KMB · 10-Q · 2026Q3 · Full report

China Diaper Sales Disruption

KIMBERLY CLARK CORP · 2026-11-05 · Importance 45 · Surprise 50 · In source text

False allegations about certain diaper brands in China significantly affected diaper sales during the second and third quarters of 2026, although Chinese authorities refuted the allegations and confirmed product quality and safety. The disruption was an approximately 270-basis-point headwind to consolidated third-quarter volume and an approximately 530-basis-point headwind to adjusted operating profit. In International Personal Care, the disruption was an approximately 770-basis-point headwind to third-quarter organic sales and contributed to a 32.7% decline in segment operating profit to $144 million. For the nine months, the disruption was an approximately 300-basis-point headwind to International Personal Care volume-plus-mix and an approximately 210-basis-point headwind to adjusted operating profit.

Key facts

• The China diaper allegations significantly affected diaper sales in the second and third quarters of 2026 and are expected to further impact sales and profits in the near term. source

Impact estimates