Kimberly-Clark de México: A Resilient Q3 Performance Amidst Challenging Market Conditions
On October 18, 2024, Kimberly-Clark de México (OTCPK:KCDMY) hosted its Q3 2024 Earnings Conference Call, providing insight into the company’s robust performance despite a soft market and aggressive promotional environment.
Strong Sales Growth and Margins
CEO Pablo Gonzalez kicked off the call by highlighting the company’s sales acceleration and strong margins. Both the consumer products and professional businesses demonstrated growth, defying market trends. While volumes in consumer products were slightly down due to reduced promotional activities and price increases to offset raw material costs, prices rose 2%, resulting in a 1% sales increase.
Export and Parent Roll Sales: Key Growth Drivers
Growth was largely supported by exports and parent roll sales. The company continued to strengthen its partnership with Kimberly-Clark Corporation, establishing a solid foundation for increased sales of personal care products, particularly in the US market. Additionally, operating its tissue business efficiently contributed to the company’s success.
CFO Xavier Cortés Lascurain Provides Financial Insights
CFO Xavier Cortés Lascurain delved into the financial details of the quarter, offering a comprehensive overview of the company’s performance. His remarks provided valuable context for understanding the company’s strategic decisions and future prospects.
Question-and-Answer Session: Industry Experts Weigh In
The conference call concluded with a question-and-answer session, featuring industry experts from Barclays, Bank of America, Actinver, Citigroup, Morgan Stanley, Scotiabank, and BTG Pactual. Their insightful questions and comments added depth to the discussion, providing a more nuanced understanding of Kimberly-Clark de México’s Q3 performance.
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