Kimberly-Clark (NYSE: KMB)

Sector: CPG Countries of operation: Operates in 34 countries, including Brazil, Canada, France, Germany, Nigeria, Thailand and the US, and sells to 175 countries in total Key product categories: Apparel, personal care products, personal hygiene products and tissue products Annual Metrics [caption id="attachment_148449" align="aligncenter" width="702"] Fiscal year ends on December 31[/caption]   Summary Founded in 1872 and headquartered in Dallas, Texas, Kimberly-Clark offers apparel, personal care products, personal hygiene products and tissue products, operating in three segments: consumer tissue, K-C professional and personal care. The company sells products in 175 countries and operates in 34. The company’s top brands include Andrex, Cottonelle, Depend, GoodNites, Huggies, Intimus, Kleenex, Kotex, Neve, Plenitud, Poise, Pull-Ups, Scott, Softex, Sweety, Viva and WypAll. Company Analysis Coresight Research insight: Kimberly-Clark faced strong macroeconomic headwinds from inflation and supply chain inefficiencies in 2021, including in its final quarter (ended December 31, 2021). To combat rising costs, the company plans to implement price increases and continue its cost-saving measures through its Focused On Reducing Costs Everywhere (FORCE) program, which the company expects to result in $300–$350 million in saved costs in 2022. The company also plans to promote organic growth through increased investments in digital advertising, elevating its core business in developed markets and growing in developing and emerging markets, particularly in its personal care segment. Although the company has underperformed the S&P 500 market index in the first few weeks of 2022, we expect the company to deliver steady, sustainable growth this year through its cost-saving strategies and pricing actions.

Tailwinds	Headwinds
Pricing strategies to reduce the pressure of higher input prices Raw material prices including pulp will decrease in 2022, according to the company Completion of 2018 Global Restructuring and FORCE savings, which are forecast to reach $300–350 million High single-digit gains in Asia and Latin America, double-digit growth in Europe, the Middle East and Africa, including in China, Russia and India	Volatile supply environment and limited productivity due to labor shortages, Covid-19 restrictions, and absenteeism Inflation is twice the previous all-time high, half due to distribution and energy prices, and half due to raw material prices Price elasticities are returning

Strategy Kimberly-Clark has outlined the following key focus areas to meet customers’ expectations and to futureproof the group: 1. Accelerate Organic Growth

• Continue investing in advertising, particularly digital advertising—which makes up around 70% of its media mix

2. Enhance Margins

• Continue implementing the FORCE program to generate cost savings and drive ongoing supply chain productivity by leveraging the company’s global organization
• Take pricing actions to combat rising input prices
• Drive down working capital with benefits from global supply chain initiatives
• Retain its long-term goal of elevating categories and expanding markets

3. Reduce Earnings Volatility

• Maintain top-tier return on invested capital
• Allocate excess cash flow to share repurchases to reduce share count
• Provide shareholders with top-tier dividends

Revenue Breakdown (FY21)   Company Developments

Date	Development
February 24, 2022	Kimberly-Clark acquires majority stake in Thinx, a disruptor in the menstrual hygiene product industry and a leader in the reusable period and incontinence underwear category.
January 31, 2022	Kimberly-Clark brand Huggies partners with Sam’s Club to donate up to one million diapers to the National Diaper Bank Network.
January 27, 2022	Kimberly-Clark receives a perfect score on Human Rights Campaign Foundation’s 2022 Corporate Equality Index, a measure for corporate policies related to LGBTQ workplace equality, and is named among the “America’s 100 Most Just Companies for 2022” list.
September 8, 2021	Kimberly-Clark launches the next phase of its Sustainability Strategy 2030, and reports that it has become the highest diaper market share position in China.
July 2, 2021	Kimberly-Clark is named one of the Best Companies for Multicultural Women by Seramount, a strategic personal services firm for promoting inclusivity and diversity in the workplace.

Management Team

• Michael D. Hsu—Chairman and CEO
• Maria G. Henry—Senior VP and CFO
• Jeffrey P. Melucci—Chief Business Development and Legal Officer
• Sandra R. A. Karrmann—Senior VP and Chief Human Resources Officer