Kimberly-Clark de Mexico 3rd Quarter Net Profit Improves on Peso Gains

MEXICO CITY--Paper goods maker Kimberly-Clark de Mexico SAB (KIMBER.MX) said Thursday that a slightly stronger Mexican peso contributed to a 36% year-on-year increase in the company's net profit during the third quarter.

The company's net profit came to 979 million pesos ($76 million) for the July-September period, compared with MXN721 million, with the peso's strengthening during the quarter helping the company's dollar-denominated debt position, whereas in the year-ago quarter the peso had depreciated sharply.

The maker of such products as Huggies diapers and Kleenex tissues said it faced better raw-materials prices in dollar terms, although the lower prices were offset by the peso still being weaker than it had been a year earlier, despite gains in the quarter. Gains from manufacturing efficiency and efforts from the company's cost-savings program helped mitigate the negative foreign-exchange impact, the company said.

Net sales grew 9% to MXN7.12 billion from MXN6.54 billion, as domestic demand in Mexico continues to expand, the company said. Kimberly-Clark de Mexico said it was able to implement price increases for its products during the quarter, and that its sales grew in almost all of its consumer-product categories.

The manufacturer said it sees accelerated growth potential for products such as wet wipes and incontinence aids.

Earnings before interest, taxes, depreciation and amortization increased 16% on the year to MXN1.9 billion from MXN1.66 billion.

Exports decreased, the company said, due to reduced demand from Kimberly-Clark Corp. (KMB) for finished products from Mexico.

Write to Amy Guthrie at [e-mail]

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