Kimberly-Clark Corporation is taking targeted pricing actions alongside a broader set of measures to manage rising input costs, with management estimating gross input cost headwinds of approximately $150 million for the second half of the year. That follows approximately $50 million of inflationary headwinds in the second quarter, primarily related to higher oil-linked input costs and some impacts from the L.A. distribution center. Management said the magnitude of the pricing actions is expected to be in the low single digits, primarily in North America, while pricing actions globally will vary by geography. The pricing actions are already in the marketplace and form part of the company's effort to maintain PNOC discipline over time, with Kimberly-Clark continuing to follow a principle of keeping pricing net of cost neutral over time. Alongside pricing, the company is delivering its highest level of productivity to date and actively managing negotiations and contracts with vendors and suppliers, using multiple levers rather than relying solely on revenue growth management.
Kimberly-Clark CorporationKimberly-Clark plans low single-digit price hikes in North America to offset ~$150M input cost headwinds, keeping pricing net of cost neutral.
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