Kimberly-Clark de Mexico Q4 2025 Kimberly-Clark de México SAB de CV Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Kimberly-Clark de México SAB de CV Earnings Call
Operator: Please stand by. Your meeting is about to begin. Hello and welcome, everyone, joining today's Kimberly-Clark de México Q4 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star and one on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to CEO Pablo González. Please go ahead.
Speaker #2: Please stand by . Your meeting is about to begin . Hello and welcome everyone . Joining today's Kimberly Clark , de México , fourth quarter 2020 .
Speaker #2: Earnings Conference call . At this time , all participants are in a listen only mode . Later , you will have the opportunity to ask questions during the question and answer session .
Speaker #2: To register to ask a question at any time, please press star and one on your telephone keypad. Please note, this call is being recorded.
Speaker #2: We are standing by. If you should need any assistance, it is now my pleasure to turn the meeting over to CEO Pablo Gonzalez.
Pablo González: Thanks so much. Hello, everyone. Thanks for participating on the call. We wish you and your families a terrific 2026. We'll go straight to results and then make some brief comments about the quarter and our expectations going forward. I'll pass it on to Javier.
Speaker #2: Please go ahead .
Speaker #3: Thank you so much. Hello, everyone. Thanks for participating on the call. We wish you and your families a terrific 2026.
Javier Cortés: Thank you, Pablo. Good morning, everyone. Our sales reached MXN 14.1 billion in the fourth quarter, an increase of 2.1% versus the same period of 2024. Total volume was flat, and price mix improved 2%. Growth was driven by consumer products, which expanded 5.5%, supported by healthy year-over-year growth of 1.4% and price mix of 4.1%. Export hard roll sales continued to decline as we converted more tissue toward higher-value domestic products. Sequentially, results continued to improve from Q3 to Q4 as sales increased 4.8%, with consumer products up 8.5%, primarily volume-led, reflecting strong commercial execution, the planned innovations to products, and improved market dynamics. Cost of goods sold was flat, and as a percentage of sales improved by 130 basis points. Compared to last year, virgin fibers, recycled fibers, SAM, and resins were favorable, partly offset by higher flood costs.
We'll go straight to results and then make some brief comments about the quarter and our expectations going forward. So I'll pass it on to Javier.
Q4 2025 Kimberly-Clark de México SAB de CV Earnings Call
Speaker #4: Thank you, Pablo. Good morning, everyone. Our sales reached $14.1 billion in the fourth quarter, an increase of 2.1% versus the same period of 2020.
Speaker #4: For total volume was flat and price mix improved . 2% growth was driven by consumer products , which expanded 5.5% , supported supported by healthy year over year growth of mix 1.4% and price of 4.1% .
Speaker #4: Export rose . Sales continued to decline as we converted more tissue toward higher value domestic products sequentially . Results continued to improve from Q3 to Q4 as sales increased 4.8% , with products consumer up 8.5% , primarily , volume led , reflecting strong commercial execution .
Speaker #4: The planned innovations to products and improved market dynamics, cost of goods sold was flat, and as a percentage of sales improved by 130 basis points compared to last year.
Javier Cortés: The peso remained supportive, with an average appreciation of roughly 8%. Our cost reduction program once again delivered solid results, generating approximately MXN 500 million in savings during the quarter, mostly within cost of goods sold. These efficiencies came from sourcing, materials optimization, and ongoing process improvements across our operations. As a result, gross profit increased 5.4%, and our margin reached 40.4%, reflecting both disciplined revenue management and cost tailwinds. SG&A expenses increased 0.8% year-over-year, and as a percentage of sales decreased 22 basis points as we continued to carefully prioritize brand investment and overhead efficiency. Operating profit grew 9.2%, and our operating margin expanded to 22.9%. We generated MXN 3.7 billion of EBITDA, an increase of 6%, with an EBITDA margin of 26.4%, a 140 basis point sequential improvement, and 100 basis point expansion versus the fourth quarter of 2024.
Speaker #4: Virgin fibers , recycled fibers , Sam and resins were favorable , partly offset by higher fluff costs . The peso remained supportive , with an average appreciation of roughly 8% .
Speaker #4: Our cost reduction program once again delivered solid results, generating approximately $500 million in savings during the quarter, mostly within cost of goods sold.
Speaker #4: This efficiencies came from sourcing materials , optimization and ongoing process improvements across our operations . As a result . Gross profit increased 5.4% and our margin reached 40.4% , reflecting both disciplined revenue management and cost tailwinds as expenses increased 0.8% year over year and as a percentage of sales decreased 22 basis points .
Speaker #4: As we continue to carefully, carefully prioritize brand investment and overhead efficiency, operating profit grew 9.2%, and our operating margin expanded to 22.9%.
Speaker #4: We generated $3.7 billion of EBITDA , an increase of 6% , with an with an EBITDA margin of 26.4% , a 140 basis points sequential improvement and 100 basis points expansion versus the fourth quarter of 2020 .
Javier Cortés: Financing cost was $398 million compared to $350 million last year, driven mainly by lower returns on cash balances. Net income reached $2.2 billion, with EPS of $0.73, a 23% increase year-over-year. For the full year, sales reached an all-time record of $55.4 billion, up 1.1%. EBITDA was $14.1 billion, representing 25.5% of sales, while margins declined 170 basis points due to the cost pressures we faced, particularly during the first half of the year. Net income was $7.6 billion, or 13.7% of sales. Throughout 2025, our cost reduction initiatives delivered $1.95 billion in savings, driven by sourcing, operating efficiencies, and product design optimization. We invested $1.8 billion in CapEx, consistent with our plan, focused on technology upgrades, cost reductions, efficiencies, and strategic capacity additions. We also repaid $3.7 billion of debt, paid $6.2 billion in dividends, and repurchased nearly 43 million shares, equivalent to 1.4% of shares outstanding.
Speaker #4: For financing , costs was $398 million , compared to 350 million last year , driven mainly by lower returns on cash balances . Net income reached $2.2 billion , with EPs of $0.73 , a 23% increase year over year .
Speaker #4: For the full year , sorry , sales reached an all time record of $55.4 billion , up 1.1% . EBITDA was $14.1 billion , representing 25.5% of sales , while margins declined 170 basis points due to the cost pressures we faced , particularly during the first half of the year .
Speaker #4: Net income was $7.6 billion , or 13.7% of sales . Throughout 2025 , our cost reduction initiatives delivered $1.95 billion in savings , driven by sourcing , operating efficiencies and product design optimization .
Speaker #4: We invested $1.8 billion in CapEx, consistent with our plan and focused on technology upgrades, cost reductions, efficiencies, and strategic capacity additions.
Speaker #4: We also repaid $3.7 billion of debt, paid $6.2 billion in dividends, and repurchased nearly 43 million shares, equivalent to 1.4% of shares outstanding.
Javier Cortés: We closed the year with a strong and healthy balance sheet. Total cash stood at MXN 9.7 billion. Net debt to EBITDA was 1.0 times, and EBITDA to net interest coverage remained very solid at 10 times. Thank you very much. I return it to Pablo.
Speaker #4: We closed the year with a strong and healthy balance sheet. Total cash stood at $9.7 billion, net debt to EBITDA was 1.0 times, and net interest coverage remained very solid at ten times.
Pablo González: Thanks. So we continue to operate against a soft consumer backdrop. However, we've delivered year-over-year growth, strong margins, and a meaningful sequential improvement. Consumer products' performance was notably stronger, supported by innovations and commercial initiatives. Overall, consumer confidence remains subdued, and private consumption growth has moderated. Within retail, value formats and private label continue to gain share, as shoppers seek savings, while e-commerce growth remains robust. Against this backdrop, our categories continue to show resilience, and our brands have benefited from our strong innovations, price and mix discipline, and market execution. As we get into 2026, we have solid plans to strengthen our core businesses, accelerate growth in our diamond categories, expand into adjacent, such as new categories, most notably in pet food, as well as participate in markets we have traditionally not emphasized in the past, such as private label.
Speaker #4: Thank you very much. I return it to Paulo.
Speaker #3: Thanks . So we continue to operate against a soft consumer backdrop . However , we delivered year over year growth strong margins and a meaningful sequential improvement .
Speaker #3: Consumer products performance was notably stronger, supported by innovations and commercial initiatives. Overall, consumer confidence remains subdued and private consumption growth has moderated, with retail value formats and private label continuing to gain share as shoppers.
Speaker #3: Seeks savings , while e-commerce growth remains robust . Against this backdrop , our categories continue to show resilience and our brands have benefited from our strong innovations , and mix price , discipline and market execution .
Speaker #3: As we get into 2026 , we plans have solid to strengthen our core businesses , accelerate growth in our diamond categories , expanded to adjacencies categories , most notably in Petfood , as well as participate in markets .
Pablo González: On costs, we're seeing the benefits of lower pulp, recycled fibers, resins, and superabsorbent materials, which together with a stronger peso will provide important tailwinds as we move into 2026. Cost reduction program remains a key structural lever and will stay aggressive in sourcing, product design, and process efficiencies. A few additional comments before we open it up for Q&A. First, Kimberly-Clark Corporation, our strategic partner, announced in November its agreement to acquire Kenvue. This combination will create a leading global health and wellness company with a complementary consumer portfolio and expanded capabilities. As the transaction progresses towards closing, expected in the second half of 2026, we will evaluate potential strategic implications for Kimberly-Clark de México, including the possibility of integrating Kenvue's operations in Mexico. Our focus will remain on achieving operational excellence and capturing value-accretive growth opportunities for the business.
Speaker #3: We have traditionally not emphasized in the past , such as private label on costs . We are seeing the benefits of lower pulp , recycled fibers , resins and super absorbent materials which , together with stronger peso , will provide important tailwinds as we move into 2026 , cost reduction program , remains a key structural lever .
Speaker #3: We will stay aggressive on sourcing, product design, and process efficiencies. A few additional comments before we open it up for Q&A.
Speaker #3: First, Kimberly-Clark Corporation, our partner, announced in November its strategic agreement to acquire Kenvue. This combination will create a leading global health and wellness company with a complementary, expanded consumer portfolio and capabilities as the transaction progresses.
Speaker #3: closing As , expected in the second half of 2026 , we evaluate will potential strategic implications for Kimberly-Clark , de Mexico , including the possibility of integrating canvas operations in Mexico .
Speaker #3: Our focus will remain on achieving operational excellence and capturing value-accretive growth for the opportunities business. Additionally, we will hold our annual shareholders' meeting on February 26th.
Pablo González: Additionally, we will hold our annual shareholders meeting on 26 February, where the board will propose a dividend increase in the high single digits, reflecting our solid cash generation and confidence in future performance. We will also propose a share repurchase program, which will remain significant and aligned with our commitment to disciplined capital allocation. One final note. Starting with Q1 results, we will be releasing them to the public on the third Tuesday of the month after the end of a quarter, as soon as the board approves them at the regularly scheduled meeting late on the same day. We will hold our call early on Wednesday mornings. In summary, looking ahead to 2023, we face 2026, we face external risks, including ongoing tariff uncertainty and a slower domestic demand backdrop tied to softer formal employment, and slower remittances. However, we are optimistic.
Speaker #3: The board will propose a dividend increase in the high single digits, reflecting our solid cash generation and confidence in future performance.
Speaker #3: We will also propose a share repurchase program, which will remain significant and aligned with our commitment to disciplined capital allocation. One final note: starting with the first quarter results, we will be releasing them to the public on the third Tuesday of the month after the end of the quarter.
Speaker #3: As soon as the board approves them at the regularly scheduled meeting late on the same day, we will hold the call early on Wednesday mornings.
Speaker #3: In summary , looking ahead to we face 2023 , 2026 . face external We risks , including ongoing tariff uncertainty , and a slower domestic demand backdrop tied to softer formal employer employment and slower remittances .
Pablo González: We are entering 2026 with better momentum than 2025, and we have mitigating factors to those risks, including our leading positions in essential categories, portfolio initiatives focused on value and affordability, continued excellent execution with customers, and, of course, a robust balance sheet. With that, let me turn it over to questions.
Speaker #3: However , we are optimistic we are entering 2026 with better momentum than 2025 and we have mitigating factors to those risks , including our leading positions in essential categories , portfolio initiatives focused on value and affordability continued excellent execution with customers and of course , a robust balance sheet .
Operator: Thank you. And if you would like to ask a question, please press star and one on your keypad. To leave the queue at any time, press star two. Once again, that is star and one to ask a question. Our first question comes from Alejandro Fuchs with Itaú. Please go ahead. Your line is open.
Speaker #3: With that, let me turn it over to questions.
Speaker #2: Thank you. And if you would like to ask a question, please press star and one on your keypad. To leave the queue at any time, please press star and two.
Speaker #2: Press star two once again, that is, star and one, to ask a question. Our first question comes from Alejandro Fuchs with Itaú.
Javier Cortés: Thank you, Operator. Hola, Pablo. Javier, thank you for the time for questions and congratulations on the results. I have two very quick ones first for Pablo. I was wondering if Pablo, if you could comment on the expectations for this year, maybe on competitive environment, what you're expecting, and maybe if you can elaborate a little bit more into going into private label, how relevant do you think this will be for the business in the medium to longer term? And then the second one, very quickly to Javier, was wondering, Javier, if you could give us some color on the tax rate during the quarter. I think it was quite low. So maybe you could explain a little bit more what was the case. That would be very helpful. Thank you.
Speaker #2: Please go ahead. Your line is open.
Speaker #5: Thank you . Operator . Hola , thank you for the time , for questions and congratulations on the results . I have two very quick ones .
Speaker #5: First , for wondering if you could comment on the expectations for Pablo , this year . Maybe I was on competitive environment . What you're expecting , and maybe if you can elaborate a little bit more into going into private label , how relevant do you think this will be for the business in the medium to longer term ?
Speaker #5: And then the second one, very quickly to Xavier, was wondering if you could give us some color, tax, on the rate during the quarter.
Speaker #5: I think it was quite low. Maybe you could explain a little bit more. What was the case? That would be very helpful.
Pablo González: Claro, thanks, Alejandro. Thanks for being on the call. Yeah, first, on the competitive environment, I mean, we faced a pretty competitive environment during 2025, again, given that the economy is not growing much and consumption is subdued. I don't think it was more aggressive than in some years past, but it certainly was, I would say, maybe a tiny bit more aggressive. We expect that to continue this year. I mean, we expect the economy to grow at a higher rate, not what it should be growing, but certainly at a higher rate. So we expect categories to expand a little bit, but competitors to be aggressive to try and gain share and grow at a faster clip than categories. So nothing that we haven't seen in the past. This is the nature of our categories.
Speaker #5: Thank you .
Speaker #3: Claro . Thanks , Alejandro . Thanks for being on the call . Yeah . First on the competitive environment . I mean , we we faced a pretty competitive environment during 2025 .
Speaker #3: Again, given that the economy is not growing much and consumption is subdued, I don't think it was more aggressive than in some years past.
Speaker #3: But it but it certainly was I would say a maybe a tidy , more aggressive . And we expect that to continue this year .
Speaker #3: I mean, we expect the economy to grow at a higher rate. Not what it should be, certainly, but at a higher rate.
Speaker #3: So, we expect categories to expand a little bit. But competitors to be aggressive, to try and gain share and grow at a faster clip than the category.
Pablo González: And against that backdrop, we perform very, very well, particularly in consumer products during the second half of the year. And we're entering with that momentum and with stronger shares into 2026. And we've got plans on innovation, price mix, etc., that I think will carry us forward. So we're pretty optimistic with the year as a whole. It might start a little bit slow, but I think for the year as a whole, we're pretty optimistic. On private label, as I mentioned in my opening remarks, and you guys know this, I mean, given the consumer is so stretched, private label has been gaining ground in many categories, not only ours. We've been able to fend off, on our part, the private label, given the strength of our shares, but it is no doubt increasing. It's important, and both hard discounters and overall retailers are pushing it forward.
Speaker #3: So nothing that we haven't seen in the past . This is the the nature of our categories . And against that backdrop , against we perform very , very well , particularly in consumer products .
Speaker #3: During the second half of the year, and we're entering with that momentum and with stronger shares into 2026. And we've got plans on innovation, price mix that I think, etc.
Speaker #3: will carry us forward . So we're pretty optimistic with the year as a whole . It might start a little bit slow , but I think for the for the year as a whole , pretty we're we're optimistic on private label .
Speaker #3: As I mentioned in my opening remarks and you guys know this , I mean , given the consumer is so stretched , private label has been gaining ground in many categories , not only ours , we've been able to fend off on our part .
Speaker #3: The private label, our the given strength of our shares. But it no is doubt increasing its importance, and both hard discounters and overall retailers are pushing it forward.
Pablo González: So what we decided to do is to participate more aggressively in private label, and we put together a dedicated team with dedicated assets to look into this and with some early successes. And we will be going forward competing on private label and, of course, competing overall in the market for this business. So we expect this can be a benefit for us going forward. And together with, again, strengthening our core, accelerating diamond categories, being more aggressive on the supply chain front with Kimberly-Clark Corporation, private label, I think, can add an additional opportunity for growth in Kimberly-Clark de México's case. Javier, on the tax rate? Sure. Hello, Alejandro. You are correct in pointing out that the tax rate, the effective tax rate shown on the Q4 was lower than what we traditionally have, and that, of course, also had an impact for the full year.
Speaker #3: So what we decided to do is to participate more aggressively in private label, and we put together a dedicated team with dedicated assets to look into this, and with some early successes. And we will be going forward competing on private label.
Speaker #3: And of course , competing overall in market . the For this this , for business . So we expect this can be a benefit us going for forward .
Speaker #3: And together with , again , strengthening our core , accelerating diamond categories being more aggressive on the supply chain front with Kimberly-Clark Corporation private label , can I think add an additional opportunity for growth in Mexico's case .
Speaker #3: Javier, on the tax rate, sure.
Speaker #4: Hello, Alejandro. You're correct in pointing out that the tax rate, the effective tax rate shown in the fourth quarter, was.
Speaker #4: Lower than than what we traditionally have . And that , of course , also had an impact for the full year . This comes from an accounting adjustment that primarily reflects improvements in our estimation processes and those yielded a more accurate estimate .
Pablo González: This comes from an accounting adjustment that primarily reflects improvements in our estimation processes, and those yielded a more accurate estimate. That allowed us to revert some provisions. This adjustment does not result from any change in our tax strategy, nor from the adoption of new tax positions or any aggressive tax assumptions. It will also not impact how much taxes we pay. These are mostly accounting and non-cash adjustments. Let me underline that we continue to apply a consistent, conservative, and very responsible approach to tax accounting. So, hope that helps.
Speaker #4: And that allowed us to revert some provisions. This adjustment does not result from any change in our tax strategy, nor from the adoption of new tax positions or any aggressive tax assumptions.
Speaker #4: And it will also not impact how much taxes we pay . This is this these are mostly is accounting and non-cash adjustments . And let me let me underline that we continue to apply a consistent conservative and very responsible approach to to tax accounting .
Javier Cortés: Perfect. Thank you, Pablo. Javier, super clear. Have a good weekend.
Pablo González: Gracias, Alejandro.
Speaker #4: So hope that helps .
Speaker #6: A .
Operator: Thank you. Our next question comes from Ben Theurer with Barclays. Please go ahead. Your line is open.
Speaker #5: Perfect thank you , Pablo . Super clear . Have a have a good weekend .
Speaker #3: Alejandro .
Ben Theurer: Yeah, good morning. Thank you very much as well for taking my questions. Congrats on the results. Two very quick ones. So one, obviously, 2025, you've done a relatively good job on continued cost savings initiatives, and I mean, the run rate was really good. So if you could share maybe how you think about that into 2026, also in the backdrop of the better environment that you're expecting. And then as it relates to raw materials, I mean, I would say it was mixed, but obviously FX supportive. So how do you feel about the raw material price environment? And then obviously, as FX has a tailwind, how that then ultimately comes down to profit margins into 2026? Thank you very much.
Speaker #2: Thank you. Our next question comes from Ben Sur with Barclays. Please go ahead, your line is open.
Speaker #7: Good morning. Yeah. Thank you very much for taking my questions. Congrats on the Q4 results and on the As. Just two quick ones.
Speaker #7: one obviously done 2025 you've you've a good job on continued on cost relatively So initiatives savings . And I mean the run rate was was good .
Speaker #7: Really, if you—so, how maybe could you share what you think about that into 2026? Also, in the backdrop of the better environment that you're expecting.
Speaker #7: And then as it relates to raw materials , I mean , it , I would say it was mixed , but obviously FX supportive .
Speaker #7: How do you feel about the raw material price environment? And then, obviously, with FX as a tailwind, how does that ultimately come down to profit margins into 2026?
Pablo González: Thanks, Ben. Thanks for the questions. First, on the cost reduction program, as we've said before, I mean, this is really an essential part of our culture. And that's why year-over-year, and every year, we deliver very strong results. And we are confident 2026 will not be the exception. We have identified already upwards of MXN 1 billion in savings for this year, and most likely will be close to what we achieved in 2025. And again, this is just part of our culture of continuously looking for opportunities on product design, sourcing, and materials, on efficiencies to continue to improve our execution operationally. So we expect another strong year on our cost reduction program, and we are off to a very, very good start.
Speaker #7: Thank you very much .
Speaker #3: Thanks , Ben . Thanks for the for the questions . First , on the cost reduction program , as we've said before , I mean , is really this an essential part of our culture .
Speaker #3: And that's why, year over year, we deliver very strong results. And we are confident 2026 will not be the exception. We have identified already.
Speaker #3: Upwards of $1 billion in FUR savings this year. And most likely, we'll be close to what we achieved in 2025. On a—
Speaker #3: And again, this is just part of our culture of continuously looking for opportunities in product design and sourcing, and materials and efficiencies, to continue to improve our execution operationally.
Pablo González: When it comes to raw material price environment, I mean, we're entering 2026 in a very different position as most of our raw materials have come down, and we don't necessarily expect them to continue to go down throughout the year, but certainly they will compare very, very favorably, at least through the first half of the year and maybe through the whole year. I mean, it's hard to tell. These things can. They're very volatile and they can change, but the scenario we're looking at right now is pretty favorable to start the year together with the exchange rate. So we do expect, as you could see in Q4, that to trickle down to our margins on the bottom line.
Speaker #3: So we expect another strong year on our cost reduction program. And we are off to a very, very good start when it comes to the raw material price environment.
Speaker #3: I mean , we're entering 2026 in a very different position as most of our raw materials are have come down and we don't necessarily expect them to continue to to go down throughout the the year .
Speaker #3: But certainly they will compare very , very favorably , at least through the first half of the year . And maybe through through the whole year .
Speaker #3: I mean , it's hard to tell , you know , these things can can they're very volatile and they can change . But the scenario we're looking at right now is pretty favorable to start the year together with the the exchange rate .
Speaker #3: So we do expect, as you could see in the fourth quarter, that to trickle down to our margins on the bottom line, okay.
Ben Theurer: Perfect. Thank you very much.
Pablo González: Thank you, Ben.
Operator: Thank you. We will move next with Antonio Hernández with Actinver. Please go ahead. Your line is open.
Speaker #7: Perfect. Thank you very much.
Speaker #3: Thank you Ben .
Speaker #2: We thank you. We will move next to Antonio Hernandez with Activewear. Please go ahead. Your line is open.
Javier Cortés: Hi, good morning. Congrats on the results. Just wanted to check what's the current standpoint on the NUPEC partnership. At what stage are you currently in terms of operations, distribution, and sales? Thanks.
Speaker #8: Hi . Good morning . Congrats on your results . Together to to check what's the current standpoint on the new tech . tech New partnership .
Speaker #8: At what stage are you currently in terms of in terms of operations , distribution and Thanks sales ? .
Pablo González: Sure. Thanks, Antonio. As you know, we entered the pet food business in Q2 of last year and really have been working on ramping that up over the last half of last year, and that will continue to be our priority this year. We continue to gain space at the shelf as consumers have reacted very, very positively to the products, I would say, particularly to the premium offering, so Prime Care. And as that has happened, of course, retailers have become more and more interested in giving us more space, putting the brand out there, and that is allowing us to increase our penetration. And that will be our main focus still on 2026, as we said from the very beginning. This is a category that will contribute to our results in the medium term.
Speaker #3: Sure . Thanks , Antonio . We as you know , we entered the pet food business in the second quarter of last year and really have been working on ramping that up over the last half of of last year .
Speaker #3: And that continue to be will our priority this year . We continue to gain space at shelf as consumers have reacted very , very possibly positively to the products .
Speaker #3: I would say particularly with regard to the premium offering, so Prime Care. And as that has happened, of course, retailers have become more and more interested in giving us more space, putting the brand out there.
Speaker #3: And that is allowing us to increase our penetration . And that'll be our our main focus still on 2026 , as we said , from the very beginning , this is a category that will contribute to our results in the medium term .
Pablo González: It won't be immediate, but I think we continue to make very good strides, and we believe 2026 will be a breakout year for us in that sense. In the coming years, it should be a category that delivers more in terms of both top line and bottom line for Kimberly-Clark de México.
Speaker #3: It won't be immediate, but I think we continue to make very good strides, and we believe 2026 will be a breakout year for us.
Speaker #3: That sense. And in the coming years, it should be a category that delivers more in terms of both top line and bottom line.
Ben Theurer: Okay. Thanks for the call.
Pablo González: Thank you, Antonio.
Speaker #3: For Kimberly-Clark to Mexico .
Operator: Thank you. We will move next with Renata Cabral with Citibank. Please go ahead. Your line is open.
Speaker #8: Okay, thanks for the call.
Speaker #3: Thank you . Antonio .
Speaker #2: Thank you. Moving on, next we have Renata Cabral with Citibank. Please go ahead. Your line is open.
Renata Cabral: Hi, good morning. Thank you so much for taking my question. I have one that is a follow-up about the consumer segment that you just commented. Just would like to ask if you can provide some color in terms of price mix for this quarter. And since last quarter, I think it's performing really well, and you already commented something about why this is going well. And my second question is if you can comment something about dividend and buybacks for 2026. Thank you.
Speaker #9: I good morning . Thank you so much for for taking my questions . I , I have one that is a follow up about the the consumer segment that you just comment .
Speaker #9: Just would like to ask if you can provide some color in terms of price mix for this quarter. And since the quarter last, I think it's performing really well.
Speaker #9: you are And had commented on things about why this is going well . And my second question is , if you can comment something about dividends and buybacks for 2026 .
Javier Cortés: Dividends and buybacks.
Pablo González: Sure. First, on the price mix, Renata. I mean, as we mentioned, consumer products overall grew 5% for the quarter. Volume was a little bit over 1%, and price mix was the difference, 4%. And when you look at price and mix, if you break it down, it was pretty much even. 2.1% price was up, and mix was up 2%. And again, this is not only a testament to the discipline on our pricing, but also on our good commercial execution and the effort we've placed on improving our mix in all of our categories and driving consumers up to the higher tiers. And we've been very successful, for example, in doing that on bathroom tissue as we move users up to Cottonelle. So even in a very, I would say, subdued consumer environment, we've shown that we can bring mix and price to the table.
Speaker #9: Thank you .
Speaker #4: Dividends and buybacks .
Speaker #3: Sure . First , on the on the price mix , Renata , I mean , as we mentioned , consumer products overall grew 5% for the for the quarter volume was a little bit over 1% .
Speaker #3: And price mix was the difference for 4% , that when you look at price and mix , if you break it down , it was pretty much even 2.1% price was up and mix was up 2% .
Speaker #3: And again, this is not only a testament to the discipline on our pricing, but also to our good commercial execution, and the effort we've placed on improving our mix in all of our categories and driving consumers up to the higher tiers.
Speaker #3: And we've been very successful . For example , in doing that on bathroom tissue , as we move users up to . Cottonelle .
Speaker #3: even So in a very say subdued I would consumer environment , we've we've shown that we can bring mix and price to the table .
Pablo González: So those two components together with gaining a little bit of volume, that's what really has delivered a very strong showing for consumer products in Q4 and also Q3. So we'll continue to work on that, to think about where we see pricing opportunities, continue to push for a stronger and better mix, and of course, continue to look for ways to grow the categories and volume. So it's really the combination of the three that allowed us to post these results, and that's the objective for 2026, to continue to move on all those three fronts. When it comes to dividends, as we mentioned, we will have our shareholder meeting late in February, and we will be discussing with the board on 10 February the dividend that we want to propose and the repurchase program that we want to go forward with.
Speaker #3: So those two components, together with gaining a little bit of volume, that's what really has delivered a very strong showing in consumer for products in the fourth quarter.
Speaker #3: And also third quarter. So, continue, we'll work on that too, to think about where we see pricing opportunities, and continue to push for a stronger and better mix.
Speaker #3: And of course , continue to look for ways to grow the categories and volumes . So it's really , really the combination of the three that allowed us to to post this , this results .
Speaker #3: And that that's . The objective for 2026 is to continue to move on . All those three fronts when it comes to dividends , as we as we mentioned , we will have our shareholder meeting late in February and we will be discussing with the board on February 10th , the dividend want to propose and the repurchase program we want that to go forward with .
Pablo González: But we know we'll be proposing a dividend increase in the high single digits. And again, this reflects our solid cash generation and confidence in future performance. So it'll be another year where we provide this high single-digit dividend increase into 2026.
Speaker #3: But we are we will we know we'll be proposing a dividend increase in the high single digits . And again , this reflects our solid cash generation and confidence in future performance .
Speaker #3: So, it’ll be another year where we provide this high single-digit dividend increase into 2026.
Javier Cortés: We will also be proposing a share buyback program, which will continue to be significant.
Speaker #4: And we will and we will also be a proposing share buyback program which is which which will continue to be significant .
Renata Cabral: That's great. Thank you so much for the call.
Pablo González: Thank you, Renata.
Operator: Thank you. We will move next with Fernando Méndez with JPMorgan. Please go ahead. Your line is open.
Speaker #9: That's great. Thank you so much for the call.
Speaker #3: Thank you . Renata .
Speaker #2: Thank you . We will move next with Fernando Mendes , with JP Morgan . Please go ahead . Your line is open .
Fernando Méndez: Hello, guys. Thank you very much for taking my question. I have two. First, on your short-term and long-term thoughts about the degree of cannibalization between private label and your own branded portfolio. Where do you see it now and long-term? Is there some, let's say, mindset around what degree of cannibalization this can make to your long-term volumes in your core branded brands? And secondly, if you could share more thoughts around what the Kenvue potential acquisition in México could mean in terms of incremental revenue, CapEx, returns. That's it. Thank you.
Speaker #10: guys . Hello , Thank you very much for taking my question . I have two first on your short term and long term thoughts about the degree of cannibalization between private label own and your branded portfolio .
Speaker #10: Where do you see it now and long term ? Is there some some , let's say , mindset around what degree of cannibalization this can make to your long term volumes in your core branded brands ?
Speaker #10: And secondly, if you could share more thoughts around what the Keen View potential acquisition in Mexico could mean in terms of incremental revenue and CapEx returns.
Pablo González: Thank you, Fernando. Thanks for the question. First, on cannibalization. Look, with our strategy of multi-tier, multi-channel, multi-brand, in our categories, our brands have held up steady very, very nicely. I mean, our shares are very strong in many categories growing, even though private label in the category is growing. So in many, many instances, we're the number one player with very strong shares, and then private label is now the second player in those categories. So we will continue to focus on our brands, and I want to be very, very clear about that. Our brands are our priority. We're a branded consumer products company. But given the opportunity for growth in private label and the fact that we believe we could be good partners with some of our clients in strategic areas, we want to participate.
Speaker #10: That's it. Thank you.
Speaker #3: Thank you , and thanks for the for the questions . First , on cannibalization , look , you know , with our of strategy multi-tier multi-channel , multi-brand in our categories , our brands have held up steady , very , very nicely .
Speaker #3: I mean , our shares are very strong in many categories . Growing even though private label and the category is growing . So in many , many instances we're the number one player with very strong shares .
Speaker #3: And then private label is now the second player in those categories. So we will continue to focus on our brands.
Speaker #3: And I very , want to be very clear about that . Our , our brands are priority . We're branded consumer products company .
Speaker #3: But given the opportunity for growth in private label, and the fact that we believe we could be good partners with some of our clients in strategic areas, we want to.
Pablo González: But our, again, multi-tier innovation program, multi-channel, multi-brand continue to be the priority. And as it's held up very strongly till this point, we expect it to continue to hold on very strongly going forward. We just see an added opportunity for growth if we can participate in private labels. And as we've started to do this, we've seen some early success. So we'll see what it means going forward. But I can't stress enough that our main priority is our brands, innovation behind our brands, and bringing to consumers the best products at the best cost in every single tier, in every single channel, with the best brands, which and preferred brands, which are ours. On the Kenvue issue, and thanks for asking that question. As I mentioned, we've just started conversations with our partners, with our strategic partner.
Speaker #3: We want to participate and put our weight behind, again, a multi-tier innovation program — multi-channel, multi-brand will be the priority. And as it's held up very strongly to this point, we expect it to continue to hold on strongly going forward.
Speaker #3: We just see an added opportunity for growth . If we can participate in private labels and as we've started to do this , we've seen we've seen some early success .
Speaker #3: So we'll see what it means going forward. But I can't stress enough that our main priority is our brands, innovation behind our brands, and bringing to consumers the best products at the best cost in every single tier, in every single channel.
Speaker #3: With the best brands , which and preferred brands which are ours on the can view issue . And thanks for for asking that question .
Pablo González: These conversations will evolve here through end of January, February, March. I'm going to say by April, we should have a much clearer understanding of where we stand, what the Kenvue business in Mexico would mean for Kimberly-Clark de México, and whether we can come to an agreement with our strategic partner as to how to move forward. We'll have more information, certainly, in our conference call when we report first quarter results in April. Let me just say this. Our understanding is that on the top line, Kenvue de México is about roughly $200 million in sales company. It's about a tenth of where we stand. Not huge, but also not insignificant. It's a nice size, and it would be a transaction that would add quite a few categories that we're interested in in the health and wellness.
Speaker #3: As I mentioned , we've we've just started conversations with our partners , with our strategic partner . And this conversations will evolve here through end of January , February , March by I'm say going to by April , we should have a much clearer understanding of where we stand , what the can view business in Mexico would mean for Kimberly-Clark , the Mexico and and whether we we can come to an agreement with our strategic partner as to how to move forward .
Speaker #3: So, we'll have more information—certainly in our conference call when we report first quarter results in April. But let me just say this.
Speaker #3: Our understanding is that, on the top line, you can view Mexico as about a roughly $300 million in sales company. So it's about a tenth of where we stand.
Speaker #3: So not huge , but also not insignificant . It's a nice size and it would be a a transaction that would add quite a few categories that we're interested in , in the health and wellness .
Pablo González: And as we've always said, categories that have great growth potential, categories where we see we can add value given the way we operate, innovations, brands, channels, tiers, etc., categories where we think we can add value not only to consumers, but also to clients, and that in the medium term would be a contributor to our, of course, top line, but also bottom line results and margins. So early, again, we've just started the conversations, but it's a good opportunity for us. Again, not a huge one, but an opportunity that opens very nice windows of growth going forward that would add to our core diamond categories, new categories where we've entered like pet supply chain integration with Kimberly-Clark Corporation, and if this happens, then Kenvue categories.
Speaker #3: And as we've always said , categories that have great growth potential , categories where we see we can add value given the way we operate , innovations , brands , channels , tiers , etc.
Speaker #3: it categories where we think we can add value not only to consumers but also to clients , and that in the medium term would be accretive to our , of course , top line , but also bottom line results .
Speaker #3: And margins . So early again , we've just started the the conversations , but it's a it's a good opportunity for us . Again , not a huge one but an opportunity that opens very nice windows of growth going forward .
Speaker #3: That would add to our core diamond categories, new categories we've entered like pet supply chain integration with Kimberly-Clark Corporation, and if this happens, then we can view categories.
Pablo González: So the whole scenario, I think, paints a very good picture of the possibilities of growth for Kimberly-Clark de México going forward.
Speaker #3: So, the whole scenario, I think, paints a very good picture of the possibilities of growth for Kimberly-Clark to Mexico going forward.
Fernando Méndez: Excellent. Thank you so much, Pablo, Javier.
Pablo González: Thank you.
Operator: Thank you. Our next question comes from Bob Ford with Bank of America. Please go ahead. Your line is open.
Speaker #10: Much, excellent. Pablo, thank you so.
Speaker #4: Thank you . Franklin .
Speaker #2: Thank you. Our next question comes from Bob Ford with Bank of America. Please go ahead, your line is open.
Bob Ford: Thank you so much. Good morning, Pablo, Javier, Salvador, please sit. Congrats on the results. Pablo, given the concerns around private label, could you maybe provide some examples of innovations across major categories and price tiers and maybe touch on some of the materials innovations, right? We've gone through this pretty big technology cycle, and I'm just curious if there are any things that have been patented or maybe a product cycle that you feel really comfortable that you can maintain leadership in for an extended period of time.
Speaker #11: Thank you so much . Good morning . Pablo . Salvador Javier . And congrats on the results . Pablo , given the concerns around private label , could you maybe provide some examples of innovations across major categories and price tiers and maybe touch on some of the materials innovations ?
Speaker #11: Right. We're going through this pretty big technology cycle, and I'm just curious if there are any things that have been patented, or maybe a product you feel, within this cycle, that you're really comfortable you can maintain leadership in for an extended period of time.
Pablo González: Yeah. Thanks, Bob. Thanks for the question. You know these are all very, very dynamic categories, and I can talk about a few of the things we did this past year. I wouldn't want to get ahead of myself and talk about 2026, but I'll give you some color on where we stand. But in 2025, for example, in bathroom tissue, we introduced new products in a whole range of products. And particularly, we were very aggressive in bringing new technologies into the premium category with Cottonelle with great, great results. I mean, our sales in Cottonelle are growing double digits and continue to do so very strongly. When you look at diapers, we also brought even a tier 7 diaper to continue to premiumize the category with softness that is unparalleled in the market and, of course, the absorbency that consumers come to expect from Huggies.
Speaker #3: Yeah . Thanks , Bob . Thanks for the for the question . You know , you know , this these are all very , very dynamic categories .
Speaker #3: And I can talk a bit about a few of the things we did this past year. I wouldn't want to get ahead of myself and talk about 2026.
Speaker #3: But I'll give you some color on where we stand . But in 2025 , for example , we in bathroom tissue , we introduced a new products in a whole range of products , and particularly we were very aggressive in bringing new technologies into the premium category with Cottonelle , with with great , great results .
Speaker #3: I mean, our sales in Cottonelle are growing double digits, continue to, and do so very strongly. When you look at diapers, we also brought even a tier seven diaper to continue to premium size.
Speaker #3: The category with softness that is unparalleled in the market. And of course, the absorbency that consumers have come to expect from Huggies.
Pablo González: And we've also improved even our economy tiers with now stretchable ears in diapers, which is a first, really, for the economy tiers. So again, across all of the tiers, we've improved our products in feminine care. We brought a new nocturnal pad that is considered by consumers the best product in the market by an important margin, and it's just a new platform that we're bringing to that category. And in continence, we brought new products, again, in pads and panty liners that have also preferred by consumers that also offer a new platform.
Speaker #3: We've also improved even our tiers, with economy now stretchable years in diapers, which is a first, really, for the economy tier.
Speaker #3: So again, across all of the tiers, we've improved our products in feminine care. We brought a new nocturnal pad that is considered by consumers the best product in the market by an important margin.
Speaker #3: And it's just a new platform that we're bringing to that category. And in incontinence, we brought new products again in pads and panty liners that have also been preferred by consumers, that also offer a new platform.
Pablo González: So very, very excited about what we've done and even more so with what we see going forward because I think we're going to be bringing to market some new technologies, first in market technologies and in some cases first to the world technologies that I think will continue to strengthen our platform, strengthen our brands, and strengthen our position in the market. So this is never-ending, and I'm very excited about our plans for 2026 and innovation, but already looking at 27, 28, and making sure we bring very relevant innovations to market and try and stay a step ahead of competition in every tier, in every channel going forward. So sorry, I can't say more about 26, Bob. I'll share more as we go through the year and bring those innovations to market.
Speaker #3: So very , very excited about what we what we've done . And even more so with see going what we forward . Because I think we're going to be bringing to market some new technologies first , in market technologies and in some cases , first to the world technologies that I think will continue to strengthen our platform , strengthen our brands and strengthen our position in in the market .
Speaker #3: So this is never ending . And I'm very excited about our plans for 2026 . And innovation . But already looking at 27 , 28 and making sure we bring very relevant innovations to market and try and step ahead , stay a step ahead of competition in every tier , in every channel going forward .
Speaker #3: So sorry, I can't say more about '26, but I'll, I'll, I'll share more as we go through the year and bring those innovations to market.
Pablo González: But as you can see, I'm very, very excited with what I see we can bring to the table in this year.
Bob Ford: Yeah. No, that's definitely well communicated. It's a great teaser. With respect to maybe playing a greater role in the supply chain, can you touch on what you think your competitive advantages are, right? I mean, you're clearly doing a much more sophisticated kind of tiering of products. You're doing shorter production runs. I'm familiar with some of the productivity rates of Kimberly-Clark de México versus the rest of the system. Beyond that, what should we think about when it comes to maybe selecting Mexico to play a much bigger role in the North American supply chain?
Speaker #3: But but as you can see , I'm very , very excited with what I see . We can bring to the table in this year .
Speaker #11: I know that that's definitely well communicated. It's a great teaser with respect to maybe playing a greater role in the supply chain.
Speaker #11: Can you touch on what you think your competitive advantages are, right? I mean, you're clearly doing a much more sophisticated kind of tiering of products.
Speaker #11: You're doing more shorter production runs. I'm familiar with some of the productivity rates, like those in Mexico, versus the rest of the system.
Speaker #11: Beyond that, what should we think about when it comes to maybe selecting Mexico to play a much bigger role in the North American supply chain?
Pablo González: That's a great question, Bob. Look, we are at a great point on that issue because after working with Kimberly-Clark on specific projects over the past years, we really have. It's come to the point where we're sitting down, we're taking a look at the whole supply chain. We are being completely transparent in putting the numbers out there, costs, efficiencies, logistics, etc., and identifying the biggest opportunities going forward. And as you mentioned, in many respects, and particularly when it comes to certain of the tiers in the market, we have advantages because of the way we operate, because of our costs, and because of how we know to manage different tiers, which, again, it's much easier said than done. So we're finding very interesting opportunities. But the key thing is where I started, that it's not now just, "Hey, we found this project.
Speaker #3: That's a great question about , look , the we are at a great point on , on , on that issue because after working with Kimberly-Clark on specific projects over the past years , we we really have it's come to the point where we're we're sitting down , we're taking a look at the whole supply chain .
Speaker #3: We are being completely transparent and putting the numbers out there . Costs , efficiencies , logistics , etc. and identifying the biggest opportunities going forward .
Speaker #3: And as you in many mentioned , respects and particularly when it comes to to certain of the tears in the market , we we we have advantages because of the way we operate , because of our costs and because of how we know to manage different tiers , which again , it's much easier said than done .
Speaker #3: So we are we're finding , very interesting opportunities . But but the key thing is where I started that it's not now just , hey , we found this project , how do we move forward together with it ?
Pablo González: How do we move forward together with it?" It's really a holistic look at the supply chain, figuring out where we can add value, figuring out where they can add value, and putting all of that together so that when we think of a project now, it's really for the medium and long term. It's not just a one-timer. We will still have some one-timers, but it is becoming more of a, "Hey, can we think of a certain area of the US where Mexico would be better positioned to supply products and put us in a better competitive position overall in such a market?" So we're delighted that that's where the conversations stand.
Speaker #3: really a It's holistic look at the supply chain , figuring out where we can add value , figuring out where they can add value , and putting all of that together so that when we think of a project now , it's really for the medium and long term .
Speaker #3: It's not just A11 timer . We will still have some one timers , but it is becoming more of a , hey , can we can we think of certain area of the US where a Mexico would be better ?
Speaker #3: Positioned to supply products and put us in a better competitive position overall in such a market? So we're delighted that that's where the conversations stand, and we just had our Kimberly-Clark board members attend our board meeting, and they expressed the same confidence that we will.
Pablo González: We just had our Kimberly-Clark board members attend our board meeting, and they expressed the same confidence that we're finding very interesting opportunities and that we're very confident going forward our supply chains can come together and deliver very positive improvements for both Kimberly-Clark Corporation and Kimberly-Clark de México. So again, another area where we're very excited and where we think that 2026, 2027 could be breakout years when it comes to really determining how to play together.
Speaker #3: We're finding very interesting opportunities, and we're very confident going forward. Supply chains can come together and deliver very positive improvements for both Kimberly-Clark Corporation and Kimberly-Clark de México.
Speaker #3: So, again, another area where we're very excited, and where we think that 2026, 2027 could be breakout years when it comes to really determining how to play together.
Bob Ford: Great to hear. Congratulations on all the progress. Thank you so much.
Pablo González: Thank you, Bob.
Operator: Thank you. Once again, that is star one on your telephone keypad if you would like to join the queue. We will move next with Gerónimo de Guzmán with Inca Investments. Please go ahead. Your line is open.
Speaker #11: Great to hear. Congratulations on all the progress. Thank you so much.
Speaker #3: Thank you Bob .
Speaker #2: Thank you. And once again, that is star and one on your telephone keypad if you would like to join the queue. We will move next to Jeronimo de Guzman with Inca Investments.
Gerónimo de Guzmán: Hi. Good morning. Thanks for taking my question. I had two questions. The first one was just to follow up on what you talked about with the shift. You talked a little bit more about the shift or increasing the emphasis on private label and value. And you kind of touched upon it, but I just wanted to see if we should expect any kind of impact on pricing mix or margins as a result of this.
Speaker #2: Please go ahead. Your line is open.
Speaker #12: Hi . Good morning . Thanks for taking my question . I have two questions . The first one was just a follow up on what you talked the about with shift .
Speaker #12: You talked a little bit more about the shift to or increasing the emphasis on private label and value . And I was just you kind of touched upon it , but I just wanted to see if we should expect any kind of impact on pricing mix or , or margins as a result of this .
Pablo González: No, we don't think so, Gerónimo. Certainly not in the short term. In the medium to long term, we'll see how successful we are and how strongly we can participate. But of course, and you know our culture, we're already working into, okay, if we are very successful and can participate meaningfully, how do we change our cost structure so that we continue to deliver the margins that we've targeted and that continue to be our target? So no, don't expect a change anytime soon on that target. And we will find ways to, over the medium to long term, be there within that target range.
Speaker #3: No , we don't think so . Jeronimo . Certainly not in the in the short term and in the medium to long term .
Speaker #3: We'll see how how successful we are and how many how strongly we can participate . But of course , and you know , our culture , we're already working into okay , if we are very successful in can participate meaningfully , how do we change our cost structure so that we continue to deliver the margins that that we've targeted and that continue to be our target .
Speaker #3: So no , don't don't expect a change anytime soon on that target . And we will find ways to to over medium to the long term , be there within that target range .
Gerónimo de Guzmán: Okay. Makes sense. Thank you. And then a question on just how are you thinking about pricing? Because you're mentioning the raw material environment being very supportive, but you're also talking about competition continuing to be aggressive, trying to gain shares. So yeah, kind of how are you thinking about pricing going forward?
Speaker #12: Okay . Makes sense . Thank you . And then a question on just how are you thinking about pricing . Because you're mentioning the the raw material environment being very supportive .
Speaker #12: also talking about But you're , you know , competition continuing to be aggressive , trying to gain share . So yeah , kind of how are you thinking about pricing going forward ?
Pablo González: Thanks for the question. We are looking at all of the opportunities in pricing because, notwithstanding as you say, that raw materials are a tailwind right now, and so is the exchange rate. These are very volatile, particularly both of them. We've seen in past years that things can change relatively quickly. We don't expect that to happen, but it could. So we're ready. We're ready to move on pricing. With our revenue growth management initiative, we're always looking for opportunities both on pricing and mix. I would venture to say that you will see some pricing coming to the market this year and aiding our results. Again, we'll continue to work on the mix, and you will see some mix also come into the equation and also help our results during the year.
Speaker #3: Yeah . Thanks for the for the question . We are looking at all of the opportunities on pricing because notwithstanding , as you say , that raw materials are a tailwind right now and so is the exchange rate .
Speaker #3: These are these are very volatile particularly . Well , both of them . And we've seen in past years that things can change relatively quickly .
Speaker #3: We don't expect that to But it could . happen . So we're ready . We're ready to move on . Pricing . And with our revenue growth management initiative , we're always looking for opportunities both on pricing and and mix .
Speaker #3: So, we—I would venture to say that we will, you will see some pricing coming to the market this year and aiding our results.
Speaker #3: And again, we'll continue to work on the mix. And you will see some mix also coming into the equation, and also help our results during the year.
Pablo González: No specific plans at this point, but pretty confident that both factors will be relevant and help us with the results in 2026.
Speaker #3: No specific plans at this point, but pretty confident that both factors will be relevant and help us with the results in 2026.
Gerónimo de Guzmán: Great. Thank you very much.
Pablo González: Thank you.
Operator: Thank you. Our next question comes from Juan Guzman with Scotiabank. Please go ahead. Your line is open.
Speaker #6: Great .
Speaker #12: Thank you very much .
Speaker #4: Thank you .
Speaker #2: Thank you. Our next question comes from Juan Guzman with Scotiabank. Please go ahead, your line is open.
Pablo González: Hi. Good morning, Pablo, Javier, Salvador, and all the team there. Congrats on the strong performance. Just one quick question here, as most of my questions have already been answered. Regarding away from home, given this 10% contraction that you mentioned due to channel inventory adjustments, what's your outlook for this business going forward? And even when it's early in the year, what trends have you been observing recently, and what strategies are you implementing to recover sales growth here? And that'll be it. Thank you very much. Thanks, Juan. Thanks for the question. Yeah. Not happy with the results on the professional side. Again, a combination of a softer economy and our wholesalers reducing their inventories given their concerns on the market.
Speaker #5: Hi . morning , Pablo .
Speaker #12: Javier Salvador and all the team there . on the strong one quick question Just here . As most of my questions have already been answered regarding away from home , given this 10% contraction that you mentioned due to China's inventory adjustments , what's your outlook for this business going forward ?
Speaker #12: And even when it's early in the year , what trends have you ? Have you been observing recently and what strategies are you implementing to recover sales growth here ?
Speaker #12: And that'll be it. Thank you very much.
Speaker #3: Thanks , Juan . Thanks for the thanks for the question . Yeah , not not happy with the results on the on the professional side .
Speaker #3: Again , a of combination softer economy and our . Wholesalers reducing their inventories given their concerns the market on on . Having said that again , we believe the economy will pick up a little bit this year .
Pablo González: Having said that, again, we believe the economy will pick up a little bit this year, and particularly on that side when it comes to hotels, restaurants, etc., we will definitely see the benefit of at least some of the games of the World Cup being played in Mexico. And that's just because of some of the games. I think tourism overall will be a positive for the country this year. So we expect really this to turn around in the coming; I don't know if by Q1. I think we'll do quite better, and we're already seeing much better performance in Q1 early, but we're seeing much better performance in Q1. But certainly by Q2, I think we'll see better performance.
Speaker #3: And particularly on that side when it etc. restaurants , hotels , , comes to we will definitely see the benefit of at least some of the games of the World Cup being played in Mexico , and not just because of some of the .
Speaker #3: games I think tourism overall will will be a positive for the country . This this year . we expect really this to to turn around in the coming , I don't know , by the first quarter I think we'll do quite better and we're already seeing much better performance in the first quarter early , but we're seeing much better performance in the first quarter .
Pablo González: Our strategies, same as in consumer products, we're very clear of the different areas we want to go after, and we're bringing also innovation and very interesting innovation to the different categories. We're working very, very closely with our wholesalers to go after specific accounts and to try and premiumize in different categories. So not very different in terms of the strategies that we're pursuing in consumer products. Again, we expect this to turn around certainly by Q2, and we expect the business as a whole to grow nicely throughout the rest of the year. Again, we're already starting to see early signs of that turnaround, but I think it'll take a little bit more, so maybe by Q2.
Speaker #3: But certainly by the second quarter , I think we'll we'll see better performance . And our strategies , same as in consumer products .
Speaker #3: We're very clear of the different areas we want to go after . And we're bringing also innovation and interesting , very interesting innovation to the to the different categories .
Speaker #3: And we're working very, very closely with our wholesalers to go to specific accounts and to try and premiumize in different categories. So, not very different in terms of the strategies that we're pursuing in consumer products.
Speaker #3: And again, we expect this to turn around certainly by the second quarter. And we expect the business as a whole to grow nicely throughout the rest of the year.
Speaker #3: And we're already starting to see early signs of that turnaround. But I think it'll take a little bit more, so maybe by the second quarter.
Gerónimo de Guzmán: Good stuff. Thank you very much.
Pablo González: Thank you.
Operator: Thank you. At this time, there are no further questions in queue. I will now turn the meeting back to Pablo González for closing remarks.
Speaker #12: Good stuff. Thank you very much.
Speaker #3: Thank you .
Speaker #2: Thank you. At this time, there are no further questions in the queue. I will now turn the meeting back to Pablo Gonzalez for closing remarks.
Pablo González: Well, thanks again, everyone, for participating. As you can see, very exciting things going on at Kimberly-Clark de México, and we will have more to share when we have our call on April, certainly on many of the initiatives that I just mentioned, on innovation, on Kenvue, etc. So looking forward to it and looking forward to have a very good year at Kimberly-Clark de México. And with that, again, thanks so much, and hope that you also have a terrific 2026. Thank you all.
Speaker #3: Well , thanks again everyone , for for participating . As you can see , very exciting things going on at Kimberly-Clark . The the Mexico .
Speaker #3: And we'll we will have more to share when we have our call on on April . Certainly on on many of the initiatives that I just mentioned on innovation on Kenvue , etc.
Speaker #3: looking it . . So forward to looking forward to have a very good year at Kimberly-Clark . The Mexico . And with that , again , thanks so much .
Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.
Speaker #3: And hope that you also have a terrific 2026. Thank you all.