Kimberly-Clark Reports Q1 2025 Results and Adjusts Full-Year Outlook Amid Geopolitical Uncertainty
Kimberly-Clark Corporation (NYSE: KMB) announced its first quarter 2025 financial results, citing solid operational performance driven by strong execution and cost discipline, while adjusting its full-year outlook due to increased supply chain costs in a more volatile geopolitical environment.
First-quarter net sales totaled $4.8 billion, a 6.0% decline from the prior year. The drop was attributed to foreign currency impacts (-2.4%) and the divestiture of its PPE business and exit from the U.S. private label diaper category (-2.0%). Organic sales declined by 1.6%, reflecting a 1.5% drop in pricing, while volume and mix remained flat.
Reported gross margin stood at 35.8%, including charges from the company’s 2024 Transformation Initiative. Excluding these charges, adjusted gross margin was 36.9%, down 20 basis points year-over-year. Operating profit came in at $769 million, or $844 million on an adjusted basis, down 6.0% versus the prior year.
Diluted earnings per share (EPS) were $1.70 on a reported basis, down from $1.91 in Q1 2024. Adjusted EPS was $1.93, representing a 4.0% decline. The decrease was partly offset by a lower adjusted tax rate of 21.4%, compared to 23.6% in the prior year.
Chairman and CEO Mike Hsu expressed confidence in the company’s strategic direction and ability to manage through rising costs. He highlighted the ongoing success of Kimberly-Clark’s innovation strategy and the company’s progress under its “Powering Care” plan.
Despite headwinds, the company emphasized continued investments in productivity and market share gains through a diversified value offering across its portfolio. The full-year outlook has been revised to account for potential incremental global supply chain costs stemming from a more uncertain geopolitical backdrop.