Kimberly-Clark de México (KIMBERA) Q3 2024 earnings summary

Executive summary

• Q3 2024 sales reached MXN 13.2 billion, up 4% year-over-year, with both Consumer Products and Professional segments contributing to growth despite a soft market and aggressive promotions.

• Margins remained strong, supported by exports and operational efficiencies, even as volumes in Consumer Products were slightly down due to reduced promotions and price increases.

• Net income grew 9% and EPS increased 9% for the quarter, 19% for the year.

• EBITDA rose 1% to MXN 3.5 billion, with a margin of 26.3% despite a 16% peso devaluation.

• The company maintained full capacity utilization in tissue machines, leveraging exports to offset lower domestic demand.

Financial highlights

• Q3 2024 sales reached MXN 13.2 billion, up 4% year-over-year; total volume increased 1.8%, with price and mix contributing 2%.

• Consumer Products sales grew 0.6% (volume -1.4%, price/mix +2%), Away from Home up 2.4% (volume +3.9%, price/mix -1.5%), and exports surged 25%.

• Gross profit rose 2% to MXN 5.2 billion; margin at 39.6%.

• Operating profit up 1% to MXN 2.97 billion; margin at 22.5%.

• For the first nine months, net sales grew 3%, EBITDA up 12%, net income up 19%, and EBITDA margin at 27.8%.

Outlook and guidance

• Sales expected to improve sequentially in Q4 2024, driven by volume recovery post-promotional season and ongoing market activities.

• Pulp prices are declining and should positively impact costs in 2025; FX headwinds expected to persist.

• Plans to ramp up innovation and brand investments in 2025 to support stronger growth.

• Margins anticipated to remain healthy, with further cost reduction and price/mix improvements planned.

• Ongoing focus on manufacturing improvements and logistics streamlining.