Kimberly-Clark Q4 Earnings Beat Estimates; Expects Inflation, Supply-Chain Disruption To Persist In 2022

Kimberly-Clark Corp KMB reported fourth-quarter FY21 sales growth of 3% year-on-year, to $4.97 billion, beating the analyst consensus of $4.90 billion.
Organic sales increased 3% as net selling prices rose 2% and product mix increased sales 1%. In North America, organic sales rose 2% in K-C Professional.
Sales from the personal care segment increased 12%, the consumer tissue segment fell 10%, and K-C Professional climbed 2%.
Adjusted EPS of $1.30 beat the analyst consensus of $1.25.
Gross profit fell by 14% Y/Y to $1.44 billion. Marketing, research, and general expenses decreased 9% Y/Y to $911 million.
Operating income declined 30% to $521 million, with an operating margin of 10.5%.
Cash provided by operations increased 19.7% to $1.06 billion. The company held $270 million in cash and equivalents as of December 31, 2021.
"While we expect inflation and supply-chain disruption to persist into 2022, we are committed to recovering margins to pre-pandemic levels over time, and we are optimistic about gradual improvement later in the year," said Chairman and CEO Mike Hsu.
The company's board has approved a 1.8% increase in the quarterly dividend. The quarterly dividend of $1.16 per share will be payable on April 4 to stockholders of record on March 4.
Outlook: Kimberly-Clark expects FY22 sales to increase 1% - 2%. The company sees FY22 EPS of $5.60 - $6.00 versus the consensus of $6.70.
Price Action: KMB shares are trading lower by 5.82% at $131.50 in premarket on the last check Wednesday.

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