July 23 (Reuters) - Kleenex tissue maker Kimberly-Clark ( KMB )
on Tuesday raised its forecast for full-year profit
after beating Wall Street estimates for second-quarter profit,
betting on higher prices and steady demand for its personal care
products.
Demand for Kimberly-Clark's ( KMB ) products including those for
skin health and hygiene held steady, as consumers grappling with
rising costs of living prioritized shopping for essentials and
helped in lifting its volumes.
The company continues to see resilient purchase patterns and
healthy volumes in its product categories without a lot of trade
down, said Chris Jakubik, head of Kimberly Clark's ( KMB ) investor
relations told Reuters.
Increased innovation in products and supply improvements
helped Kimberly-Clark ( KMB ) in lifting volumes by 3% in its personal
care business, a major revenue contributor, which dropped 3%
last year.
The company's overall volumes rose 1% in the quarter, while
its prices were up 2%.
For the full-year the company expects earnings per share to
grow at a mid-to-high teens percentage rate, up from the
previously expected low-teens percentage rate.
Benefits from increasing its prices to 6% in its personal
care business coupled with an 8% growth in organic sales helped
offset higher input costs such as manufacturing and supply-chain
related investments and expand its margins by 290 basis points
to 36.9%
On an adjusted basis, the Huggies diaper maker's profit of
$1.96 per share for the quarter ended June 30, topped analysts'
estimates of $1.71 per share, as per LSEG data.
However, due to retailer inventory reductions in North
America, its major revenue generating region, the company
maintained its annual organic sales forecast and posted
quarterly sales of $5.03 billion, missing analysts' estimates of
$5.10 billion.
It continues to project annual organic sales to grow at a
mid-single digit rate.