(Reuters) – Kimberly-Clark (NYSE:) raised its full-year sales and profit forecasts on Tuesday after beating first-quarter expectations, betting on higher prices and strong demand for premium personal care and household products in North America .
Leading consumer goods companies have raised prices since the pandemic to counter rising costs that are now falling from their peaks, leading to increased competition from budget brands as shoppers seek better value.
Kimberly-Clark said it maintained sales momentum for premium products in its personal care division. Overall, the company’s sales volumes were up 1% and prices were up 4% for the quarter, with consumer trading down minimally.
The results reflect a broader market environment: Larger rival Procter & Gamble (NYSE:) recently raised its full-year profit forecast due to lower commodity costs and consumer demand for pricey Tide detergent and Dawn dishwashing soap.
Demand for home and personal care products remains strong, with consumers stocking up on surface cleaners, disinfectants and paper towels.
Kleenex’s parent company reported quarterly net sales of $5.15 billion, while analysts on average were expecting sales of $5.09 billion, according to LSEG data.
The company announced in March that it planned to reorganize its business into three divisions to streamline operations and cut costs.
Excluding miscellaneous items, Kimberly-Clark’s first-quarter earnings were $2.01 per share, compared with analysts’ expectations of $1.63 per share.
The company now expects organic sales to grow by a mid-single digit percentage in 2024, up from its previous forecast of low to mid-single digit growth.
Adjusted earnings are expected to grow at a low percentage rate in constant currency terms, down from previous high single-digit growth expectations.
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