Name: Kimberly-Clark Corp. (NYSE:KMB) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Kimberly-Clark Corp., consolidated income statement

US$ in millions

12 months ended:	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016
Net sales	19,140)	18,450)	18,486)	18,259)	18,202)
Cost of products sold	(12,318)	(12,415)	(12,889)	(11,706)	(11,551)
Gross profit	6,822)	6,035)	5,597)	6,553)	6,651)
Marketing, research and general expenses	(3,632)	(3,254)	(3,367)	(3,227)	(3,326)
Other income and (expense), net	54)	210)	(1)	(27)	(8)
Operating profit	3,244)	2,991)	2,229)	3,299)	3,317)
Nonoperating expense	(70)	(91)	(163)	—)	—)
Interest income	8)	11)	10)	10)	11)
Interest expense	(252)	(261)	(263)	(318)	(319)
Income before income taxes and equity interests	2,930)	2,650)	1,813)	2,991)	3,009)
Provision for income taxes	(676)	(576)	(471)	(776)	(922)
Income before equity interests	2,254)	2,074)	1,342)	2,215)	2,087)
Share of net income of equity companies	142)	123)	103)	104)	132)
Net income	2,396)	2,197)	1,445)	2,319)	2,219)
Net income attributable to noncontrolling interests	(44)	(40)	(35)	(41)	(53)
Net income attributable to Kimberly-Clark Corporation	2,352)	2,157)	1,410)	2,278)	2,166)

Based on: 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).

Financial performance between 2016 and 2020 is characterized by steady revenue growth and a significant volatility event in 2018, followed by a robust recovery in profitability by the end of the period.

Revenue and Gross Profitability: Net sales exhibited a consistent upward trajectory, increasing from 18,202 million USD in 2016 to 19,140 million USD in 2020. However, gross profit did not follow a linear path; a notable contraction occurred in 2018, where gross profit fell to 5,597 million USD due to a spike in the cost of products sold. A recovery phase followed, with gross profit reaching a five-year peak of 6,822 million USD in 2020, indicating improved cost management or pricing power in the latter years.
Operating Efficiency: Operating profit mirrored the volatility of the gross profit margin, experiencing a sharp decline in 2018 to 2,229 million USD from 3,299 million USD in 2017. Marketing, research, and general expenses remained relatively stable throughout the period, fluctuating between 3,227 million USD and 3,632 million USD. The return to 3,244 million USD in operating profit by 2020 suggests that the factors impacting 2018 were transitory rather than systemic.
Financial Costs and Non-Operating Items: A positive trend is observed in interest expenses, which declined steadily from 319 million USD in 2016 to 252 million USD in 2020. This reduction in financing costs contributed to the overall stabilization of the bottom line. Other income and expenses shifted from net losses in 2016 and 2017 to net gains in 2019 and 2020, providing a modest boost to income before taxes.
Net Income Trends: Net income attributable to the corporation showed a V-shaped recovery pattern. After peaking at 2,278 million USD in 2017, it dropped to a period low of 1,410 million USD in 2018. By 2020, net income reached its highest level in the analyzed period at 2,352 million USD. The share of net income from equity companies remained stable, contributing between 103 million USD and 142 million USD annually, which provided a consistent supplement to the core earnings.

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