started · updated
Kimberly-Clark cuts forecasts as China diaper controversy hits sales
Kimberly-Clark announced on Aug. 4 that it is lowering its annual sales and profit forecasts after a sharp decline in second‑quarter sales in China. The drop was linked to false claims circulating on Chinese social media that the company’s Huggies diapers contained toxic formamide, despite independent testing by a government‑certified third party confirming the products’ safety.
China’s market regulator had opened a joint investigation into “formamide issues in infant diapers” on June 22, but has not provided an update. The company said the disruption in the Chinese market, a major growth engine, will continue to affect sales and profit in the near term. In North America, volumes fell 0.3% in the quarter as inflation‑driven price pressures reduced spending.
Kimberly-Clark now expects 2026 organic sales growth to lag the weighted average growth of its categories and markets by about 100 basis points and projects annual adjusted earnings per share to rise at a high‑single‑digit rate, down from an earlier double‑digit outlook. The firm is on track to complete its roughly $40 billion acquisition of Kenvue by year‑end. It also completed the sale of a 51% stake in its international tissue business to Brazil’s Suzano, forming the $3.4 billion Arbex joint venture to compete with rivals such as Procter & Gamble and Essity. Net sales for the quarter were $4.19 billion, with adjusted operating profit up 6.2% to $757 million.
Entities
Arbex · Huggies · Kenvue · Kimberly-Clark · Suzano
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Kimberly-Clark finalized the sale of a 51% stake in its international tissue business to Suzano, creating a $3.4 billion Arbex joint venture. jack1065.com · wkzo.com · wtvbam.com
- [● 3 SOURCES] Chinese social media circulated claims that Huggies diapers contained toxic formamide. jack1065.com · wkzo.com · wtvbam.com
- [● 3 SOURCES] Independent testing by a government‑certified third party confirmed the quality and safety of the diapers. jack1065.com · wkzo.com · wtvbam.com
- [● 3 SOURCES] Kimberly-Clark cut its annual sales and profit forecasts on August 4, 2024. jack1065.com · wkzo.com · wtvbam.com
- [● 3 SOURCES] The company expects annual adjusted earnings per share to grow at a high‑single‑digit rate on a constant‑currency basis, down from an earlier double‑digit forecast. jack1065.com · wkzo.com · wtvbam.com
- [● 3 SOURCES] China’s market regulator announced on June 22 a joint investigation into “formamide issues in infant diapers”. jack1065.com · wkzo.com · wtvbam.com
- [● 3 SOURCES] The forecast cut was due to a significant hit to second‑quarter sales in China caused by false claims that Huggies diapers contained toxic formamide. jack1065.com · wkzo.com · wtvbam.com
- [● 3 SOURCES] Kimberly-Clark expects 2026 organic sales growth to trail the weighted average growth of its categories and markets by about 100 basis points. jack1065.com · wkzo.com · wtvbam.com