Kimberly-Clark de México (KIMBERA) Q2 2025 earnings summary

Executive summary

• Quarterly sales reached MXN 14.1 billion, flat year-over-year but marking an all-time record despite economic headwinds.

• Exports grew 24–24.5% year-over-year, offsetting declines in domestic Consumer and Away from Home segments.

• Gross profit and operating profit fell 9.7% and 13–13.9% year-over-year, with margins pressured by higher costs and Peso depreciation.

• Net income was MXN 1.9 billion, EPS at 62¢; strong cash position of MXN 11 billion and no debt maturing this year.

• Cost reduction program delivered MXN 500 million in savings for the quarter.

Financial highlights

• Cost of goods sold increased 7.2% year-over-year, mainly due to higher recycled fiber and fluff costs, and a 17% weaker Peso.

• EBITDA was MXN 3.6 billion, down 11.5–12% year-over-year, with a 25.4% margin.

• Gross margin declined to 38.2%.

• Earnings per share for Q2 2025 were MXN 0.62, compared to MXN 0.69 in Q2 2024.

• Net debt to EBITDA ratio at 1.0; EBITDA to net interest coverage at 10x.

Outlook and guidance

• Expectation of volume and sales growth acceleration in the second half, driven by healthier inventories, innovation, and strategic pricing.

• Raw material cost pressures expected to moderate, with some input prices declining and FX improving.

• Margins anticipated to improve if tailwinds from cost and FX persist; confidence in maintaining or improving margin guidance.

• Continued focus on cost savings, innovation, and multi-tier product strategy to support growth.

• Brands remain strong and market leadership is maintained despite a slower economic environment.