This week I’ve logged the business outlook. This business is described below. I’ll state the business name at the end.

Fair Value price is $141 versus the current price $129.86 as of Feb 7, 2025 at 3:16 pm eastern

Industry = Consumer Goods

Products = Personal care disposable diapers, tissue, training and youth pants, swimpants, baby wipes, and feminine and incontinence care products

This business has raised its dividend consistently for around 50 years. The current dividend is attractive at  $1.22 per quarter  or $3.66 per year and is paid out per quarter cycle: Mar, June, Sept, Dec 6.  

Profit drivers

Gains are driven by personal care (more than half of sales), as volumes are propped up by an increase in adult incontinence products and greater usage of diapers in China and other emerging markets, accounting for nearly 3% average segment sales growth outlook.

This company remains resolute in its desire and ability to return cash to shareholders.

Risks/Uncertainty

2% drain this quarter due to sales volume pressured by ongoing retail inventory destocking to prepandemic levels, disruptions from Hurricane Helene, strategic reductions to its private-label business, and weaker demand in the North American professional segment. Cash-strapped consumers in the Asian and Latin American markets added to these challenges.

Achieved $135 million in savings and boosting adjusted gross margin by 90 basis points to 36.7% in the quarter. Fiscal 2024 adjusted earnings per share growth outlook at a mid- to high-teens rate

Received nearly 4% full-year organic sales growth forecast increased from from a mid-single-digit percentage rise previously.

Future Outlook

Expect a yield of over $3 billion in gross productivity gains, $200 million in selling and administrative savings, and $500 million in working capital improvements.

Company Name = Kimberly Clark

Stock Symbol = KMB