Executive Summary
*Fourth quarter 2021 net sales of $5.0 billion increased 3 percent compared to the year-ago period, including organic sales growth of 3 percent. Full-year 2021 net sales of $19.4 billion increased 2 percent, with organic sales down 1 percent.
*Diluted net income per share for the fourth quarter was $1.06 in 2021 and $1.58 in 2020. Full-year diluted net income per share was $5.35 in 2021 and $6.87 in 2020.
*Fourth quarter adjusted earnings per share were $1.30 in 2021, down 23 percent compared to $1.69 in 2020. Adjusted earnings per share exclude certain items described later in this news release.
*Full-year adjusted earnings per share were $6.18 in 2021, down 20 percent compared to $7.74 in 2020. The company’s previous guidance was for adjusted earnings per share of $6.05 to $6.25.
*Net sales in 2022 are expected to increase 1 to 2 percent, including organic sales growth of 3 to 4 percent. Diluted net income per share for 2022 is anticipated to be $5.60 to $6.00.
*The company’s Board of Directors has approved a 1.8 percent increase in the quarterly dividend, which is the 50th consecutive annual increase in the dividend.
Chairman and Chief Executive Officer Mike Hsu said, “Our teams have been executing well in this challenging macro and operating environment, maintaining cost discipline, balancing pricing initiatives, taking care of our customers, and continuing to build our brands and grow share. We were especially pleased with our topline growth in personal care and D&E over the year.”
Hsu continued, “Looking ahead, we will continue to invest in innovation, supporting our brands, and accelerating topline growth. While we expect inflation and supply-chain disruption to persist into 2022, we are committed to recovering margins to pre-pandemic levels over time, and we are optimistic about gradual improvement later in the year.
We remain confident in the potential of our categories in the near and long-term, and in our ability to create meaningful shareholder value while we work to achieve our purpose of better care for a better world. I am grateful for the incredible dedication of our talented teams in 2021, and we are committed to doing all we can to ensure a safe, healthy, and rewarding work environment in the year ahead.”
Fourth Quarter 2021 Operating Results
Sales of $5.0 billion in the fourth quarter of 2021 increased 3 percent versus the prior year. Organic sales increased 3 percent as net selling prices rose 2 percent and product mix increased sales 1 percent. In North America, organic sales were even with year-ago in consumer products and increased 2 percent in K-C Professional. Outside North America, organic sales rose 8 percent in developing and emerging (D&E) markets and 2 percent in developed markets.
Fourth quarter operating profit was $521 million in 2021 and $749 million in 2020. Results in both periods include charges related to the 2018 Global Restructuring Program. Results in 2020 also include Softex Indonesia acquisition-related costs and a benefit from the resolution of a business tax matter in Brazil.
Fourth quarter adjusted operating profit was $611 million in 2021 and $767 million in 2020. Results were impacted by $530 million of higher input costs, driven by pulp and polymer-based materials, distribution and energy costs. Results benefited from organic sales growth, $115 million of cost savings from the company’s FORCE (Focused On Reducing Costs Everywhere) program, $35 million of cost savings from the 2018 Global Restructuring Program, lower other manufacturing costs and reduced marketing, research and general expense. Foreign currency transaction effects also positively impacted the comparison.
The fourth quarter effective tax rate was 20.9 percent in 2021 and 24.6 percent in 2020. The fourth quarter adjusted effective tax rate was 21.9 percent in 2021 and 22.2 percent in 2020. Kimberly-Clark’s share of net income of equity companies in the fourth quarter was $10 million in 2021 and $38 million in 2020. Results were negatively impacted by input cost inflation and 2018 Global Restructuring Program charges.
more at: https://investor.kimberly-clark.com/news-releases/news-release-details/kimberly-clark-announces-year-end-2021-results-and-2022-outlook