Kimberly-Clark de México (KIMBERA) Q4 2024 earnings summary

Executive summary

• Achieved record annual sales of MXN 54.8 billion, up 2.8% year-over-year, and record EBITDA of MXN 14.9 billion, representing 27.2% of sales.

• Fourth quarter net sales rose 3% to MXN 13.8 billion, with consumer products and exports up 3.1% and 7.1%, respectively.

• Net income for the year reached an all-time high of MXN 7.8 billion, 14.3% of sales, up 12% year-over-year.

• Strong cost reduction program delivered MXN 1.7 billion in annual savings and MXN 500 million in Q4.

• One-time restructuring charge of MXN 130 million pre-tax in Q4 related to facility consolidation.

Financial highlights

• Q4 gross profit decreased 1.1%, with a margin of 39.1%; full-year gross profit up 8%.

• Q4 operating profit fell 7.3%, with a margin of 21.4%; full-year operating profit up 8%.

• Q4 EBITDA was MXN 3.5 billion, down 5.6%, with a margin of 25.4%; full-year EBITDA reached MXN 14.9 billion.

• Q4 net income was MXN 1.8 billion, EPS $0.59, a 6% decrease year-over-year; full-year EPS up 12% to $2.55.

• Cost of goods sold increased 5.8% in Q4; higher costs for virgin fibers, resins, and fluff impacted margins.

Outlook and guidance

• 2025 expected to be challenging due to economic slowdown and a 20% higher exchange rate, especially in H1.

• Selective price increases planned, expected to yield a 4% average increase for the year.

• Anticipated annual cost savings of MXN 1.8–2.0 billion.

• EBITDA margin expected to remain within target range despite FX pressures.

• Cost reduction initiatives continue to support margins despite material cost pressures and FX headwinds.