Recent developments at Kimberly-Clark (NYSE: KMB) indicate that the company could see a significant jump in revenues over the next 12-24 months. This would be made possible by further expansion of the company’s market share in Venezuela for bathroom products, which currently stands at 15%. Kimberly-Clark’s recent agreements with Premier Healthcare Alliance would also result in stronger growth for its medical disposable products’ division.
Kimberly-Clark has also redesigned few of its products, including the popular GoodNites Underwear, to improve their functionality and increase unit sales. We expect the redesigned products to gain traction with customers, translating into improved top line for this division. 
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Capacity Expansion In Venezuela Hints Towards Higher Future Market Share
Kimberly-Clark recently announced its plans to expand Venezuelan production capacity by investing $37.1 million (234 million Bolivar) over the next 6-24 months. Kimberly-Clark currently has a 15% market share for toilet papers in Venezuela. The country is facing an uneasy shortage of basic bathroom products due to adverse economic conditions and import frictions. 
Venezuela accounted for about 2% of consolidated net sales of Kimberly-Clark for the year ended December 31, 2012.  The company’s latest decision to invest $37.1 million would increase the current production capacity by about 40%, which can translate into higher sales. The growth in Venezuela alone would drive up the consolidated revenues by about 1% over the next 12-24 months. This would also increase the company’s market share in Venezuela to about 21%. Tissue papers currently account for over 40% of the stock’s intrinsic value, which may see an uptick following the expansion.
Healthcare Alliance Agreements To Strengthen Medical Disposables Division
Kimberly-Clark has been awarded three group purchasing agreements with the Premier Healthcare Alliance for its KimVent Oral Care products and the Pediatric Microcuff Endotracheal Tube.  Premier Healthcare Alliance is the United States’ largest network of community hospitals and other healthcare facilities, enabling them to save costs by sourcing medical disposables and other products in bulk. Premier Healthcare Alliance has in its network about 2,800 U.S. community hospitals and about 95,000 non-acute healthcare facilities and physician offices. 
Under the three contracts, the network hospitals and other care sites will be able to procure KimVent Oral Care products and the Pediatric Microcuff Endotracheal Tube from Kimberly-Clark at a specially negotiated price. Kimberly-Clark will benefit from higher volume sales as more than 50% of the total number of hospitals and other care sites in the U.S. are tied to the network of Premier Healthcare Alliance.  Kimberly-Clark medical disposables division currently has about 1.07% market share globally, which would rise in the coming quarters due to these agreements.
Trefis price estimate for Kimberly-Clark stands at $100, which is in line with the current market price.Notes:
- Kimberly-Clark Boosts GoodNites Brand – Analyst Blog, Zacks.com, July 2013 [↩]
- Kimberly-Clark moves to ease Venezuelan toilet paper shortage, Reuters, June 2013 [↩]
- Annual Filings [↩]
- Kimberly-Clark Awarded Three Premier Healthcare Alliance Agreements, PRNewswire, June 2013 [↩]
- Premier Healthcare Alliance [↩]
- Fast Facts on US Hospitals, American Hospitals Association [↩]