Analysts expect Kimberly-Clark (KMB) to report total revenues of $4.5 billion in the third quarter—down 2.1% compared to the same period last year. Analysts expect soft volumes and weak pricing to continue to hurt the company’s organic sales growth rate and overall sales. Negative currency rates pose a threat to the top line in the third quarter.
Analysts expect Procter & Gamble (PG) and Colgate-Palmolive (CL) to also report a YoY (year-over-year) decline in sales. Analysts expect Procter & Gamble’s top line to mark a low-single-digit decline in the first quarter. Colgate-Palmolive’s net sales are expected to remain low compared to the previous year, which reflects weak organic sales.
Kimberly-Clark’s top line in North America is expected to remain weak due to lower net selling prices, which reflects higher promotions to support innovation. Competition from local players in China is expected to have a negative impact on Kimberly-Clark’s pricing and sales growth rate. Negative currency rates, soft volumes in emerging markets, and a decline in the birth rate in South Korea are expected to remain a drag.
Management expects net pricing to improve in the second half of 2018, which could have a negative impact on the volumes growth.