US-based Kimberly-Clark Corporation, a multinational personal care company, reported third-quarter fiscal 2023 (Q3 FY23) sales of $5.1 billion, a 2 per cent increase from last year. Organic sales rose by 5 per cent, although foreign currency exchange rates decreased total sales by approximately 2 per cent.

In North America, the company saw a 7 per cent increase in organic sales, including a 9 per cent rise in the personal care segment, a 4 per cent increase in consumer tissue, and a 7 per cent growth in K-C Professional. Outside of North America, organic sales grew by 5 per cent in developing and emerging markets, while remaining flat year-on-year in developed markets like Australia, South Korea, and Western and Central Europe, Kimberly-Clark said in a press release.

The company's gross margin improved notably, increasing by 530 basis points to 35.8 per cent. Third-quarter operating profit was $774 million, an 18 per cent increase from $655 million in the same quarter last year. This led to an operating margin of 15.1 per cent. Additionally, the net income of equity companies increased to $50 million, driven by Kimberly-Clark de Mexico. Diluted Earnings Per Share (EPS) rose by 25 per cent to $1.73.

In terms of segments, personal care reported sales of $2.7 billion, a 3 per cent increase, with an operating profit of $502 million, up 19 per cent. Consumer Ttissue sales stood at $1.6 billion, a 1 per cent decrease, but with a third-quarter operating profit increase of 22 per cent to $267 million. K-C Professional saw sales of $854 million, a 2 per cent increase, and an operating profit of $168 million, a whopping 41 per cent increase.

For the first nine months of FY23, Kimberly-Clark recorded sales of $15.5 billion, a 2 per cent increase from the same period last year. Gross margin improved by 400 basis points to 34.2 per cent. The operating profit for the first nine months was $1.7 billion, compared to $2 billion in FY22. Adjusted operating profit stood at $2.3 billion, compared to $1.9 billion in FY22. The diluted earnings per share for the first nine months were $3.70 in FY23, down from $4.22 last year, while the adjusted EPS were $5.06, up from $4.09 last year.

"We delivered another strong quarter, with organic growth across all segments and continued margin progress," said Kimberly-Clark’s chairman and CEO Mike Hsu. "I'm proud of how our teams around the world are executing our growth strategy. Our innovation and commercial capabilities continue to enhance the value proposition of our brands, while strong execution of our revenue growth management and ongoing productivity programs enabled us to restore gross margin to pre-pandemic levels."