Rising Costs Are Hurting Kimberly-Clark's Business
The coronavirus pandemic has upended the world in ways that were both unexpected and predictable. For example, given the early medical concern, few predicted a run on toilet paper. But, from day one, economics warned about the inflationary impact of keeping interest rates artificially low to stimulate the economy.
With so many issues swirling, Kimberly-Clark (NYSE: KMB) has been busy trying to cope. The giant paper goods company is only doing so-so in dealing with the headwinds.
When Kimberly-Clark reported full-year 2021 results, it was able to show a top-line sales gain of 2%. That's not too bad, but it's not the only number to look at. Notably, organic sales slumped 1%. The difference between these two numbers for a consumer staples company is very important. Basically, the company raised product prices enough to bolster the top line even though customers bought fewer of its goods.
Source Fool.com
