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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