Kimberly-Clark de Mexico SAB de CV Class B (KIMBERB) Q3 2026 Earnings Report

The call was broadly positive: the company delivered stable sales, continued Consumer Products growth, strong cost savings, improved gross and operating profitability, year-to-date EBITDA and EPS growth, and maintained a healthy balance sheet. These positives outweighed the challenges of weak consumer demand, retailer inventory caution, cost inflation, lower exports, higher financing and SG&A expenses, and unresolved transaction timing. Management remained confident in its innovation, private label, pet food, efficiency, and 2027 recovery plans.

Management expects weak consumer demand to stretch through the end of the year, with cost pressures continuing through the fourth quarter, maybe at slightly lower levels. Going into 2027, it expects steady improvements in demand supported by an economic recovery that is slowly gaining traction, improving growth rates and increased, although still moderate, domestic spending; Away from Home is expected to have a slightly better fourth quarter and hopefully, a much better 2027. Consumer Products could get back to growing at the rate achieved in the first half of the year, or mid-single digit, if domestic consumption picks up. Private label will likely a little bit more than double in size this year, with the same thing expected next year, while CapEx is expected to remain around MXN 100 million and MXN 120 million for the year and the following years, and the long-term EBITDA margin range remains 25% to 27%.