Kimberly-Clark(KMB)2021-09-08 17:03Summary of Kimberly-Clark Corporation Conference Call Company Overview - Kimberly-Clark Corporation (NYSE: KMB) is a global company with a strong history of innovation and category development, competing in three segments, with Personal Care being the largest, accounting for about 50% of sales [5][6]. Core Strategies and Growth - The company has introduced K-C's Strategy 2022, focusing on three pillars: growing iconic brands, leveraging cost and financial discipline, and capital allocation for value creation. Organic sales have averaged 3% over the last three years, with cumulative savings of 5.4 billion returned to shareholders through dividends and buybacks [7][8]. - The focus on Personal Care is emphasized, particularly in developing and emerging markets (D&E), where there is significant growth potential. The company aims to enhance commercial capabilities and innovate to drive growth [10][12]. Sustainability Commitment - Kimberly-Clark has launched its Sustainability Strategy 2030, aiming to advance the wellbeing of one billion people and reduce its environmental footprint by half, focusing on plastics, water, carbon, and forests [6]. Market Performance and Challenges - The company has experienced volatility in consumer tissue demand due to the pandemic, with recent consumption showing high single-digit to low double-digit growth. However, the demand remains unpredictable [20][21]. - Despite challenges, the company is committed to offsetting inflation through price increases and cost savings, with a focus on maintaining strong brand performance [15][49]. Innovation and Advertising - The company has increased its media investment, with approximately 70% being digital, which has improved targeting and ROI. The focus on innovation and digital marketing is seen as key to driving growth in Personal Care [11][41]. - The advertising strategy emphasizes storytelling and purpose-driven marketing, leveraging data science for personalized consumer engagement [42][45]. Financial Outlook - The company faces unprecedented macro volatility, with commodity costs at all-time highs and supply chain disruptions impacting margins. Actions are being taken to stabilize margins, including price increases and cost-saving measures [47][49]. Key Market Insights - In China, despite declining birth rates, the company has achieved double-digit growth in personal care through premium innovation and strong e-commerce capabilities, positioning itself as a market leader [32][34][36]. Conclusion - Kimberly-Clark remains confident in its ability to deliver balanced and sustainable growth, focusing on innovation, market expansion, and effective cost management to navigate current challenges and create long-term shareholder value [17][49].