Kimberly-Clark Suffers from Mexico’s Economic Slowdown

Web Editor

July 17, 2025

a cell phone with a blue and white background and a blue and white logo on it's screen, Évariste Vi

Overview of Kimberly-Clark de México

Kimberly-Clark de México is a prominent consumer goods company specializing in personal care and hygiene products. The firm has been a significant player in the Mexican market, offering a wide range of products from diapers and wipes to toilet paper and paper towels. Its brand portfolio includes well-known names like Huggies, Kleenex, and Scott, making it a household name in Mexico.

Second Quarter Results and Economic Challenges

In the second quarter of 2025 (April-June), Kimberly-Clark de México experienced a decline in performance due to the slowing economy and reduced consumer spending. The company’s operating income dropped by 11.5% compared to the same period in 2024, placing it 2.1% below analysts’ consensus from Infosel.

Net income also took a hit, falling by 13%. Although total revenues remained relatively stable at 14,070 million pesos compared to the previous year, this figure still fell short of analysts’ expectations by 1.2%.

Cost Reduction Program

In its report submitted to the Mexican Stock Exchange, Kimberly-Clark de México highlighted a cost reduction program that generated 500 million pesos in savings during the quarter. However, the company did not disclose specifics about the nature of this program.

Impact on Consumers and the Market

The economic slowdown in Mexico has affected various sectors, including consumer goods. As a result, Kimberly-Clark de México’s performance has been impacted, with consumers potentially postponing non-essential purchases. This situation could lead to increased competition among brands as they vie for market share.

Key Questions and Answers

  • What is Kimberly-Clark de México? Kimberly-Clark de México is a well-known consumer goods company offering personal care and hygiene products, including diapers, wipes, toilet paper, and paper towels. Its brand portfolio features popular names like Huggies, Kleenex, and Scott.
  • Why did Kimberly-Clark de México’s performance suffer in Q2 2025? The company faced challenges due to Mexico’s economic slowdown and reduced consumer spending, which negatively affected its operating income and net income during the second quarter of 2025.
  • What measures has Kimberly-Clark de México taken to address these challenges? The company implemented a cost reduction program that generated 500 million pesos in savings during Q2 2025. However, details about the program remain undisclosed.
  • How might this impact consumers and the market? The economic slowdown in Mexico could lead to increased competition among consumer goods brands as consumers potentially postpone non-essential purchases.