Kimberly-Clark's 3 divisions are expected to bring in $18.42 billion for full-year 2019
(1) Personal Care $8.97 billion (49%)
(2) Consumer Tissue $6.03 billion (33%)
(3) KC Professional $3.43 billion (18%)
Total Revenue
TAKEAWAY
Kimberly Clark's Personal Care segment, which primarily sells baby care and feminine care products, is expected to contribute $8.97 billion to total revenue in 2019, making up 49% of KMB's total revenue estimate.The Consumer Tissue division is expected to bring in $6.03 billion in 2019, to make up 33% of the total revenue estimate.The expected $460 million of revenue growth for Kimberly-Clark between 2016 and 2020, will be driven primarily by a $320 million growth in the KC Professional segment.Kimberly Clark's total revenue has grown by around 1.5% between 2016 and 2018, and we expect a further 1% growth in revenue by 2020.Below we discuss KMB's business model, followed by sections that review past performance and 2020 expectations for KMB’s revenue, including comparisons with close competitors, Procter & Gamble and Unilever.
Kimberly-Clark's Business Model
What Do They Offer?
Kimberly-Clark is one of the world's leading producers of professional and consumer tissue, baby care non-wovens, female hygiene care, adult incontinence care, and disposable healthcare products.
Products for household use such as consumer tissue, baby diapers, and female hygiene care are sold directly and through wholesalers.
Products for away-from-home use such as professional tissue and medical disposables are sold through distributors as well as sold direct to the end consumers.
Has 3 Operating Segments-
1. Personal Care: includes Kimberly-Clark's feminine absorbent hygiene products such as sanitary pads and tampons, and baby care products such as disposable baby diapers, baby wipes, and training pants.
2. Consumer Tissue: includes Kimberly-Clark's tissue and paper products, primarily sold under the Kotex and Scott Tissue brands.
3. KC Professional: Includes revenue from Kimberly-Clark's sales to offices and workplaces, covering all their hygiene and office care needs.
What Are The Alternatives?
Consumer Tissue: Kimberly-Clark primarily competes with the likes of Procter & Gamble, SCA, and Seventh Generation Inc. in the tissue segment.
Personal Care: In this segment, KMB competes with the likes of P&G, SCA, and Georgia Pacific Corp.
What Is The Basis of Competition?
Buyers are most concerned about:
absorbent properties and comfort in the case of diapers and sanitary productspricelongevityquality of productbrand recognition
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