by 10%, primarily in Latin America, while the acquisition of the company's joint venture in India benefited sales by 1%. Net selling prices and product mix each improved more than 2%. The higher net selling prices were driven by increases in Latin America, partially offset by decreases in China. Volumes were similar overall, including increases in Brazil, Eastern Europe and Vietnam, and declines in Argentina and China.
Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) decreased 3%, including a 1 point negative impact from changes in currency rates. Net selling prices fell 3%, while volumes and product mix each improved 1%.
