Gross margin was 36.0 percent in the quarter, including $34 million, or approximately 80 basis points, of charges related to the Transformation Initiative 2024. Excluding these charges, adjusted gross margin was 36.8 percent, down 170 basis points from the prior year, reflecting strong productivity gains that were more than offset by unfavorable pricing net of cost inflation, reflecting planned investments to improve production levels. price: value across the portfolio as well as incremental costs driven by fees.
Kimberly-Clark reported third-quarter 2025 net sales of $4.2 billion, flat year-over-year despite a 2.2 percent hit from the departure of private label diapers. Organic sales increased 2.5 percent, driven by volume growth. Adjusted gross margin was 36.8 percent, down 170 basis points, and adjusted operating profit was $683 million, flat from last year. For the first nine months, sales fell 2.6 percent to $12.4 billion.
Third quarter operating profit was $621 million. This included 2024 Transformation Initiative charges totaling $62 million. Excluding these charges, adjusted operating profit was $683 million, in line with the prior year, as a combination of lower marketing, research and general expenses driven by efficiency gains, as well as lower incentive accruals compared to the prior year, offset headwinds in gross margin.
“The operating environment remains dynamic, but we continue to execute our strategy with discipline and excellence while playing to win,” he said. Mike Hsu, president and CEO of Kimberly-Clark. “We once again achieved broad-based growth based on volume plus mix, even as volume has been challenged to some extent in the broader industry. We maintained global weighted share, reflecting the strength of our brands across geographies and the scale of good, better, best. We continue to take our decisive actions to transform Kimberly-Clark into an industry-leading personal care company, poised for durable, long-term growth.”
For the first nine months of the year, sales of $12.4 billion decreased 2.6 percent, primarily due to a 3.0 percent negative impact from a combination of the divestiture of PPE and the exit of the company’s private label diaper business in the U.S., as well as a 1.2 percent negative impact from foreign currency translation. Organic sales grew 1.6 percent, primarily from a 2.4 percent increase in volume, partially offset by pricing investments of 0.9 percent, while portfolio mix was broadly in line with that of a year ago, the company said in a news release.
For the first nine months of the year, gross margin was 36.0 percent, including $169 million, or approximately 140 basis points, of charges related to the Transformation Initiative 2024. Excluding these charges, adjusted gross margin was 37.4 percent, down 130 basis points from the prior year, as strong productivity gains were more than offset by unfavorable pricing net of cost inflation, reflecting investments planned to improve price levels: value across the portfolio, as well as incremental costs related to fees.
“I am very proud of how our teams around the world are living our purpose while positioning Kimberly-Clark to create value for our shareholders, customers, consumers and our communities,” Hsu continued.
Fiber2Fashion (RR) News Desk
