Kleenex Maker Kimberly-Clark Restructures Operations To Become 'More Agile and Focused'

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Key Takeaways

• Kimberly-Clark on Wednesday announced a restructuring it said will make its operating structure “more agile and focused.”
• The consumer products company will be divided into three new business segments.
• Kimberly-Clark also is targeting improvements in its cost structures and supply chain.

Consumer products giant Kimberly-Clark (KMB) on Wednesday announced what it called the next phase of its transformation, which includes “a new operating model and key commercial initiatives designed to grow its brands and businesses at a faster pace than its categories.”

Chief Executive Officer (CEO) Mike Hsu said the Kleenex and Huggies maker’s operating structure would be “more agile and focused.”

Kimberly-Clark noted it will now be divided into three new business segments: North America, International Personal Care, and International Family Care and Professional. It also plans to make corporate and regional overhead cost structures more efficient, and modernize its global supply chain.

The company said that the transformation began in the current quarter and will run through the end of 2026. It anticipates the moves will result in a $1.5 billion pre-tax charge.

In addition, Kimberly-Clark set long-term targets of organic net sales growth ahead of market growth, with adjusted operating profit and adjusted earnings-per-share (EPS) growth of a mid-to-high single-digit percentage, and annual free cash flow of at least $2 billion.

Shares of Kimberly-Clark were up 0.5% to $126.69 as of about 3 p.m. ET Wednesday, and have gained around 3.6% year to date.

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