Kimberly-Clark de México 2Q26 – Consumer strength offsets soft AFH and exports, margin improvement

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Kimberly-Clark de México 2Q26 – Consumer strength offsets soft AFH and exports, margin improvement

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Kimberly-Clark de México

2Q26 – Consumer strength offsets soft

AFH and exports, margin improvement

Maintain Rating: BUY | PO: 48.00 MXN | Price: 38.57 MXN

Consumer up 5%, but exports and professional decline 22 July 2026

EPS of Ps0.68 beat a consensus Ps0.67, and rose 10.5% y/y on stronger gross margin

and cost structure improvements, offset in part by higher net financing costs and taxes. Equity

Consolidated sales rose 2.7%, as Consumer strength (+5%) offset weakness in Away

from Home (-5%), and lower hard roll volumes (Exports -11% in MXN, flat in USD, but up

Robert E. Ford Aguilar, CFA

11% q/q in MXN). Research Analyst

BofAS

+1 646 855 5439FX and cost savings lift margins robert.e.ford@bofa.com

MXN strength and ongoing efficiency improvements helped lift gross margin 343bp y/y

Melissa Byun, CFA

(67bp q/q), to 41.6%, as KCM lapped unfavorable prior-year hedges. Higher oil derivative Research Analyst

costs began to filter into resins and super absorbent materials as KCM benefited from BofAS+1 646 855 3177

favorable fluff and fiber costs. KCM also generated Ps450mn (3.1% of sales) in cost melissa.byun@bofa.com

savings. EBITDA rose 9.6%, and margin expanded 171bp y/y (40bp q/q), to 27.1%, at the Wellington Santana >>

higher end of KCM’s 25%-27% longer-term target range. ResearchMerrill LynchAnalyst(Brazil)

+55 11 2188 4117

wellington.santana@bofa.comInputs may need a price offset in 2H26

While KCM holds share in tissue, data suggest it is likely to begin facing tougher input

costs in 2H26 (Exhibit 8-Exhibit 11), as recovered paper, resin and pulp prices rise.

Consumer tissue pricing is generally lagging overall inflation, with the exception of Stock Data