Kimberly-Clark Corporation(KMB) Goldman Sachs Global Staples Forum Conference (Transcript)

Summary of Kimberly-Clark Corporation Conference Call Company Overview - Company: Kimberly-Clark Corporation (NYSE: KMB) - Date: May 17, 2022 - Participants: - Mike Hsu - Chairman and CEO - Nelson Urdaneta - CFO - Jason English - Goldman Sachs Core Industry Insights - Industry: Consumer Staples, specifically in personal care and hygiene products - Market Position: Holds number one and number two market positions in about 80 countries with iconic brands like Huggies, Kleenex, Kotex, and Scott [4][5] Strategic Focus and Growth - Purpose: Committed to providing better care for a better world, aiming to advance the well-being of 1 billion people by 2030 and reduce environmental footprint by half [4] - Growth Strategy: - K-C Strategy 2022 focuses on driving growth through iconic brands, cost discipline, and capital allocation [5] - Achieved an average organic sales growth of 3% over the last three years and cumulative savings of over $1.5 billion through cost-saving programs [5][9] - Returned$6.3 billion to shareholders through dividends and buybacks [5] Market Dynamics - Personal Care Segment: - A $10 billion business with growth accelerating from 1$2.7 billion over the last two years due to global supply chain disruptions [8][9] - Increased selling prices to offset inflation and maintain market share [9] Organizational Changes - Leadership Transition: - Appointment of Nelson Urdaneta as CFO, bringing extensive operational and financial expertise [12][13] - Focus on diversity of thought and experiences within the leadership team [14][17] Transformation and Innovation - Organizational Transformation: - Emphasis on brand building and leveraging scale for faster market response [19][22] - Shift towards a more centralized approach while maintaining local agility [20][22] - Innovation Focus: - Development of products like the 5D diaper in China, which has led to market share growth despite overall market challenges [29][32] Market Outlook - China Market: - Remains a long-term growth engine despite recent challenges, with significant opportunities for share growth in the diaper and fem care markets [32][33] - Emerging Markets: - Indonesia identified as a key growth market, with Softex acquisition expected to enhance market presence [42][43] Financial Performance and Cost Management - Cost Management: - Committed to margin recovery and expansion despite ongoing cost pressures [55][56] - Expectation of neutral pricing net of costs by the end of the year, with a focus on productivity programs [52][57] Consumer Behavior Insights - Price Sensitivity: - Observations of varying consumer sensitivity across markets, with potential down-trading in Latin America due to economic pressures [65][66] - Category Resilience: - Essential nature of products like bath tissue leads to stable demand despite price increases [62][63] Conclusion - Kimberly-Clark is focused on sustainable growth through strategic brand management, innovation, and effective cost management while navigating challenges in the global market environment. The company remains committed to delivering long-term value to shareholders and enhancing its market position across various regions.