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KMB Stock Up 3.25% Following Release of Kimberly-Clark Year-End 2020 Results

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by Benjamin Godfrey · 3 min read
KMB Stock Up 3.25% Following Release of Kimberly-Clark Year-End 2020 Results
Photo: Depositphotos

Kimberly-Clark’s full-year 2020 net sales came up at $19.1 billion, showing a 4 percent increase, with organic sales up 6 percent. The organic sales for the fourth quarter grew by 5 percent. 

American multinational personal care corporation that produces mostly paper-based consumer products, Kimberly-Clark Corp (NYSE: KMB) has seen an increase in its stock price following the release of its better than expected year-end 2020 financial report. Per the official earnings released, the firm had a net sales of $4.8 billion for the fourth quarter, representing a 6 percent increment in the year-ago period.

Many companies are in the era of rolling out their financial report for the previous year. Quite a number of firms around the world have borne a brunt from the coronavirus pandemic, but many have managed to stay resilient through last year with redefined business and operational strategies. KMB reportedly pulled through the crises by a number of a targeted cost savings strategy.

“In 2020, we grew organic sales 6 percent, with healthy underlying performance and increased demand because of COVID-19. We also significantly increased brand investments and improved our market share positions. In addition, we achieved $575 million of cost savings and returned $2.15 billion to shareholders through dividends and share repurchases,” said Mike Hsu, Kimberly-Clark’s Chairman, and Chief Executive Officer.

Per the financials, Hsu noted that the firm grew its earnings per share by 12 percent, outperforming its mid-term projections. KMB’s full-year 2020 net sales came up at $19.1 billion, showing a 4 percent increase, with organic sales up 6 percent. The organic sales for the fourth quarter grew by 5 percent.

Diluted net income per share for the fourth quarter was $1.58 in 2020 as against $1.59 in the same time period in 2019. Full-year diluted net income per share was $6.87 in 2020 and $6.24 in 2019. Amidst these figures, KMB’s Full-year adjusted earnings per share were $7.74 in 2020, up 12 percent compared to $6.89 in 2019.

KMB Stock Boosted amidst Bullish Revenue Figures

Following the released earnings report, KMB stock closed up by 3.25% on Monday to $136.51 per share and complemented by another 0.36% push to $137 in the pre-market. While not all of KMB’s earnings performance was impressive across the board, the firm’s growth across its core business segments bolstered its current stock performance.

The personal care segment saw a $2.3 billion sales boost in the fourth quarter, representing an increase of 5 percent. Volumes increased 3 percent and net selling prices and product mix each improved 1 percent. The consumer tissue segment saw Fourth-quarter sales of $1.7 billion with a corresponding increment of 14 percent year-on-year. The K-C Professional (KCP) Segment decreased by 9 percent and volume plunged by 13 percent. This drop in KCP according to the company reflected lower away from home demand and challenging business conditions following the outbreak of COVID-19.

Kimberly-Clark 2021 Financial Year Outlook and Planning Assumptions

The firm is projecting a Net sales increase of 4 to 6 percent and an adjusted operating profit at or better than 2 percent. KMB also expects an adjusted non-operating expense to decrease year-on-year.

While the vaccination program is underway in the United States as well as other countries, businesses may come back to normal, returning KMB’s businesses to pre-pandemic levels and help attain the projected earnings guidance.

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Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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