For 19th consecutive quarter, growth in net sales.
For 12th consecutive quarter, growth in operating
profit.
Operating profit margin reached the level of 27.3
percent. 40 basis points above last year.
ROIC of 25.4 percent versus 18.7 percent a year
ago when the discontinued business was still a part
of KCM.
Cash position greater than 2.5 billion pesos.
SELECTED INCOME STATEMENT DATA (1) & (2)
Quarter ended March 31st.
2007
2006
% CHG
NET SALES
$5,209
$4,912
6
INCOME BEFORE PROFIT SHARING & IFCR
1,423
1,320
8
INTEGRAL FINANCING COST RESULT & PROFIT S.
171
338
N/A
NET INCOME FROM CONTINUING OPERATIONS
941
750
26
DISCONTINUED OPERATIONS
-
37
(100)
NET INCOME
941
787
20
EARNINGS PER SHARE FROM CONTINUING OPERATIONS
(PESOS)
0.83
0.65
28
EBITDA
1,684
1,579
7
Net sales for the quarter grew 6 percent versus the
prior year, driven mainly by the superior performance
of the consumer products group which grew 6 percent
in real terms, 4 percent due to a higher volume and
2 percent due to better prices and product mix.
The consumer products business which accounted for
90 percent of net sales, continued with the positive
trend in net sales and operating profit initiated many
years ago as a result of the strategy to more actively
participate in all the segments of the market. The professional
products business decreased 9 percent in net sales versus
the prior year while the export product business grew
18 percent in net sales versus the prior year.
Pressures on cost continue and we continue to be affected
by increases in the main inputs, particularly pulp and
fibers for recycling as well as electricity and oil
derivatives. Despite these cost increases, the income
before profit sharing and integral financing cost result
(IFCR) grew more than the growth in net sales due to
the higher volume, to a better mix in the units sold
and to improved operations and efficiencies in the manufacturing
facilities. In addition, we continued to receive the
benefit of with cost savings programs implemented in
all areas. For these reasons, the margin for income
before profit sharing & IFCR was 27.3 percent, 40
basis points higher than the previous year.
Net income from continuing operations was 26 percent
higher than the prior year and exceeded operating profit
growth. This was due mainly to not having been affected
by the appreciation of the exchange rate over a long
position in financial instruments which resulted in
the integral financing cost being lower than the prior
year.
The quality of the corporation's earnings is reflected
in a solid financial position and an important generation
of cash.
We generated an EBITDA of close to $1,700 million pesos,
7 percent above the previous year and reduced days in
accounts receivables.
All this enabled to end the quarter with $2,513 million
pesos in cash after having invested $1,785 million pesos
($1,018 in capital expenditures, $767 in the re-purchase
of stock) and having paid out a regular dividend to
our shareholders of $2,790 million pesos plus an extraordinary
one for $2,986 million pesos in the last twelve months.
Under United States generally accepted accounting principles
(US GAAP), the PROCON quarterly results expressed in
millions of dollars, were as follows: Net Sales of $471,
6 percent above the prior year; Operating Profit of
$135, 4 percent above the previous year; and, Net Income
from continuing operations of $89, 23 percent above
2006.
Share Buyback Program
2007
2006
Repurchased shares during the quarter
1,587,900
907,700
Consolidated Balance Sheets (1) & (2) as
of March 31st, 2007 and 2006
2007
2006
Assets
Cash
2,513
2,041
Accounts and documents receivable
4,352
3,805
Inventories
1,680
1,310
Current assets from discontinued operations
35
1,979
Long term account receivable
573
-
Property, plant and equipment
13,559
13,451
Long term assets from discontinued operations
______-
___3,645
Total assets
22,712
26,231
Liabilities and consolidated stockholder's
equity
Bank loans
99
102
Derivative instruments
-
438
Suppliers
2,388
1,541
Accumulated liabilities
1,327
1,271
Dividends payable
2,967
2,809
Taxes and profit sharing payable
1,102
642
Current liabilities from discontinued operations
650
1,149
Long term loans
5,009
5,273
Deferred taxes
1,917
1,944
Long term liabilities from discontinued operations
-
703
Consolidated stockholder's equity
__7,253
__10,359
Total
22,712
26,231
Consolidated Statements
of Changes in Financial Position from January
1st to March 31st, 2007 and 2006 (1) & (2)
2007
2006
Net income
941
787
Depreciation
261
259
Changes in working capital
___410
___(436)
Sources generated by operating activities
1,612
610
Dividend payments
-
(18)
CAPEX
(275)
(112)
Share repurchases
(79)
(34)
Discontinued operations
43
247
Financing activities
(12)
(2)
Derivative instruments
__(571)
__(545)
Sources generated
718
146
Cash at the beginning of the year
1,795
1,895
Cash at the end of the period
2,513
2,041
(1) Prepared in accordance with Mexican financial information
standards and expressed in millions of pesos as of March
31st, 2007 purchasing power.
(2) Due to the divestiture of the Writing and Printing
Papers and Notebooks businesses that was completed on
October 27, 2006 and, in accordance with the guidelines
established by the Mexican Financial Information Norms;
the Financial Statements being presented include the
detail of the operations of the Consumer, the Professional
and the Export Products businesses that are the continuing
operations plus a summary of the results for 2006 from
the divested business as a separate line item denominated
"Discontinued Operations" and finally the
Net Income for the company.
Kimberly Clark de Mexico is engaged in the manufacture
and commercialization of disposable products for daily
use by consumers within and away-from-home, such as:
diapers and child care products, feminine pads, incontinence
care products, bath tissue, napkins, facial tissue,
hand and kitchen towels, wet wipes and health care products.
Some of the main brands include: Huggies®, Kleen-Bebé®,
Kleenex®, Kimlark®, Pétalo®, Cottonelle®,
Depend® and Kotex®.