K-C de Mexico reports Q1 net earnings of 1.17B pesos, up 26% from year-ago period as net sales rise 6% to 7.57B pesos
April 18, 2013
-Sales growth of 6 percent and domestic sales growth of 8 percent.
-Gross and operating margins continued improving year-over-year.
-$2.2 billion pesos of EBITDA, an 18 percent increase.
-Earnings per share increased 26 percent.
We had another strong quarter with net sales growing 6 percent, operating profit 23 percent and net income 26 percent.
Our multi-brand, multi-tier and multichannel strategy allowed us to grow 8 percent in the Mexican market, in line with a 7 percent increase in consumer products.
All of our main categories grew, and those where we see great growth potential, like wet wipes and incontinence products continued to show accelerated growth. Sales of away
from home products in our professional business posted an 11 percent increase.
This quarter exports sales were again lower than the same period of last year mainly because more production capacity was dedicated to our consumer products and because
sales of finished product to Kimberly-Clark decreased.
We had better dollar denominated prices in most raw materials which, in addition to improved manufacturing efficiencies, continuous cost savings, and a better exchange rate comparison translated into a positive cost scenario.
The first quarter operating profit rose 23 percent, with an operating margin of 23.9 percent, up 340 basis points compared to the prior year.
EBITDA for the quarter was $2.2 billion pesos, an 18 percent increase.
Net income grew 26 percent mainly as a consequence of our strong operating profit performance.
In the last twelve months we have invested $1,491 million pesos ($1,136 million in Capex, and $355 million in our share buy-back program) and paid $3,783 million pesos in dividends to our shareholders.
As of March 31 the company held $4,729 million pesos in cash and equivalents. The increase in cash comes from improvements in operating profit and working capital. In dollars, under US GAAP, net sales grew 9 percent, operating profit grew 22 percent and net income grew 29 percent. These results were influenced by a 4 percent stronger peso.
The company has one derivative financial instrument to hedge interest rates. Changes in the market price of this instrument would not materially impact future results.
Kimberly Clark de México S.A.B. de C.V. is a Mexican company that manufactures and commercializes branded consumer products such as diapers, feminine pads, bath tissue, napkins, facial tissue, paper towels and wet wipes. We are market leaders in almost all of our categories with brands such as Huggies, Kleen-Bebé, Kleenex, Kimlark, Pétalo, Cottonelle, Depend, Kotex and Evenflo.
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