Kimberly-Clark de México, S. A. B. de C. V.

Second-quarter sales were MXN 14.4 billion, up 2.7% versus Q2 2025, with total volume up 3.1% and price/mix flat. Gross profit increased 11.9% and gross margin was 41.6%; operating profit increased 12.2% and operating margin was 23.7%; EBITDA was MXN 3.9 billion, up 9.6%, with EBITDA margin at 27.1%. Net income was MXN 2 billion, up 9%, and EPS was MXN 0.68, up 9.7%. Cost of goods sold decreased 3%, helped by about MXN 450 million of cost savings, while SG&A rose 11.5% year over year. For the balance of the year, management expects Consumer Products to continue leading, Away from Home to return to growth later in the second half, and parent roll sales to be less of a drag as the year progresses. They also said third-quarter costs will be more challenging because of geopolitical pressure on derivatives, but they still expect EBITDA margin to remain within the target range.

Pablo González said the quarter reflected strong commercial and operating execution and continued progress on the KCM plus innovation, growth and transformation strategy. He highlighted that Consumer Products is being driven by strong innovation, relatively strong market shares, and growth in diamond categories, while Away from Home is being hurt by tougher distributor behavior, aggressive competition, and weak economic conditions. His tone was constructive and confident, with repeated emphasis that the business is performing well despite subdued consumer demand and that growth should improve in the second half.

Xavier Cortés Lascurain emphasized the financial strength of the quarter: sales of MXN 14.4 billion, gross profit of MXN 3.9 billion, EBITDA of MXN 3.9 billion, net income of MXN 2 billion, and EPS of MXN 0.68. He also pointed to MXN 450 million of cost savings, mostly at the COGS line, and noted that SG&A rose 11.5% because of brand investment, compensation-related items including profit sharing, and higher use of customer technology and information platforms. On the balance sheet, he said cash was MXN 19.6 billion, net debt-to-EBITDA was 0.9x, and EBITDA-to-net-interest coverage was 9x, underscoring a “very strong and healthy” balance sheet.

Analysts focused on the gap between Consumer Products and Away from Home, the sustainability of above-range EBITDA margins, private label exposure, SG&A pressure, and the Kenvue opportunity. Management said Consumer Products is benefiting from innovation and strong shares, while Away from Home has been pressured by distributor caution, weaker consumption, and aggressive pricing, though it should return to growth by late Q3 and certainly Q4. On margins and costs, management said Q3 will be tougher because of derivative costs and geopolitical tensions, but margins should still stay within the target range and improve as raw materials normalize. On Kenvue, they said they are actively working with the partner, expect more information in Q3, and do not expect financing to be an issue with the current structure.