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Kimberly-Clark Corporation (NYSE:KMB) shares slid on Wednesday as the company reported a reliance on pricing actions to drive revenue growth.
For the fourth quarter of 2022, the consumer staples manufacturer posted $1.54 in adjusted earnings per share and $5B in revenue. Analysts had anticipated $1.51 and $4.99B, respectively. The company reported 5% organic sales growth in the quarter, supported by a 10% increase in net selling prices. Product mix increased sales 1% while volumes declined 7%.
“Kimberly-Clark delivered 7 percent organic growth in 2022 and an average of 4 percent organic growth on a three-year basis,” Chairman and CEO Mike Hsu. “We mitigated inflationary pressures with successful revenue growth management initiatives and maintained cost discipline while continuing to invest in our business.”
For the full-year 2023, the company expects net sales growth to range from flat to 2% with organic sales growth between 2% and 4%. Analysts anticipated a forecast of 3.15% for the latter metric.
Foreign currency fluctuations are anticipated to result in a 2% negative impact on operating profits, amounting to an approximately $300M to $400M movement. Earnings per share are expected to increase 2% to 6% from 2022.
Shares of the Texas-based consumer staples manufacturer fell 4.06% shortly after the print.