KMB · 8-K · 20260804PR052113

China Diaper Demand Disruption

KIMBERLY CLARK CORP · 2026-08-04 · Importance 40 · Surprise 42 · No source text

False allegations about the quality of certain diaper brands materially reduced Kimberly-Clark’s diaper sales in China during the second quarter. Independent testing by a government-certified third party confirmed the quality and safety of the products. The disruption reduced total company organic sales growth by approximately 50 basis points and created a 140-basis-point headwind to International Personal Care organic sales. Kimberly-Clark said the spread of the claims across social media is expected to continue affecting sales and profits in the near term.

Key facts

• This outlook primarily reflects approximately 100 basis points at a total company level from the China social media disruptions. source
• IPC operating profit of $186 million increased 2.2 percent in the quarter and faced a 440 basis point headwind from the China social media disruption. source
• The Company stated the China social media disruption significantly impacted the Company’s diaper sales in China in the second quarter and is expected to further impact sales and profits in the near term. source
• Organic sales growth included an approximately 50 basis point negative impact from the China social media disruption. source
• These gains were partially offset by an approximate 210 basis point headwind from a combination of business exits and the China social media disruption. source
• IPC organic sales benefitted from strong volume-plus-mix led growth of 1.2 percent, reflecting improvements that more than offset a 140 basis point headwind from the China social media disruption. source

Impact estimates