Today, Kimberly-Clark announced its Q1 2025 results, which fell short of Wall Street estimates. The company also updated its 2025 financial outlook due to the impact of tariffs.
Kimberly-Clark’s Q1 net sales reached $4.8 billion, a drop of 6% percent, which the company attributed to “impacts of currency and divestitures and business exits, with an organic sales decline of 1.6 percent versus the prior year.”
The company’s North America net sales were $2.7 billion, a decrease of 3.9%, driven by “a combination of the PPE divestiture and the exit of the company’s private label diaper business in the US.”
Kimberly-Clark Chairman and CEO, Mike Hsu, informed investors, “The current environment will now mean greater costs across our global supply chain versus our expectations at the beginning of the year. However, we remain confident in our ability to offset these costs over time and unlock our long-term potential.”
Moving forward, the company has adjusted its 2025 outlook, “To reflect a reassessment of its cost base, including potential impacts from changes in the global geopolitical landscape.” The company now expects its 2025 Adjusted Operating Profit “to be flat to positive on a constant-currency basis versus the prior year, compared to a previous expectation of high single-digit growth on a constant currency basis.”
By CEO NA Editorial Staff