Kimberly-Clark (KMB) Barclays 17th Annual Global Consumer Staples Conference summary

Organizational transformation and employee response

• Transition to a new balanced matrix structure, called Wire for Growth, is progressing well with strong employee support and high engagement in global communications.

• Employees appreciate the focus on key markets and the differentiation between North America, Focus Markets, and Enterprise Markets.

• The shift from a decentralized to a balanced matrix structure aims to retain local agility while leveraging global capabilities.

• Soft cutover to the new structure began in April, with full implementation in July, and early benefits are visible in supply chain collaboration.

• Execution is proceeding smoothly, with high confidence in the ability to deliver on strategic goals.

Supply chain and productivity initiatives

• A new global supply chain organization was established in July, focusing on value stream simplification, network optimization, and digital automation.

• The company targets $3 billion in gross productivity savings over the next five years, aiming for gross margins of at least 40% and operating profit margins of 18-20% by decade's end.

• Integrated Margin Management is being adopted to optimize margins through revenue growth management, risk management, and cost discipline.

• Early results show improved collaboration between functional experts and local markets, with further opportunities identified as the new structure matures.

• Digital tools and robotics are being deployed to enhance procurement, planning, and operational efficiency.

Growth strategy and top-line expectations

• Categories are expected to revert to 2-3% growth, led by volume and mix, after a period of inflation-driven pricing increases.

• The company aims to outpace category growth through innovation, better storytelling, increased advertising, and supply chain-driven margin expansion.

• Emphasis has shifted to volume and mix as key top-line drivers, reflecting a strategic focus on healthy growth and execution.

• Innovation pipeline includes technical platforms like the Two-Zone Liner and multilayer core, with plans to increase both frequency and impact of new product launches.

• R&D investment levels are considered sufficient, with a new leader tasked to drive efficiency and global coordination.