KMB · 10-Q · 2026Q3 · Full report

China Diaper Social Media Disruption

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

False allegations about the quality of certain diaper brands in China emerged during the second quarter of 2026, although Chinese authorities later refuted them and confirmed product quality and safety. The disruption affected diaper sales in China during the second and third quarters, and management expects further near-term effects on sales and profits as it works to rebuild consumer trust. In the third quarter, the disruption was an approximately 770-basis-point headwind to International Personal Care organic sales and an approximately 16.8% headwind to that segment’s operating profit; it also contributed an approximately 270-basis-point headwind to company volume and an approximately 530-basis-point headwind to adjusted operating profit.

Key facts