4 % like-for-like turnover increase
“We delivered a solid first quarter with good organic sales growth and cost savings“, Kimberly-Clark’s CEO Thomas J. Falk said. The company managed to boost its first quarter profit 1.3 % to 538 million dollars (nearly 400 million euro), partly thanks to a 70 million dollar cost-saving program.
Huggies’ and Kleenex’ American manufacturer managed a 4 % like-for-like turnover increase (3 % thanks to volume growth and 1 % thanks to higher prices), but averse exchange rates and the huge European change of course resulted in a nearly 1 % turnover drop to 5.278 billion dollars (some 3.8 billion euro).
Diapers and tissues
Most of Kimberly-Clark’s turnover is generated in two branches: Personal Care (with Huggies’ disposable diapers) and Consumer Tissue (with Kleenex’ paper tissues). The former is worth 2.38 billion dollar in turnover, while the latter contributes 1.69 billion. At the end of 2013, the company confirmed its plans to spin-off its medical branch, which produces sterile gauze, surgical face masks and catheters. Falk hopes this move will be concluded in the second part of 2014.
The company had also announced a grand restructuring of its Western and Central European activities in October 2013, including an exit for diaper brand Huggies from most countries (except for Italy) and a more streamlined tissue activity. Up until then, that branch brought in half a billion dollars, but it barely managed to contribute to the company profit. The reorganization has already cost the company some 390 million dollars.
