Kimberly-Clark de México (KIMBERA) Q4 2024 earnings summary

Executive summary

• Achieved record annual sales of MXN 54.8 billion, up 2.8% year-over-year, and record EBITDA of MXN 14.9 billion, with margin up 110 bps to 27.2% of sales.

• Fourth quarter net sales rose 3% to MXN 13.8 billion, with consumer products and exports up 3.1% and 7.1%, respectively.

• Net income for the year reached an all-time high of MXN 7.8 billion, representing 14.3% of sales, and Q4 net income was MXN 1.8 billion.

• Strong cost reduction program delivered MXN 1.7 billion in annual savings, including MXN 500 million in Q4.

• Closed one manufacturing facility in Q4, incurring a one-time restructuring charge of MXN 130 million pre-tax to optimize footprint and drive future efficiencies.

Financial highlights

• Q4 gross profit decreased 1.1%, with a margin of 39.1%; full-year gross profit up 8%.

• Q4 operating profit fell 7.3%, with operating margin at 21.4%; full-year operating profit up 8%.

• Q4 EBITDA was MXN 3.5 billion, down 5.6% year-over-year; margin dropped 230 bps to 25.4%.

• Q4 net income was MXN 1.8 billion, EPS $0.59, a 6% decrease year-over-year; full-year EPS up 12% to $2.55.

• Cost of goods sold rose 5.8% in Q4, driven by higher FX and raw material costs.

Outlook and guidance

• 2025 outlook cautious due to economic slowdown and 20% higher FX rates, especially in H1.

• Selective price increases planned, expected to yield ~4% on average for the year.

• Targeting record cost savings of MXN 1.8–2.0 billion in 2025 through manufacturing and supply chain optimization.

• EBITDA margin expected to remain within target range despite FX headwinds.

• Medium-term base growth rate projected in mid-single digits, supported by innovation and expansion into high-potential categories.