Kimberly-Clark de México (KCDMF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good day, everyone, and welcome to today's Kimberly Clark de Mexico 1Q25 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. Please note, today's call will be recorded, and I will be standing by should you need any assistance. It is now my pleasure to turn the conference over to CEO Pablo Gonzalez. Good morning, everyone. Thanks for participating on the call. We have a few things to share with you today. To begin, we'll go straight to results, and then we'll make some brief comments about the quarter and our expectations going forward, as well as describe some important initiatives on the way. With that, let me pass it on to Javier. Thank you, Pablo. Good morning, everyone. During the quarter, our sales were 13.8 billion pesos, a 0.3% increase versus the first quarter of 2024. Total volume was down 1.3% and price mix was up 1.6%. Consumer products and away from home decreased 1.4% and 4.2% respectively. Exports were up 21%. with double-digit increases in both converted product and hard-rolled sales. Cost of goods sold increased 7.4%. Against last year, SAM and resins were favorable, recycled fibers were relatively flat, while virgin fibers and fluff compared negatively. The FX was significantly higher, averaging 22% higher. Our cost reduction program once again had very good results and yielded approximately 450 million pesos of savings in the quarter. These savings are mainly at the cost of goods sold level and are generated by sourcing, materials improvement, and process efficiencies. Gross profit decreased 9.4% and margin was 38.2% for the quarter. Mix was negatively affected by lower margin hard-boiled sales. SG&A expenses were 5% lower ye...