Kimberly‑Clark reported third‑quarter 2025 net sales of $4.20 billion, essentially flat year‑over‑year, after a 2.2 % negative impact from the exit of its private‑label diaper business in the United States. Organic sales grew 2.5 %, driven by 2.4 % volume expansion, while portfolio mix and pricing remained broadly unchanged.
Gross margin for the quarter was 36.0 %, including $34 million of transformation‑related charges; adjusted gross margin was 36.8 %, down 170 basis points versus the prior year. The margin compression was driven by cost inflation, tariff‑related expenses, and pricing actions that offset the benefit of the transformation charges.
Operating profit was $621 million, or $683 million on an adjusted basis, and diluted earnings per share attributable to Kimberly‑Clark were $1.34 reported and $1.82 adjusted. The effective tax rate rose to 45.4 % (26.5 % on an adjusted basis) due to a higher tax expense and lower interest income, largely attributable to the One Big Beautiful Bill Act and prior‑year tax matter resolutions.
For comparison, Q3 2024 net sales were $4.144 billion and reported diluted EPS was $2.69, illustrating that sales were flat while earnings declined. The company’s operating segments performed as follows: North America $2.10 billion, International Personal Care $1.30 billion, International Family Care $0.50 billion, and Professional $0.30 billion. The exit of the private‑label diaper business impacted the North America segment.
The company reiterated its 2025 outlook, forecasting net sales to be slightly below prior year levels because of a 100‑basis‑point currency impact and a 290‑basis‑point headwind from the PPE divestiture and private‑label exit. Adjusted operating profit and EPS are expected to grow at low single‑digit rates, and adjusted free cash flow is projected at roughly $2 billion.
Management emphasized that the Powering Care strategy continues to drive innovation, cost controls, and transformation initiatives. The company cited ongoing cost inflation, geopolitical uncertainties, and competitive pressure from private‑label brands as key challenges, while highlighting product innovation and market expansion as opportunities.
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