Kimberly-Clark has warned that sustained higher oil prices could add up to $170m (£126m) in costs in the second half of the year.
The Huggies maker said that if oil prices remained at around $100 (£74) a barrel throughout the second half, it could face additional gross input cost inflation of between $150m (£111m) and $170m (£126m).
Chief financial officer Nelson Urdaneta said the potential hit was not currently reflected in Kimberly-Clark’s annual outlook, with management assessing ways to offset the impact.
The stark message comes at a time when consumer goods giants face renewed pressure from rising raw material and logistics costs. Procter & Gamble also recently flagged higher input costs as the conflict in the Middle East pushes up oil prices.
Kimberly-Clark also said it expected a $50m (£37m) hit in the second quarter following a fire at one of its distribution centres in California, alongside additional costs linked to the conflict.
Despite the cost pressures, the group kept its annual guidance unchanged, supported by resilient demand for its personal care products and growth from new product launches.
The company said it expects organic sales growth for fiscal 2026 to be in line with, or ahead of, the weighted average growth of the categories and markets it operates in, which expanded by around 2.5 per cent over the latest 12-month period.
Kimberly-Clark also maintained its annual adjusted profit forecast.
Its shares rose by around one per cent after the group beat first-quarter sales expectations.
The company posted quarterly sales of $4.16bn (£3.08bn), ahead of analysts’ average forecast of $4.09bn (£3.03bn), according to LSEG data.
However, adjusted profit slipped to $1.60 (£1.18) per share, down from $1.62 (£1.20) a year earlier, as price cuts and investment in product innovation weighed on margins.
Zacks Investment Management chief marketing strategist Brian Mulberry said Kimberly-Clark appeared to be “better positioned than some of its peers” as its transformation continued to gain momentum.
He said the company’s focus on value across its “good, better, best” product tiers was helping it navigate weaker demand and intense competition.
Kimberly-Clark is also on track to complete its $40bn (£29.6bn) acquisition of Tylenol maker Kenvue in the second half of 2026.
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