Kimberly-Clark de México (KIMBERA) Q2 2024 earnings summary

Executive summary

• Achieved record second quarter net sales of MXN 14.1 billion, up 2.6–3% year-over-year, with strong margin performance and sequential EBITDA margin improvement for the tenth consecutive quarter.

• EBITDA reached a record MXN 4 billion, up 14.8–15% year-over-year, with a margin of 28.7%.

• Net income increased 18.5–19% to MXN 2.1 billion, with EPS of MXN 0.69.

• Cost reduction program delivered MXN 400 million in quarterly savings.

• Continued investments in manufacturing and logistics improvements.

Financial highlights

• Gross profit increased 13.7–14% to MXN 5,954 million, with a margin of 42.3%; operating profit rose 16.8–17% to MXN 3,538 million, margin at 25.1%.

• Year-to-date net sales up 2% to MXN 27,857 million; net income up 24% to MXN 4,214 million.

• Net cash flow from operations for six months was MXN 4,692 million.

• Consumer products sales grew 1.7–2%, away-from-home 3%, and exports 10.5–11%; export finished products grew 67.7%.

• Cost of goods sold decreased 4% year-over-year.

Outlook and guidance

• Expect sales to pick up in the second half, supported by innovation and effective commercial execution.

• Anticipate positive contribution from tissue parent rolls in the second half.

• Margins expected at the high end of the target range for 2024, with strong prospects for next year depending on commodity trends.

• Ongoing focus on cost reduction and operational efficiency.

• Volumes expected to normalize as markets adjust to price increases.