KMB · 10-Q · 2026Q2 · Full report

China Diaper Demand Disruption

KIMBERLY CLARK CORP · 2026-08-04 · Importance 40 · Surprise 42

False quality allegations spread through social media in China during the second quarter of 2026, despite independent government-certified testing confirming the quality and safety of Kimberly-Clark’s diaper products. The disruption significantly reduced diaper sales in China and is expected to continue affecting sales and profits in the near term. China social-media disruption reduced total organic sales growth by approximately 50 basis points and created a 140-basis-point headwind to International Personal Care organic growth. The disruption reduced International Personal Care operating profit by approximately 440 basis points in the quarter.