The following is a summary of the Kimberly-Clark De México, S. A. B. De C. V. (KCDMY) Q4 2023 Earnings Call Transcript:

Financial Performance:

• Kimberly-Clark De México reported Q4 sales of MXN 13.4 billion, a 4.5% increase from Q4 2022.

• Gross profit saw a significant increase of 22.9%, resulting in a margin of 40.8%.

• Operating profit rose by 25.8%, yielding an operating margin of 23.8%.

• Despite substantial decreases in tissue parent roll exports, bottom-line saw an increase due to favorable factors such as higher volumes and efficiencies, better raw material prices, and cost reduction efforts.

• The company generated MXN 3.7 billion of EBITDA, an increase of 25.5%, with EBITDA margin at 27.7%.

• Net income for the quarter was MXN 1.9 billion, representing a 35.7% increase.

Business Progress:

• The Consumer Products and Away from Home segments contributed significantly to the quarterly revenues with growth rates of 6.9% and 10.7% respectively.

• The cost of goods sold saw a decrease by 5% due to favorable factors in virgin and recycled fibers, SAM and resins.

• The company saved approximately MXN 450 million in the quarter from its cost reduction program spanned across sourcing, materials improvement, and process efficiencies.

• Kimberly-Clark De México invested MXN 1.7 billion in CapEx targeting technology improvements, cost reductions, efficiencies, and capacity additions.

• The company enjoys a strong financial position with a cash position of MXN 19 billion and a manageable net debt-to-EBITDA ratio of 0.9x.

• The company is planning extensive investments into innovation and conversion capacity in the upcoming year.

More detailed: KIMBERLY-CLARK DE MEXICO SAB DE CV ADR-REPR 5 ORD'A'NPV IR

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