Kimberly-Clark’s sales of $5 billion in the first quarter of 2020 increased 8% compared to the year-ago period. Changes in foreign currency exchange rates reduced sales by 2% and business exits in conjunction with the 2018 Global Restructuring Program reduced sales slightly. Organic sales increased 11%. Volumes increased more than 8%, driven by increased shipments to support consumer stock up related to the global outbreak of COVID-19. The stock up impacted all business segments, in particular consumer tissue, and all major geographies. Net selling prices and product mix each improved 1%. In North America, organic sales increased 11% in consumer products and 6% in K-C Professional. Outside North America, organic sales rose 9% in developing and emerging markets and 15% in developed markets.

Chairman and chief executive officer Mike Hsu comments, “Since the outbreak of COVID-19, Kimberly-Clark has taken decisive actions to protect the health and safety of our people, customers and consumers, proactively managed our global supply chain to ensure a steady supply of our essential products, and positioned our brands to help support those in need. I am incredibly proud of all the ways our employees are responding to this crisis, all while staying focused on serving consumers who count on Kimberly-Clark.

Hsu continued, “A combination of increased consumer demand for our products and strong execution by our teams is reflected in our first quarter results. We increased investments in our business and our market positions remain broadly healthy. In addition, we generated very strong cash flow and further strengthened our balance sheet by executing two long-term debt transactions in the quarter. Given the lack of visibility and uncertainty about the pandemic and its potential effects on the global economy and our business, we are temporarily suspending our forward-looking guidance. We expect that we will resume guidance when the environment stabilizes and we can provide a clear picture of our expectations. As always, we are prudently managing our business in the near-term while maintaining focus on the long-term health of our company.”

In the Personal Care Segment, first quarter sales of $2.4 billion increased 6%. Volumes increased approximately 7%, product mix improved 2% and net selling prices rose 1%. Changes in currency rates reduced sales by 3%.

Sales in North America increased 10%. Volumes increased 7%, product mix improved 2% and net selling prices rose 1%. Volumes increased double-digits in adult care, high-single digits in feminine care and mid-single digits in baby and child care. The changes in product mix and net selling prices were driven by baby and child care.

Sales in developing and emerging markets increased 3% despite a 6 point negative impact from changes in currency rates. Volumes increased 6%, product mix improved 3% and net selling prices rose 1%. Volumes increased in Asia-Pacific, Eastern Europe, the Middle East and South Africa.

Sales in developed markets outside North America (Australia, South Korea and Western/Central Europe) increased 5% despite a 5 point negative impact from changes in currency rates. Volumes increased 8%, driven by Australia and Western/Central Europe, and net selling prices and product mix each improved 1%.