The net profit of Kimberly-Clark de México was lower by 32%, at 1,092 million pesos, in the first quarter of this year compared to the same period of 2021, although its sales reached an all-time high.
The station, which markets products under brands such as Pétalo and Kleenex, explained that the increase in the price of raw materials during the period put pressure on its costs.
We face a global environment of unprecedented inflation in raw material prices that continues to impact our costs. As a consequence, gross profit decreased 16% compared to the first quarter of 2021 and the margin was 31.3%”, the company pointed out in its first financial report of the year.
Despite this, he indicated that his sales closed with a historical maximum of 12,600 million pesos, which is equivalent to a growth of 4% with respect to the results of the first quarter of 2021.
This result was driven by a 7% increase in price and mix, but volume decreased 3 percent.
Given the very challenging cost environment”, Kimberly-Clark’s operating cash flow was also negative in the first three months of this 2021. EBITDA contracted 22%, resulting in 2,515 million pesos.
In the report, available on the Mexican Stock Exchange (BMV), the issuer explained that all the raw materials on which its production depends became more expensive compared to last year.
Virgin fibers increased by an average of 30%, imported fibers for recycling by close to 70%, while domestic fibers for recycling and fluff averaged increases of close to 15 percent.
Meanwhile, supplies for the manufacture of personal care products also rose. Super absorbent materials are up 50% and polypropylene resins are up nearly 10%.