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Summary
- With the count of COVID-19 cases continuing to soar, price surges of tissue items seem to be making a comeback.
- Kimberly-Clark Corporation (NYSE:KMB, KMB:US) announced on Wednesday that it will be increasing the prices of most of its products in the US and Canadian markets.
- Following the announcement, Kimberly-Clark saw its stock move up by about a per cent on Wednesday.
Panic and bulk-buying in the wake of the coronavirus outbreak last year had seen demand for basic necessity products like toilet paper, sanitary napkins, diapers, etc go through the roof. With the count of COVID-19 cases continuing to soar, price surges of such items seem to be making a comeback.
Kimberly-Clark Corporation (NYSE:KMB, KMB:US), one of the top tissue producers in the world, announced on Wednesday, March 31, that it will be increasing the prices of most of its products in the US and Canadian markets.
Following the announcement, Kimberly-Clark saw its stock move up by about a per cent on Wednesday.
What Did Kimberly-Clark Say?
The paper-based consumer goods maker, which comes with a roughly 149 years of history, manufactures brand name products such as Kotex, Scott toilet paper, Kleenex, Huggies, etc.
In its latest release, the company said that it is raising prices to balance the “significant commodity cost inflation”. These price hikes are set to affect business segments pertaining to baby and child care products, adult care items and Scott tissue paper.
Source: Pixabay
Kimberly-Clark added that the prices will see percentage jumps in mid-to-high single digits, which will mostly take effect in June 2021.
How Are Tissue Product Stocks Doing?
While tissue products saw a massive surge in demand after the onset of the pandemic in March 2020, Kimberly-Clark stock recorded a growth of about nine per cent in the last one year. This year, it grew a little over three per cent.
Stocks of Procter & Gamble Co (NYSE:PG, PG:US), the maker of Charmin bathroom tissues, climbed about 23 per cent over the past year while recording a decline of nearly three per cent year-to-date (YTD).
Kruger Products (TSX:KPT), which is one of the top tissue manufacturers in Canada, saw its shares rise a little over 14 per cent in one year and by about one per cent YTD.
©Kalkine Group 2021
In the wake of the latest announcement, some market analysts have even projected that Kimberly-Clark may not be the only one in the tissue paper industry to resort to price hikes.
Toilet-paper makers are reportedly facing a major challenge in production due the rising cost of lumber, which, in turn, is fueling a prices of pulp – a key ingredient in paper products. With the price of raw materials climbing and the demand for the end products going up as well, tissue products are likely to be majorly impacted.
- With the count of COVID-19 cases continuing to soar, price surges of tissue items seem to be making a comeback.
- Kimberly-Clark Corporation (NYSE:KMB, KMB:US) announced on Wednesday that it will be increasing the prices of most of its products in the US and Canadian markets.
- Following the announcement, Kimberly-Clark saw its stock move up by about a per cent on Wednesday.
Panic and bulk-buying in the wake of the coronavirus outbreak last year had seen demand for basic necessity products like toilet paper, sanitary napkins, diapers, etc go through the roof. With the count of COVID-19 cases continuing to soar, price surges of such items seem to be making a comeback.
Kimberly-Clark Corporation (NYSE:KMB, KMB:US), one of the top tissue producers in the world, announced on Wednesday, March 31, that it will be increasing the prices of most of its products in the US and Canadian markets.
Following the announcement, Kimberly-Clark saw its stock move up by about a per cent on Wednesday.
