MEXICO CITY--Paper goods maker Kimberly-Clark de Mexico SAB
(KIMBER.MX) said Thursday that a slightly stronger Mexican peso
contributed to a 36% year-on-year increase in the company's net
profit during the third quarter.
The company's net profit came to 979 million pesos ($76 million)
for the July-September period, compared with MXN721 million, with
the peso's strengthening during the quarter helping the company's
dollar-denominated debt position, whereas in the year-ago quarter
the peso had depreciated sharply.
The maker of such products as Huggies diapers and Kleenex
tissues said it faced better raw-materials prices in dollar terms,
although the lower prices were offset by the peso still being
weaker than it had been a year earlier, despite gains in the
quarter. Gains from manufacturing efficiency and efforts from the
company's cost-savings program helped mitigate the negative
foreign-exchange impact, the company said.
Net sales grew 9% to MXN7.12 billion from MXN6.54 billion, as
domestic demand in Mexico continues to expand, the company said.
Kimberly-Clark de Mexico said it was able to implement price
increases for its products during the quarter, and that its sales
grew in almost all of its consumer-product categories.
The manufacturer said it sees accelerated growth potential for
products such as wet wipes and incontinence aids.
Earnings before interest, taxes, depreciation and amortization
increased 16% on the year to MXN1.9 billion from MXN1.66
billion.
Exports decreased, the company said, due to reduced demand from
Kimberly-Clark Corp. (KMB) for finished products from Mexico.
Write to Amy Guthrie at amy.guthrie@dowjones.com
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