WASHINGTON (dpa-AFX) - Kimberly-Clark Corporation (KMB) said the company
will focus on driving a step-change in performance by sharpening its strategic
focus through a new operating model that leverages three synergistic forces:
accelerating pioneering innovation; optimizing margin structure; and wiring
organization for growth. Under the new operating model, Kimberly-Clark will
focus on growing 12 powerhouse brands. The company will implement initiatives
and deploy technology and data analytics designed to create a fast supply chain.
The company estimates planned supply chain modernization to generate more than
$3 billion in gross productivity and $500 million in working capital savings.
Also, in the coming months, the company plans to reorganize operations into
three business segments: North America; International Personal Care; and
International Family Care and Professional.

Kimberly-Clark expects to complete transition to the new organizational
structure by the end of 2024. The actions are expected to generate approximately
$200 million of selling, general and administrative savings in the next few
years.

Kimberly-Clark has set long-term growth and return targets including: organic
net sales growth ahead of market growth; adjusted operating profit growth in the
mid-to-high single digits on a constant currency basis; and adjusted EPS growth
in mid-to-high single digits on a constant currency basis; and annual free cash
flow generation of at least $2 billion. The company expects to incur
approximately $1.5 billion in one-time restructuring and reorganization costs,
split roughly into 50% in non-cash charges and 50% of cash expenses, over the
next three years.

Kimberly-Clark said its 2024 outlook provided in January is consistent with its
new long-term growth and return targets. The company continues to expect to
deliver a low-to-mid single-digit percentage increase in 2024 organic net sales.
Adjusted operating profit is still expected to grow at a high single-digit to
low double-digit rate on a constant-currency basis and adjusted earnings per
share are expected to grow at a high single-digit rate on a constant-currency
basis.



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