Kimberly-Clark de Mexico, S. A. B. de C. V. (KCDMY) Q4 2024 Earnings Call Transcript

2025-01-24 15:53:01 ET

Kimberly-Clark de Mexico, S. A. B. de C. V. (KCDMY)

Q4 2024 Earnings Conference Call

January 24 2025 9:30 AM ET

Company Participants

Pablo González - Chief Executive Officer

Xavier Cortés - Chief Financial Officer

Salvador Escoto - Treasurer/Investor Relations

Conference Call Participants

Tiago Harduim - Citi

Alejandro Fuchs - Banco Itaú BBA

Antonio Hernandez - Actinver

Robert Ford - Bank of America

Joseph Giordano - JP Morgan

Juan Guzman - Scotiabank

Jorge Izquierdo - BTG Pactual

Pallavi Nagia - HSBC Bank

Presentation

Operator

Good day, everyone. And welcome to today's Kimberly-Clark de Mexico’s 4Q24 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session [Operator Instructions]. Please note this call is being recorded and I will be standing by if you should need any assistance.

It is now my pleasure to turn the conference over to Mr. Pablo González.

Pablo González

Thank you, Shelby. Hello, everyone. Thanks for participating on the call. We hope that your year is off to a great start and our very best wishes for you and your families in 2025. This time around, we'll go straight to results, and then I'll make some brief comments about our expectations going forward. Xavier?

Xavier Cortés

Thanks. Good morning. During the quarter, we were able to deliver strong margins in spite of the significant FX impact and cost pressures. Our sales were MXN 13.8 billion, a 3% increase versus the fourth quarter of 2023. Total volume was up 0.5% and price mix was also up 2.5%. Net sales were boosted by Consumer Products and Exports, which grew 3.1% and 7.1% respectively.

Year-over-year, Consumer Products volume grew 2.4% and price mix was up 0.7%. Export volume was down 15.1% while price mix was up 22.2%. Sequentially, sales were up 4.7% with Consumer Products increasing 7.8%, mainly volume driven, and Away from Home 5.9%.

In the quarter, cost of goods sold increased 5.8%. Against last year, SAM was favorable while virgin fibers, resins, and fluff compared negatively. Energy was down. The FX was higher, averaging 14% more. Our cost reduction program once again had very good results and yielded approximately MXN 500 million of savings in the quarter. These savings are mainly at the cost of goods sold level and are generated by sourcing materials improvements and process efficiencies. ...

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