10.22.19
Kimberly-Clark’s sales of $4.6 billion in the third quarter of 2019 increased more than 1% compared to the year-ago period. Changes in foreign currency exchange rates reduced sales by 2% and business exits in conjunction with the 2018 Global Restructuring Program reduced sales slightly. Organic sales increased 4%. Net selling prices rose 4% and product mix improved 1%, while volumes fell 1%. In North America, organic sales increased 4% in consumer products and 5% in K-C Professional. Outside North America, organic sales rose 5% in developing and emerging markets and 1% in developed markets.
In the Personal Care segment, third quarter sales of $2.3 billion increased 2%. Net selling prices increased 3%, volumes rose 1% and product mix improved 1%. Changes in currency rates reduced sales by 3%. Third quarter operating profit of $490 million increased 5%. The comparison benefited from organic sales growth and cost savings. Results were impacted by unfavorable currency effects, other manufacturing cost increases, higher advertising spending and increased selling, general and administrative costs.
Sales in North America increased 4%. Net selling prices increased 2% and product mix improved 1%, both driven by baby and child care. Volumes were up 1% overall. Volumes increased double-digits in adult care but were down mid-single digits in baby and child care compared to a mid-single digit increase in the year-ago period.
Sales in developing and emerging markets increased 3%. Net selling prices rose 6% and product mix improved 1%, while volumes were even year-on-year and currency rates were unfavorable by 5%. The higher net selling prices mostly occurred in Argentina, the Middle East/Eastern Europe/Africa and China. Volumes increased in Eastern Europe, ASEAN and South Africa, but fell in Latin America.
Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) decreased 3%, including a 6 point negative impact from changes in currency rates. Product mix improved 2% and volumes rose 1%.
In the Personal Care segment, third quarter sales of $2.3 billion increased 2%. Net selling prices increased 3%, volumes rose 1% and product mix improved 1%. Changes in currency rates reduced sales by 3%. Third quarter operating profit of $490 million increased 5%. The comparison benefited from organic sales growth and cost savings. Results were impacted by unfavorable currency effects, other manufacturing cost increases, higher advertising spending and increased selling, general and administrative costs.
Sales in North America increased 4%. Net selling prices increased 2% and product mix improved 1%, both driven by baby and child care. Volumes were up 1% overall. Volumes increased double-digits in adult care but were down mid-single digits in baby and child care compared to a mid-single digit increase in the year-ago period.
Sales in developing and emerging markets increased 3%. Net selling prices rose 6% and product mix improved 1%, while volumes were even year-on-year and currency rates were unfavorable by 5%. The higher net selling prices mostly occurred in Argentina, the Middle East/Eastern Europe/Africa and China. Volumes increased in Eastern Europe, ASEAN and South Africa, but fell in Latin America.
Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) decreased 3%, including a 6 point negative impact from changes in currency rates. Product mix improved 2% and volumes rose 1%.
