Kimberly-Clark de México (KIMBERA) Q1 2025 earnings summary

Executive summary

• First quarter sales reached MXN 13.8 billion, flat year-over-year, amid slower consumer demand and a 1.3% volume decline, with price/mix up 1.6%.

• Net income was MXN 1.8 billion, down 12% year-over-year, with EPS of MXN 0.60.

• Gross profit declined 9.4% and operating profit fell 12.5% year-over-year, but margins remained within target ranges despite significant FX headwinds and raw material cost increases.

• The company is entering the pet food market through a partnership with Grupo Nutec, launching two new brands and aiming for medium-term growth and portfolio diversification.

• Cost savings program delivered MXN 450 million in the quarter.

Financial highlights

• EBITDA was MXN 3.5 billion, down 10.9% year-over-year, with an EBITDA margin of 25.1%.

• Operating income decreased 12% to MXN 3.0 billion; margin at 21.5%.

• Gross margin was 38.2%, down from the prior year.

• Net debt to EBITDA ratio is 0.9x; cash position stood at MXN 11.8 billion as of March 31.

• Financial cost was MXN 295 million, lower due to reduced debt.

Outlook and guidance

• Second quarter is expected to remain challenging due to economic slowdown and soft consumer demand, but growth is anticipated to accelerate in the second half of the year.

• Selective price increases are being implemented, with a net impact of 3-4% expected in the second half.

• Margins are expected to remain within the 25%-27% target range for the year, barring significant changes in the external environment.

• Record cost savings of MXN 1.8–2 billion targeted for the year, with further opportunities identified for 2026–2027.

• Commitment to maintain a solid capital structure while distributing cash to shareholders.