How Are Kimberly-Clark’s Revenues And Earnings Likely To Change Over The Next Five Years?
Kimberly-Clark (NYSE: KMB) generates most of its sales from just a few of its most popular brands – Huggies, Kotex, and Kleenex. Going forward, we expect the company’s revenues and EBITDA to increase by $5 billion and $1 billion, respectively, between 2017 and 2022. We have created an interactive dashboard on how Kimberly-Clark’s revenues, expenses, and profits could change over the next five years. You can adjust the expected segment revenues and margin forecasts, and see its impact on the company’s profitability and earnings.
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Personal Care Segment Will Likely Lead The Growth In The Coming Years
Most of Kimberly-Clark’s growth will likely be led by the Personal Care segment – as the company plans to launch new innovations that could boost its market share in the global baby and feminine care market going forward. Kimberly-Clark accounts for 14% of the U.S. market in the personal care segment (as of 2016). The company gets a lot of value from its prime positioning in the baby care market with its biggest franchise, Huggies. The company’s Personal Care segment has been successful in maintaining its market share in Eastern Europe and China, primarily as a result of price cuts. However, the segment has seen some recent volume declines in North America.
Developing Markets: Strong Growth Driver
In fiscal 2017, Kimberly-Clark’s organic sales in developing markets grew 3% year-over-year (y-o-y), compared to a 2% y-o-y decline in the North American market. The company is looking at developing and emerging markets to drive growth, as it struggles to grow revenues in the North American market. The company has strong growth prospects in markets such as China and Brazil, primarily due to low penetration of its category products in these regions, and the likely increase in the consumption of these products with economic and population growth. Accordingly, we expect developing markets to be a key driver for the company’s long-term growth.
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