...March 28, 2024 CHICAGO (S&P Global Ratings) March 28, 2024--Kimberly-Clark Corp. (A/Stable/A-1) announced the next step in its strategic transformation, which is intended to accelerate innovation, optimize the margin structure, and reorganize its operations into three new business segments. The company's targets include mid- to high-single-digit percent constant currency adjusted operating profit growth and at least $2 billion annual free cash flow over the long-term, which incorporate increasing organic net sales above market; realizing $3 billion of gross cost of goods sold supply chain productivity savings; and $200 million of selling, general, and administrative cost savings, while still reinvesting in the business and achieving $500 million of working capital savings. Kimberly-Clark expects to reduce its workforce by 4%-5%. The company has stated its capital priorities have not changed, including growing the dividend while maintaining its single-A credit rating. Our rating is not affected...
