Kimberly-Clark cuts annual forecasts as China quality claims hurt diaper sales

By Neil Kanatt and Alexander Marrow
Reuters
August 4, 2026
Category: Business & Politics
Region: United States

Kimberly-Clark cut annual sales and profit forecasts on Tuesday and said false claims about its ‌diaper quality in China will continue to be a problem after hurting second-quarter sales. The Kleenex maker cited independent testing by a government-certified third party to refute Chinese social media claims that its Huggies diapers contained formamide. Chinese media ​reported in June that Huggies and two Chinese brands Babycare and ​Bibabebe tested positive for the toxic substance that can irritate the skin, eyes and breathing ⁠if inhaled. …The China hit overshadowed broader progress in Kimberly-Clark’s cost-saving and transformation ​efforts, adding another challenge to the company, which, like its peers, is grappling ​with meeting the ⁠needs of financially stretched consumers. Last month, Kimberly-Clark finalized a 51% stake sale in its international tissue business ⁠to Suzano, ​creating the $3.4 billion Arbex joint venture to compete with rivals Procter & Gamble and ​Essity.

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