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Can Kimberly-Clark's Arbex JV Strengthen Global Personal Care Focus?
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Key Takeaways
KMB's International Personal Care markets delivered sequential improvements and double-digit gains.
KMB gained 390 basis points of diaper share in Indonesia and 70 basis points in Brazil.
KMB's Arbex venture with Suzano combines scale and tissue expertise to build a global hygiene competitor.
Kimberly-Clark Corporation (KMB - Free Report) continues to see progress in its global personal care business, with its repeatable playbook delivering sequential improvements and double-digit gains across International Personal Care markets, including India, Southeast Asia and Indonesia. The momentum is also reflected in diaper market share, with gains of 390 basis points in Indonesia and 70 basis points in Brazil. These developments reflect progress across international personal care markets and gains in diaper market share.
The formation of Arbex represents a strategic joint venture designed to create a world-class global competitor in the hygiene and tissue business. Kimberly-Clark views the partnership as a strategic combination rather than an effort to move away from an existing problem or challenge. The venture brings together Suzano’s scale and capabilities with Kimberly-Clark’s commercial capabilities and knowledge of tissue making. By combining these capabilities, the partnership is intended to create a global competitor in the hygiene and tissue business.
Kimberly-Clark remains highly enthusiastic about the future of the Arbex team and the opportunities ahead for the business. The company also believes that its clear focus on global personal care should help drive execution as Arbex moves forward. The company said that this clear focus on global personal care should help drive execution. Overall, Arbex gives Kimberly-Clark additional focus, while management expects its global personal care emphasis to help drive execution. Continued progress across IPC markets and gains in diaper market share demonstrate how the playbook is translating across geographies.
The Zacks Rundown for KMB
KMB stock has lost 11.2% in the past three months compared with the industry’s decline of 1.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 13.38, lower than the industry’s average of 18.52. KMB currently carries Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KMB’s current fiscal-year earnings implies a year-over-year decline of 2.4%, and the same for next fiscal year earnings implies growth of 2.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
The Zacks Consensus Estimate for ADRNY's current fiscal-year sales and earnings implies growth of 3.9% and 4.3%, respectively, from the year-ago actuals. ADRNY reported a trailing four-quarter average earnings surprise of 5.4%.
Purple Innovation, Inc. (PRPL - Free Report) designs, manufactures, and sells sleep and other products in the United States and internationally. PRPL currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for PRPL's current fiscal-year sales and earnings implies growth of 0.4% and 20.8%, respectively, from the year-ago actuals. PRPL delivered a trailing four-quarter earnings surprise of 21.3%, on average.
Henkel AG & Co. (HENKY - Free Report) engages in the adhesive technologies and consumer brands businesses in Europe, India, the Middle East, Africa, North America, Latin America and the Asia Pacific. At present, HENKY carries a Zacks Rank of 2.
The Zacks Consensus Estimate for HENKY’s current fiscal-year sales and earnings suggests growth of 3.4% and 2.7%, respectively, from the year-ago reported figures.
View the Zacks #1 Rank List
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Can Kimberly-Clark's Arbex JV Strengthen Global Personal Care Focus?
Key Takeaways
Kimberly-Clark Corporation (KMB - Free Report) continues to see progress in its global personal care business, with its repeatable playbook delivering sequential improvements and double-digit gains across International Personal Care markets, including India, Southeast Asia and Indonesia. The momentum is also reflected in diaper market share, with gains of 390 basis points in Indonesia and 70 basis points in Brazil. These developments reflect progress across international personal care markets and gains in diaper market share.
The formation of Arbex represents a strategic joint venture designed to create a world-class global competitor in the hygiene and tissue business. Kimberly-Clark views the partnership as a strategic combination rather than an effort to move away from an existing problem or challenge. The venture brings together Suzano’s scale and capabilities with Kimberly-Clark’s commercial capabilities and knowledge of tissue making. By combining these capabilities, the partnership is intended to create a global competitor in the hygiene and tissue business.
Kimberly-Clark remains highly enthusiastic about the future of the Arbex team and the opportunities ahead for the business. The company also believes that its clear focus on global personal care should help drive execution as Arbex moves forward. The company said that this clear focus on global personal care should help drive execution. Overall, Arbex gives Kimberly-Clark additional focus, while management expects its global personal care emphasis to help drive execution. Continued progress across IPC markets and gains in diaper market share demonstrate how the playbook is translating across geographies.
The Zacks Rundown for KMB
KMB stock has lost 11.2% in the past three months compared with the industry’s decline of 1.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, KMB trades at a forward price-to-earnings ratio of 13.38, lower than the industry’s average of 18.52. KMB currently carries Zacks Rank #3 (Hold).
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KMB’s current fiscal-year earnings implies a year-over-year decline of 2.4%, and the same for next fiscal year earnings implies growth of 2.1%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Koninklijke Ahold Delhaize N.V. (ADRNY - Free Report) operates retail food stores and e-commerce in the Netherlands, the United States, and internationally. ADRNY currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for ADRNY's current fiscal-year sales and earnings implies growth of 3.9% and 4.3%, respectively, from the year-ago actuals. ADRNY reported a trailing four-quarter average earnings surprise of 5.4%.
Purple Innovation, Inc. (PRPL - Free Report) designs, manufactures, and sells sleep and other products in the United States and internationally. PRPL currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for PRPL's current fiscal-year sales and earnings implies growth of 0.4% and 20.8%, respectively, from the year-ago actuals. PRPL delivered a trailing four-quarter earnings surprise of 21.3%, on average.
Henkel AG & Co. (HENKY - Free Report) engages in the adhesive technologies and consumer brands businesses in Europe, India, the Middle East, Africa, North America, Latin America and the Asia Pacific. At present, HENKY carries a Zacks Rank of 2.
The Zacks Consensus Estimate for HENKY’s current fiscal-year sales and earnings suggests growth of 3.4% and 2.7%, respectively, from the year-ago reported figures.