Kimberly-Clark De Mexico 3Q Net Profit Up 5% To MXN961 Million

Consumer products company Kimberly-Clark de Mexico (KCDMY, KIMBER.MX) said Thursday that its net profit grew 5% in the third quarter to 961 million pesos ($76.3 million) as a combination of higher volumes and higher prices led to sales gains despite continued weakness in the domestic market.

In a press release, Kimberly-Clark said sales in the July-September quarter totaled MXN6.35 billion, a 7% increase from the year-ago quarter. The company sold 3% more goods at an average price that was 4% higher than a year ago.

Costs also rose, however, leading to a smaller 1% gain in operating profit to MXN1.61 billion.

Lower financial costs helped increase net profit growth, while share buybacks in the previous year contributed to a 6% rising in earnings per share to MXN0.90.

"The trend of higher costs of raw materials and services continued during the quarter, particularly in pulp, recycled fibers and energy," said the company, which makes diapers, personal hygiene and other consumer products.

"Our internal cost containment and reduction programs, and a better exchange rate contributed to our operating profit growth, but were not sufficient to offset the negative impact in our cost structure," the company added.

-By Anthony Harrup, Dow Jones Newswires; (5255) 5980-5176, [e-mail]