The pandemic has caused disruptions in businesses and hampered their growth during the three quarters. Meanwhile, Kimberly-Clark Corp. (NYSE: NASDAQ:KMB) remained undamaged with its strategic operations. It maintained the impressive trend of its financial health even at times like this. As everything tries to go back to normal, the company may seize the opportunity to stimulate its growth and even raise the dividends. Hence, this may help slowly reverse the downward movement of the stock price as it turns out undervalued as estimated.
The Financials of the Company
Operating Revenue and Operating Costs
One may observe a managed yet slow growth in Kimberly-Clark’s operating revenue for the last 10 years. From $19.12 billion in 2009, the company had an average annual growth of less than 1% that resulted in a lower revenue of $18.45 billion in 2019. But one must not stop there. Aside from checking other accounts in the Income Statement like the costs and earnings, one must still determine the factors that slowed down its revenue growth.
From 2009 to 2011, the revenue quickly increased to $20.84 billion. But for the next three years, it slowed down and shifted to a decreasing pattern. In 2014, the company had a spin-off of its health care system and restructuring that decreased the revenue. In 2015, the impact of ForEx and the problems it faced in its business in Venezuela further affected its operations. At the end of 2015, it declined by more than $1 billion from $19.72 billion to $18.59 billion.
In 2016, the restructuring ended but still reflected its impact. Also, it decided not to include the results of its operations in Venezuela that the government took over a few months later. Despite the continuous decrease, the value remained above $18 billion. In 2017, the company fully adjusted to its restructuring efforts. The revenue had a $150-million increase to $18.35
