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Curious, the third quarter revenue of the parent company reached 5 billion! Under the inflationary pressure of the supply chain, the giants of sanitary products want to raise prices one after another?


Recently, Kimberly Clark, a global health products giant, released its financial report for the third quarter of 2021. The report shows that Kimberly Clark's revenue in the third quarter of this year was US $5 billion, a year-on-year increase of 7%; Organic sales increased by 4%. It is reported that in the case of inflation and supply chain disruption, Kimberly's commodity sales failed to meet analysts' expectations.


In terms of sales regions, Kimberly's organic sales in North America increased by 3%. Outside North America, organic sales in developing and emerging markets (D & amp; E) increased by 6%, in line with developed markets a year ago.


In terms of business departments, Kimberly's personal care business sales in the third quarter were US $2.7 billion, an increase of 14% over last year; The revenue of consumer tissue business and K-C business unit were US $1.5 billion (year-on-year - 5%) and US $800 million (year-on-year + 13%) respectively.


As the fastest growing department in the same period, the operating profit of personal care business in the third quarter reached US $496 million, a year-on-year increase of 2%. According to the financial report, the improvement of this performance was due to the growth of organic sales, cost savings and the reduction of marketing, research and general expenses. Meanwhile, the acquisition and withdrawal of Softex Indonesia and the impact of the global restructuring plan in 2018 increased sales by about 3%.



It is worth noting that due to inflationary pressure and supply chain problems, Kimberly Clark, a US multinational consumer goods giant, lowered its annual forecast.


Mike Hsu, CEO of Kimberly Clark, said in the third quarter earnings conference call: & ldquo; our earnings were negatively affected by major inflation and supply chain disruption, which made our costs exceed our original expectations. We are taking further actions, including additional pricing and strengthening cost management, to mitigate these adverse effects. & rdquo;


This is the second time this year that Kimberly Clark plans to raise product prices. In April this year, Kimberly Clark announced plans to increase the net selling price of most daily consumer goods in North America. The price increases involve Huggies diapers, Scott and Kleenex toilet paper, etc.




In fact, it is not just Kimberly's alone, but also Procter & Gamble and Unilever that have recently taken measures to raise prices to offset the surge in commodity prices caused by supply chain problems. On October 19, P & G, a global hygiene giant, said in its financial report that in the face of the current supply chain situation, in order to cope with inflation, the company will increase the prices of several product lines.


Unilever, whose brands cover many fields such as personal care and home care, disclosed in its third quarter financial report published on October 21: & ldquo; Cost inflation remains high, and the company will take appropriate pricing actions and implement a series of productivity measures to offset the increased costs& rdquo;


From the quarterly financial reports of Kimberly Clark and other companies, it can be noted that increased inflation and labor shortage reduce the profit margin, while adverse factors such as supply chain are unlikely to ease in the short term. With inflation becoming stronger, Jared Bernstein, White House economic adviser, recently admitted that inflation is likely to last longer than previously expected.


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