Kimberly-Clark Corporation (KMB) Earnings Call Transcript & Summary

Hi, everyone. Our next presenter is Kimberly-Clark, which is currently in the midst of one of the largest transactions and biggest corporate transformations in CPG history. The team is led by Chairman and CEO, Michael Hsu. Since taking the helm in 2019, Mike could do reach within the company, building a veteran leadership team with extensive experience in key areas and reshaping the portfolio to become a leader, a global leader in branded personal care. Under its power and strategy, Kimberly-Clark has been one of the few in the industry to inflect positive volume-driven organic growth while [indiscernible] profit margins from strong productivity. Today we look forward to hearing how the company will continue the momentum it's built and how we can bring that to [ continue ] when the transaction is expected to close in the second half of 2026. Following the presentation, members of the management will be available for Q&A. Please ensure to make your way outside during lunch to their signature island. And a big thank you to Kimberly-Clark for sponsoring today's lunch. So just a reminder, the breakout will be at lunch. With that, it's my pleasure to hand it over to the company. Please welcome, Mike Hsu, Chairman and CEO of Kimberly-Clark, who will be joined today by Russ Torres, President and COO; Craig Slavtcheff, Chief R&D Officer; Patricia Corsi, Chief Growth Officer; and Nelson Urdaneta, Chief Financial Officer. Thanks, Mike. [Presentation]

Okay. That was a little bit about us. For K-Cers, it's a powerful reminder of our mission. This is why we do what we do. We provide the best, most innovative to deliver better care to our consumers every day. This is what makes a K-C-ers tick and precisely what makes Kimberly-Clark a very special company. For more than 150 years, Kimberly-Clark has been there for people at their most important moments. People place their trust in us. From the beginning of life to the very end, consumers invites us into their lives, and we're proud to be with them every step along the way. With innovative products that solve their most intimate challenges. Babies with Huggies and Pull-Ups, young women experiencing their first period with Kotex, adults with incontinence living fully with Poise in the pen. Every day essential like Kleenex and Cottonelle are iconic brands deliver for our consumers when they need us most. So by caring for people throughout the journey of life, Kimberly-Clark is there for moments of connection. We form deep connections with consumers that establish brand preference for years and decades. We reinforce that brand love with powerful consumer-inspired innovation in storytelling that resonates emotionally. Moments of connection are how we drive brand love and lifetime bonds that translate to superior lifetime value. Now our presentation today is about the operating model we've built, the momentum we've established and how it positions us to capture the generational value creation opportunity we have as we prepare to integrate Kenvue. Our products are everyday essentials that serve 1 in 4 people every day in categories for the most part, we invented. We have $6 billion global brands and leading positions in over 80% of our key markets. We're pivoting the portfolio towards personal care categories with attractive long-term growth potential and where we're executing at a high level. Powering Care has established industry-leading momentum. We're performing well transforming in a difficult environment by accelerating pioneering innovation, optimizing our margin structure and wiring our organization for growth. Our momentum is reflected in our financial performance. We've delivered 2 consecutive years of broad-based volume plus mix growth and accelerated our rate of growth in 2025. We're delivering that level of growth in categories growing on average about 2%. And we're excited about the opportunity to accelerate growth in Kenvue categories, many of which are currently growing faster than [indiscernible]. We're on a sustainable path towards the margin milestones we established 2 years ago. Industry-leading productivity gains are funding investments to improve our brand proposition, drive brand love and enhance our commercial capability. We've also made significant investment in our capabilities and our infrastructure. Those investments set us up for where we are today, ready to capture a generational opportunity with the acquisition of Kenvue. Powering Care is our proven and sustainable value creation engine. This approach is designed to generate a virtuous cycle of growth. The components of Powering Care are mutually reinforcing and designed to drive durable, sustainable and profitable growth, even when the environment delivers the unexpected. Powering Care is enabling us to make the best most innovative products for the lowest cost, build brand love and drive robust volume plus mix growth. Today, we're going to double-click on out innovate and out market and will illustrate how we pull all together to create lasting impact for our consumers. Science is our competitive advantage. Our innovation approach uniquely pairs our scientific expertise and our obsession with solving the consumers' most important problems. This approach has accelerated our pace and impact of innovation. We focus on the most important consumer needs in our categories, leak-free confidence, garment-like comfort, healthy skin and sleep full night. This focus provides us to deliver these benefits with compelling offerings and value at every run of the good, better, best ladder. Our innovation is to deliver category shaping performance. We've led the premiumization of our categories by redefining the boundaries of what performance means. As we look ahead, we're excited about our innovation pipeline and have convictions that our next 10 years will be even stronger than our last 10 years. We build brand love by visualizing our groundbreaking benefit in the context of life's most intimate moments. We're leveraging content at scale that builds brand love to extend our category leadership. We've experienced notable successes across the Pen, Poise and Kleenex not to mention Huggies in North America. We've built a unique and advantaged digital commerce engine in China, a market that is comprised of some of the world's most discerning consumers and a leading edge demand ecosystem. This is the platform for our digital commerce engine that fuels KC globally. We've also been thinking outside the box and built differentiated in-house creative capability that is generating award-winning creative. We're breaking stigmas and building a deeper brand connection. At retail, we're fostering better, frictionless shopper journeys online and offline and backing it with flawless end-to-end execution. We strengthened strategic customer partnerships through joint business planning over an extended financial [ driver ]. And this approach has been recognized by all our top customers. We're supporting them to help shape the future of digital commerce. Powering Care is a repeatable [indiscernible] by our acquisition of Kenvue. Like us, Kenvue's iconic brands form lifelong bonds with consumers. Together, our powerful stable will raise the standard of care for millions of people around the world. And I should note, like many of you, I was at Johnson's Baby. The earliest memory I have of my mother is of her washing my hair with Johnson's Baby shampoo. Joining forces with Kenvue presents a generational opportunity to create the preeminent personal wellness company that provides extraordinary everyday care. Together, we'll have leadership positions in many of the industry's largest, most attractive category. These categories have favorable growth and penetration trends across Baby Care, Women's Health and [indiscernible]. We'll be uniquely positioned across these core growths to grow as they grow. We'll earn the trust of more people by helping them raise their children, care for themselves and care for their loved ones. And doing this will create durable value for our shareholders. We're ready to accelerate into our next chapter. And for today, we'll highlight those capabilities and how they set us up to hit the ground running with Kenvue. We have a generational opportunity for us. We've established strong repeatable growth momentum that's grounded in a fast and agile operating model. It's driving a successful transformation, building differentiating capability and core financial strength. The repeatable, durable model of Kenvue will seamlessly plug into. So next, Craig, Patricia and Russ will illustrate how we out-innovate, out-market, out-activate and deliver the best product at the lowest cost to our consumers and customers.

Thanks, Mike. Hello, everyone. I'm Craig Slavtcheff, and I lead Research and Development at Kimberly-Clark. At our core, we are a company of inventors and discovering science that serves consumers, as Mike said, is our competitive advantage. It's what energizes our 1,300 scientists and engineers around the globe, solving for the biggest consumer challenges. And we built a system that turns that into profitable growth consistently. Today, I'm going to walk you through the transformation that has put us on new path, one that out-innovates, out-markets and out-activates competition and delivers real measurable results. So how do we do it? Well, it starts with our innovation ecosystem. We have transformed against 3 simple pillars: First, consumer intimacy that leads to insights that then frame the need [indiscernible] to solve against. Second, connecting our efforts on short, medium and long-term innovation through our matrix wiring. Then doing so allows us to aggressively scale innovations in the short term, accelerate the launch of large technology platforms in the medium term and drive our future disruptive thinking in the form of [indiscernible]. And lastly, we have embraced agile design methodology across the organization in support of pipeline [ acquisition ], allowing us to put our best minds on the biggest technical problems we see shifting our project delivery from years. So as I said, [indiscernible] consumer insight. Now these consumer need states with the demand signals that direct all of our future innovation, marketing and activation. Now some of these are intuitive and a bit obvious at this high level, leaks-free, fresh and oder-free, et cetera. But double-clicking on each reveals the richness of category-specific insights that are the genesis of our pipelines. And broader insights allow us to innovate in nonobvious [ medicine ] areas, and therefore, premiumize the category to grow value. Globally relevant, drawn from jobs to be done, shaped by emotional and functional drivers and weighted by how dissatisfied consumers are with what's currently available in the market. Those need states don't just shape our product road map, they direct us to where we push the science. Now Kimberly-Clark has a long history of pushing the boundaries of science. That hasn't changed, but how we direct it has. Our scientific discovery is laser-focused on areas, all driven by foresight and deep consumer understanding. Like our global need states, there are some usual suspects here on this page. For example, next-generation absorbent systems and materials, designed to bend the performance curve of our personal care products. Mothers push the boundary of the premium benefits we see to deliver to our consumers. Most notably, advancing of the human microbiome and its impact on human health and skin physiology because really, every one of our products is used on skin that is vulnerable to [ insult ] and our goal is to bring the latest science to maintain health and comfort. But breakthrough science only matters if we can get it to every market and price point where our consumers [indiscernible]. That's where our wiring comes in. Our wiring gives us on powerful, visibility and access to the best technology and consumer insights across the globe, leveraging the latest AI tools and our matrix structure to do so. That's how we drive portfolio harmonization. Now here's what that looks like in practice. In baby and child care, across 65 countries that make up our enterprise market segment, we went from 300 individual and independent projects to 11 scalable benefit platforms, all within 12 months. Then we deploy best performance, best cost technology into each market to make sure we are delighting consumers everywhere we compete. And at the end of the 2025 after 12 months, we have moved 70% of our geographies to winning product designs with plans to close the remaining 30. Now wiring also allows us to drive connectivity between short-, mid- and long-term technology efforts into one integrated system with commercial governance across all 3. Near term, we're scaling aggressively. Our 3-year pipeline has benefited from over $500 million in incremental net sales from scaling launches alone. Midterm, we're investing in a simple list of 10 core technology platforms that will shift performance curves across our categories in the next 3 to 5 years. And we're getting new platforms to market in as little as 18 months. Long term, 5 simple but stretching moon shots over the next 5 to 10 years, instructing not only category bending science that will direct the future of our categories, but new claims space to continue driving premiumization. So what does it all add up to? Let me show you. Kimberly-Clark's growth in 2025 was overwhelmingly boosted by innovation. This isn't a 1-year story. Our innovation portfolio has over-indexed on contribution to organic growth for over 3 years running, and it continues to be margin accretive. The numbers tell the story. Over 75% of volume plus mix-led growth came from innovation and the innovations we launched [ posted ] average margins that were 280 bps accretive. Looking ahead, the pipeline is extremely healthy. Our F'26 to F'28 pipeline is 160% the size of our pipeline in 2020. And the average margin of our full pipeline is 670 basis points accretive to our current base business. This system is working and we're building on it. So scaling innovation into multiple markets increases the ROI on our innovation investment. And to be candid, historically, our global scaling efforts were slow. Our generation 3 absorptive core, no wiring, 20 years, only 3 launch countries. Since then, we have flipped that entirely. In Baby Care, our Cloud Waistband premium feature wraps a baby's waist in a plush, cushiony cloud that moves when they move. It was launched as a premium feature and top tiers diapers initially. Fast forward with global wiring, 3 years, 57 launch countries. That's what the system delivers. Now speed is one thing, but we also need to make sure innovation reaches every consumer at every price point. And a key part of out-innovate is continuously scaling premium innovation features down through the value tiers, driving towards best product, lowest cost. We take premium features and value engineer them to scale across the good, better, best ladder. Cloud Waistband is a great example. As I said, we started with the most premium design at the top tier. Been engineered a second generation of that feature at 75% lower cost, 75% lower capital and runs on more assets, expanding our launch reach dramatically. Most notably launching in Tiers 3 through 7 across the globe. That's how we scale what we have. Let me share a fem care example. Kotex Gravity is a breakthrough Feminine Care innovation that delivers a step change in performance. Consumer testing confirms superior cleanliness, dryness and comfort driven by a proprietary absorptive core technology that rapidly pulls fluid away from delicate [ volvo ] skin. Compared with the conventional core, Gravity delivers 120% faster absorption, 60% less surface residue, 30% improved dryness and at the same time, can absorb 20 times its weight and fluid. Now scaling across 27 markets with strong IP protection, Gravity strengthens competitive advantage for Kotex and elevates the standard of menstrual care for women worldwide. Pretty awesome. And consistent with our playbook, we are building premium benefits on top of this scale technology. One of our newest innovations, Kotex BioCare, was built off of a key insight. Traditional period pads can disrupt intimate skin's natural barrier, trapping excess moisture increasing skin PH, leaving skin susceptible to irritation and discomfort Kotex BioCare is pH proactive proprietary technology is designed to help you protect it and support a healthy PH and help defend against odor and irritants. This is a game changer for the category. BioCare takes our winning globally scaled Gravity core and builds a premiumization benefit on top of it. And you all will have a full pack of BioCare before it's available in the U.S. in your gift bags out in the lobby. So now recall that I talked about longer-term disruptive technology. One of our [ fine ] Moonshots is called sleep uninterrupted. And as part of that, we asked a bold question, how much can a diaper actually influence a baby's quality of sleep? And by inference, mom and dad's quality of sleep? Well, we tested it, and we prove just how much it matters. In China, the Deep Sleep Master launch is our hero with consumer tests showing significantly more total sleep a significantly more deep sleep time, delivered through faster absorption, better breathability, better leak protection. This launch has led to 210 basis points of share gain in the very competitive top tier diaper market in China. That's what happens when future-directed science meets a consumer insight, no one else has sell before. So we're not just meeting needs. We're anticipating them the proprietary solutions no competitor can match. But breakthrough innovation is only the first step. Innovation creates the substance, creativity creates the connection. And that's where my partner, Patricia comes in with marketing. Over to you, Patricia.

Thank you, Craig. Good morning, everyone. My name is Patricia Corsi, I'm the Chief Growth Officer at Kimberly-Clark. Out-innovating with our products is just one of the powerful tools that we have in our toolbox. And today, I want to share with you another 2 out-market and out-activate. We have a disciplined approach to leverage these 3 pillars and unlock long-term growth. We are going to focus on these 3 key areas, Holistic Blueprint for Growth, Building Brand Love, and Digital Transformation. And with those, we are going to deliver end-to-end superior experience to our consumers and deliver best-in-class performance results. And we are well positioned with our categories to benefit from demographic and populational shifts. We are seeing healthy growth categories and in a rates that are much higher than historically. The acquisition of Kenvue will give us further relevant moment of connections with well-known and loved brands globally. And to fully benefit from these positive trends, we will apply our holistic Blueprint for Growth. This is a systematic consumer grounded and repeatable approach that focus on how to unlock the biggest opportunities. With it, we simplify it and we make it actionable in the marketplace. With more users, usage and occasions, we will continue to unlock growth. And in our categories, there is a wealth of opportunity ahead of us. And I'm going to show you just a couple of examples, starting with this one with Baby and Child care. With innovation and non innovation-led growth opportunities in the different pillars also in different geographies and an increasing bifurcated world, this allows us to serve better and more consumers. And this is just another example from Feminine Care category, just to showcase to you that we are implementing this in all our categories and geographies. And as you can imagine, there is much more behind these boxes than you can see today. And we are building Brand Love, and you heard Mike talking about it. Our transformation does not only rely on data. We are building Brand Love and building a generational value to moments of connection. We are grounding ourselves in consumer differentiated insights and we will continue our product superiority focus while building much, much stronger brands that consumers love and admire. And this is not marketing fluff. It is important and why it's important because building Brand Love drives loyalty, repeat, trial and increase brand equity. And all of this deliver much stronger results. And I'm going to show you some examples, starting with the Baby and Child Care category. And by the way, for all of them, I'm going to show you the results that we are getting in the marketplace. First, video, please. [Presentation]

This is the first example. It comes from a home country, Brazil, where product insight was translated into communication, leaving parents free of worry of diaper marks. This showcase our end-to-end approach yields superior results. Let's start with market share gains, almost 300 basis points, and we reached over 1 billion media impressions since the launch. This was an end-to-end because we have launched new product innovation, new packaging, visual identity and also new communication campaign. And from Brazil, we move to Indonesia, and I'm going to do a little bit of [ front 2 ]. This was our previous Sweety brand packaging in Indonesia. And let me show you what we have done last year. New product, winning concept, new design, new communication and of course, the results show 34% growth in the premium segment. Not only that, the consumer response as well, 4.9 stars on TikTok, #1 premium seller on Shoppe and 5 stars in Lazada. And let me go to the last example on the BCC category. Video, please. [Presentation]

I'm sure you agree with me that it has nothing to do with the traditional diaper advertising, and this is how we are transforming Kimberly-Clark. Another example, this time from the U.S. end-to-end new product, new brand visual identity and new campaign, over 1.8 billion impressions and around 30% better return on investment. When I say it's not marketing fluff, it's really not marketing fluff. And share gain again. So this is how we are delivering it in BCC. And now moving to Adult Care, showing that we can use creativity to build Brand Love but also deliver better consumer experiences. Impactful creativities, even more needed in categories that are so stigmatized. Over 1/3 of the men in here and in the world and 2/3 of the women will suffer bladder leakage in any point on their lives. And this is a topic that you can imagine nobody wants to talk about. But we are here to help this discussion to start. And in Australia, you can see that with the new packaging design that helps you clarify what the product does and how to help consumers, we are taking the stigma of being seen in front of the shelf. And in the U.S. We partner with Katherine Heigl, and we are helping women to stop whispering in fun sports and digital content. And in both cases, you can see market share gain once again. And my last one on this pillar, very close to my heart. This has just been launched last week in the U.S. It's a new Kotex platform. And I'm going to let it speak for itself on your [ floor ]. [Presentation]

Now I think you would agree with me that this is putting this brand back or where it should be. So this is from where we were and this is where we are going to go. We are completely relaunching Kotex in the U.S., new product you have heard from Craig with Gravity technology, bamboo and BIO-CARE. We have new packaging design and an end-to-end consumer discovery on shelf and online. And this is a global platform. This is going to go to multiple countries across the globe showcasing that what we are doing is a repeatable model, and it delivers economies of scale. So I'm going to move now to the third and last part, but before that, I'm not going to have the chance to show all the transformation that we have been doing in the past 15 months. Brands like Kleenex, Poise and Andrex have also been recognized not only externally but have been delivered with Brand Love an outstanding creativity, household penetration gains, market share gains and also sales growth. You will have the chance to see it during lunch on our screens. Now I'm going to move to the last and third pillar of my presentation today, Digital Transformation. We continue to elevate our capabilities on digital transformation with really important strides in AI, data, social and agentic commerce. And I'm going to show you today, 3 examples on how this is already delivering results in the marketplace. I will start with China. And as Mike said, really, really important market and digital is leading in there. We are leading in social commerce with superior results with our best-in-class social first model. It includes co-creation of products and designing concepts to win in social platforms. We have placed big bets on creators, and we are doing partnerships that build content that is both journey and occasion led. With that, again, I know that I'm sounding like a broken record, market share gains, 890 bps and 60% lower cost per view. I'm going to show you just very short videos on how does it work in digital in China. [Presentation]

And the next one, needless to say that can be applied to any country. I think in Brazil, it's with [ Carameelo ]. And if we move to the next one, this model continue to be expanding. In Indonesia, it has delivered exactly the same outstanding results. And soon, it will scale up to Brazil. And lastly, we are coming to e-commerce. In the U.S., our business benefits from 700 bps share in online versus offline. And because of that, one of -- this is one of the reasons why Kimberly-Clark U.S. was selected as a -- by a key e-commerce player as a beta partner for its new Gen AI capability. With this platform work that previously took 2 weeks now takes 2 days. We have piloted with Huggies and Wipes, and we are going to scale this up to our brands. This data-driven approach is really transforming category discovery and has delivered over 200 basis points of share growth in this critical channel. And this is how we are transforming Kimberly-Clark from a company of inventors to a company that has brands and innovation that transform and improve consumer lives. With our holistic Blueprint for Growth, Building Brand Love and with Digital Transformation, this is our playbook to win with consumers and customers. Over to you, Russ.

Okay. So I know lunch is next, so I'm going to bring us home. I'm Russ Torres, the President and Chief Operating Officer of Kimberly-Clark. And I can tell you, I've spent a lot of time with our teams and customers around the world and what is unmistakable is the incredible momentum we have here at KC. And our people are the key. They possess a sense of purpose that's not just cultural. It's a competitive advantage that powers our execution every day. Mike outlined the Powering Care strategy. Craig talked about driving pipeline strength and product superiority. Patricia just showed you how we're unlocking Brand Love and driving growth in users and usage. And I'm going to talk about our focus on volume growth, our drive to be the lowest cost producer and accelerate investments and how our operating model brings it all together to help us win in our markets. We are seeing the results of Powering Care in top-tier volume plus mix-led growth, 2.6% in 2025, 8 consecutive quarters of solid performance, and it's also showing up in our share. Even in a dynamic consumer environment, we have driven share gains in 2/3 of our key category country sells. And a key differentiator for us is driving to best product and the lowest cost. We want both. We're focusing on driving to the lowest cost with 3 key pillars: value stream simplification, optimizing our global network and scalable automation. And those pillars are delivering. We've had 2 years in a row of 6% productivity. We're 50% of the way towards our $3 billion productivity commitment, and that's well ahead of schedule. And we have strong visibility to our future delivery. And we've done it all while improving product performance and dramatically increasing the pace and the quality of our innovation. These capabilities are going to drive about 1/3 of the cost synergies we expect to deliver from the Kenvue acquisition. And we're driving this approach in North America. Our new mega plant in Warren, Ohio will serve as a productivity engine capable of delivering best-in-class throughput, enhanced product performance and significantly lower unit costs. We're going to cut miles on the road by 22%, reduce the number of DCs we have, double the volume we're directly shipping to our customers and dramatically improving our automation and therefore, our converting costs. And we've got visibility here again to a consistent stream of strong productivity gains in the years to come. Let me bring this idea of best product at lowest cost to life with an example, and that would be Vietnam, already a relatively sizable but fast-growing market for us. Our local team was faced with increased competition from Chinese OEMs, and they were targeting growth amongst value-seeking consumers with offerings at significantly lower prices than our premium Huggies products. So we assembled a cross-functional team of experts to leverage the best of KC and build a solution. And in just 5 months, we launched a high-performing diaper under the Sweety brand, and we believe we now are the lowest cost producer. In fact, we were able to create a 25% converting cost advantage versus those Chinese OEMs by leveraging our global capabilities, but also high-speed automation. So the result, a $0.07 diaper that is preferred by 2/3 of consumers and most importantly, at attractive margins because of that cost position. And in the marketplace, Vietnam gained 50 basis points of share in the fourth quarter in part due to that activity. So we're really excited about the potential to replicate this concept of best product at the lowest cost across the world, and we can't bring -- wait to bring that mentality to Kenvue. So that growth in cost work is enabling us to reinvest a portion of those savings and impact to drive the cycle. So for A&P, Advertising and Promotion, that means we invested $150 million more per year than just a few years ago. And we're accelerating our capital investments as well to approximately $1.3 billion in 2026 to support our growth and transformation plans. And these investments, they're paying off. They're helping us drive the results that you're seeing today. Just as importantly, our Powering Care operating model has wired our teams together with a shared mindset of speed, accountability and collective agility. And that model also is a key driver of the momentum you're seeing. Now this matrix structure chart, you may look at it and say, this looks like everyone else's. But the key driver of its effectiveness is the market-oriented way we run it. Our markets own the business end-to-end and are empowered to be locally agile. And the role of those functions is to bring KC's best capabilities to the markets at speed to help them win. The goal is to bring global might to the local fight. The 2 best examples of this are our 2 biggest markets, North America and China, and they strengthen each other. The real unlock with Powering Care has been creating less friction for ideas to move between the 2 at pace and then scaling them throughout the rest of the world. China's digital and content commerce playbook is now flowing into North America, while North America's retail partnership approach and premium innovation and execution capabilities are being leveraged across IPC. Over the last several years, we've transformed our North America business from a cash generator to an engine for growth. And we did it with 4 key actions. First, we invested heavily in improving innovation. We tripled our forward-looking innovation funnel, and we strengthened our consumer value propositions in every price tier. Second, we invested in building an advantaged digital engagement capability in North America, leveraging and adapting some of those capabilities from China. And third, we built a world-class commercial execution engine, transforming our retailer partnerships and dramatically strengthening our modern marketing capabilities, especially in the areas of creative and social. And last, we improved our margins through stepped-up productivity, revenue growth management and premiumization. So since 2021, North America has delivered a 3% organic sales CAGR with consistent volume plus mix growth, improved our operating margins by 300 basis points, all while increasing that marketing investment by 33%. We gained or held volume share in 7 of 8 categories in the year of 2025. And we're leading the industry with 3 consecutive years ranked #1 in the Advantage retailer survey, and I believe the best is yet to come. China continues to be proof that our scalable proven model works even in the most competitive market in the world. Over the last decade, we've doubled revenue and tripled gross profit, and we have built an advantaged digital capability. Our e-commerce share today is more than 2x our brick-and-mortar business. And we've sustained incredible brand performance despite the very difficult competition. Huggies share is up more than 890 basis points and Kotex share is up roughly 260 basis points since 2019. And those gains came from a strategy with 4 key elements: a compelling consumer promise, science-powered innovation at pace, best-in-class digital engagement, and a premiumization engine that's fully integrated with the business model. And this is scalable. It's not just a China or U.S. story. We're now lifting the elements of these capabilities into other priority markets to accelerate our growth. As you can see from the left-hand chart, across our international markets, we saw a meaningful sequential organic growth acceleration last year. And on the right-hand side, we gained weighted average share across both focus and enterprise markets with accelerating momentum across the year. And the share gains are broad-based and they're being driven by the playbook. As you can see, many, many markets are delivering strong gains despite tough competition. And these elements are somewhat plug and play and can be leveraged by Kenvue as well across the world. Our pending acquisition of Kenvue is a really unique and exciting opportunity. Our integration machine is up and running. We have a global integration management office that's a blend of talent from both companies about 50-50 with over 30 work streams currently operating globally. The acquisition was overwhelmingly approved by shareholders of both companies with well over 96% of the Kimberly-Clark shareholders voting yes, and we've secured regulatory clearance in the U.S. and we remain on track to close in the second half of 2026. And we're using that time to drive to deliver $2.1 billion in total net synergies. Beyond the normal G&A synergies you might expect, we see future value creation coming from 3 big buckets. First, supply chain. And this is going to include all sorts of things like consolidating distribution to better fill trucks and ship more directly to our customers. And we think there's great opportunities here as well to take the proven 3 pillars I just talked about and apply them to Kenvue. The second big bucket, SG&A. We see opportunities in commercial spending optimization and scaling our functions and optimizing our joint IT landscape to deliver even more value. And we're really, really excited about the growth opportunities. I'll just give one example, India. Kenvue has the potential to quadruple our distribution in the traditional trade. And we see similar distribution-based opportunities in Mexico, Indonesia, Brazil, the United States, Eastern Europe and many more. And we believe we can leverage many of the capabilities we've talked about earlier today within Kenvue to accelerate growth. For example, our top-rated sales team in North America or our digital commerce capabilities. We're also being deliberate about what we're doing because we want to make sure that we stay focused on where the value is. We're being very choiceful about prioritization and sequencing to focus on the places where there's real tangible value. So in summary, we built a company that knows how to execute with speed, discipline and accountability. And we have the will and the capabilities and the operating model to drive that into results. And you're seeing it in our performance today, and you're going to see it in the way we integrate and scale Kenvue upon closing the transaction. And I believe we're still in the early innings of what this organization delivered. Thanks, Mike. I'll hand it back to you.

All right. Thank you. Okay, thank you, Russ. All right. For more than 150 years, we've delivered essential everyday care to improve the lives of our valued consumers. So today, we're better positioned to carry that out that mission than at any time in our company's history. Powering Care has created a virtuous cycle of value creation driven by an innovation-led volume and mixed growth model, industry-leading productivity and an organization wired for local agility, global scale and speed. Our acquisition of Kenvue builds on our successful transformation. And together, we will be a preeminent consumer health and wellness company, serving billions of consumers around the world across every stage of life. We'll be there for more moments of connection, delivering more innovation and growing Brand Love while delivering generational enhancement of shareholder value. So thank you for your time and interest in Kimberly-Clark.

Thanks, everybody, for joining us. We invite you to join us outside for lunch where we'll have management there for you all to grow.