Kimberly - Clark de Mexico S.A. - ADR

Top-line was steady; volume flat and mix-driven slowdown in 3Q - Q3 sales: MXN 13.4bn, flat YoY (flat volume and price/mix). - Consumer Products: +1.8% YoY, with 0.9% volume + 0.9% price/mix (5th consecutive quarter of growth). - Away from Home (AFC): -4.7% YoY, but +1.7% sequential; exports -14.8% (mainly weaker hard-roll sales). - Sequential dynamics: Consumer Products was down ~6% sequentially in 3Q—management framed this as normal post–summer promo season effects plus weaker demand environment.

Margins strengthened; strong cost program offset softer demand - COGS: -2.9% YoY. - Cost savings program: generated ~MXN 450m savings in the quarter (fiber contracting/alternative fibers, product redesigns, new raw materials in nonwovens, diaper geometry efficiency, logistics/distribution efficiencies). - Gross profit: +3.7%; gross margin 40.3%. - Operating margin: 21.9%, +60 bps YoY; operating profit +2.3% YoY. - SG&A: +5.4% YoY and +100 bps as % of sales (including data costs from clients’ platforms).

Profitability remains solid (EBITDA up slightly); balance sheet healthy - EBITDA: MXN 3.4bn, +1.6% YoY; EBITDA margin 25.5% (within long-term range). - Net interest expense: higher (MXN 456m vs MXN 404m) due to additional debt issued. - Net income / EPS: MXN 1.7bn / MXN 0.56, in line with prior year. - Cash & leverage: cash MXN 20.2bn; net debt/EBITDA 0.8x; EBITDA to net interest coverage ~9x.