Kimberly-Clark (KMB) manufactures and markets disposable consumer products. The company owns five brands that do over $1 billion per year in sales: Kleenex, Kotex, Huggies, Pull-Ups, and Scotts. The company sells its products in over 175 countries and has grown to a market cap of over $42 billion. Approximately 25% of the world’s population uses Kimberly-Clark products. When I last analyzed Kimberly-Clark, the company had just come off strong 3rd quarter earnings results that saw adjusted EPS rise 12%.

The company has increased its dividend payments for 42 consecutive years and has paid dividends for 80 consecutive years. Kimberly-Clark is the focus of Part 46 of the 54 part Dividend Aristocrats In Focus series. Kimberly-Clark’s operations are analyzed below to give a better understanding of the company.

Business Overview

Kimberly-Clark completed the spin-off of its health care division on November 1st.  The former health care division is now named Halyard Health (HYH).  Kimberly-Clark now operates in three primary segments: Personal Care, Consumer Tissue, and K-C Professional. Each segment’s percentage of total operating profit contributed through the first 9 months of fiscal 2014 is shown below to give an idea of the relative size of each segment:

The Personal Care segment is Kimberly-Clark’s largest based on both revenue and operating profits.  The segment manufactures and sells diapers and feminine care segments.  It claims 3 of the company’s 5 billion dollar brands:  Huggies, Pull-Ups, and Kotex.

The Consumer Tissue segment is Kimberly-Clark’s second largest.  It controls arguably the company’s strongest brand in Kleenex, as well as the Viva, Scott, and Cottonelle brands. The Kleenex brand name is so strong, many people refer to all tissues as Kleenex.