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Kimberly-Clark Introduces K-C Strategy 2022 - Quick Facts

While reporting its fourth-quarter results on Wednesday, Kimberly-Clark Corp. (KMB) said it is introducing K-C Strategy 2022 as the company looks ahead to its 150-year anniversary in 2022.

The company noted that the plan's objectives are to deliver balanced and sustainable growth and to create shareholder value in what is assumed to be a continued challenging environment.

The plan is focused on growing Kimberly-Clark's brand portfolio, leveraging the company's cost and financial discipline, and allocating capital in value-creating ways.

Kimberly-Clark said it will target to grow sales in-line with, or slightly ahead of, category growth rates.

The company's three growth pillars are to elevate core businesses, accelerate growth in D&E markets and drive digital marketing and e-commerce. The company expects to achieve these pillars by launching differentiated product innovations, driving category development and leveraging commercial capabilities in sales and marketing.

Kimberly-Clark said it will generate savings in order to fund growth initiatives and improve margins by focusing on driving ongoing supply chain productivity improvements through the FORCE program, executing the 2018 Global Restructuring Program, and rigorously controlling discretionary spending.

The company plans to allocate capital in value-creating ways, enabled by strong cash generation. It expects to spend capital at an annual rate of 4 percent to 5 percent of net sales after completing the 2018 Global Restructuring Program.

Kimberly-Clark's medium-term financial objectives associated with K-C Strategy 2022 are sales and organic sales growth of 1 to 3 percent annually, adjusted earnings per share growth of mid-single digits annually, and dividend growth to be generally in line with adjusted earnings per share growth.

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