Kimberly-Clark Increases Prices, Predicts Higher Sales for FY22
On a day when Kimberly-Clark Corporation announced it is partnering with the Arbor Day Foundation to plant up to 150,000 trees, the company also reported growth of another kind in its quarterly earnings report Friday (April 22).
While the company plans to increase prices as inflation continues to rise, it still expects to see higher sales for fiscal 2022, according to a company press release highlighting its first-quarter earnings.
The company’s first-quarter 2022 net sales increased 7% year over year to $5.1 billion, including a 10% increase in organic sales during that three-month period. As a result of that performance, Kimberly-Clark has boosted its full-year organic sales growth target to 4% to 6% from the previous 3% to 4%.
“I’m pleased with our team’s continued excellent execution during this volatile and highly inflationary environment,” said Chairman and CEO Mike Hsu in the release. “We delivered double-digit organic sales growth with strong increases across all our segments in the first quarter. Our growth strategy is working, and we’re continuing to invest in our business. Additionally, we continue to take the necessary actions to mitigate macro headwinds and remain committed to improving our margins over time.”
The company celebrated its 150th anniversary March 26 and kicked off a social media partnership with the Arbor Day Foundation Friday that could see up to 150,000 new trees planted across the country.
During the week of the 150th Arbor Day celebration (April 22-29), the Arbor Day Foundation will plant one tree for each Instagram, Twitter or Facebook post that uses the hashtag #ArborDay, up to 75,000 trees. Kimberly-Clark will provide matching funds to bring the maximum total to 150,000 trees planted.
Earlier this week, Procter & Gamble (P&G) said it will increase some prices and discount others as its strategy to battling increasing inflation.
Read more: P&G Uses Brand Strength, at Both Ends of Price Spectrum, to Withstand Inflation