Nelson Urdaneta
Chief Financial Officer at Kimberly-Clark
Thanks, Mike. We delivered another quarter of strong results across the Company. Net sales were $5.1 billion, up 2% versus last year. Organic sales increased 5% led by high-single-digit growth in the Personal Care segment and in North America. Volume improved sequentially for the third quarter in a row to minus 1%. While price realization was 5% and mix contributed one point of growth.
Currency negatively impacted net sales by approximately 200 basis points. The exit of our Brazil tissue business had an additional impact of 100 basis points, primarily on Consumer Tissue and our Professional business.
Let me spend a few minutes on each of our segments. First, Personal Care, organic sales increased 7% this quarter. Price realization drove four points of growth and mix contributed 1%. Volume turned positive for the first time in five quarters with an increase of 2%. North America and developing and emerging markets, organic sales grew in the high single-digits, with volume increases in North America. Developed markets grew low-single digits. Within Personal Care, each of our subcategories grew high single-digits. Operating margin for the segment improved 250 basis points versus year ago driven by gross margin improvement, while we continue to increase our investments in our brands.
Second, organic growth in Consumer Tissue was 2%. Within Consumer Tissue, North America delivered 4% organic growth driven by healthy demand in dry bath and towels. Outstanding results from the U.K. drove 2% growth in the developed markets, on top of last year's 11% increase. Operating margin for the segment was up 320 basis points versus year ago, driven by revenue growth management and improved service levels.
Finally, our K-C Professional business posted 4% organic growth despite challenging comparisons against last year. On a two-year average, organic sales growth was 7%. Demand for our washroom business remains healthy and new commercial programs drove share gains in North America. Strong revenue realization was partially offset by lower volumes, which were partly driven by the timing of select planned price adjustments. Operating margin for Professional improved by 550 basis points, which was broadly in line with the first half of 2023.
Turning to the rest of the P&L. Third quarter gross margin increased 530 basis points to 35.8%. Revenue growth management, input cost tailwinds and about $90 million in FORCE savings more than offset other manufacturing costs and currency headwinds. The cost environment remains mixed with favorability in raw materials, offset by higher energy prices, currency headwinds and higher labor costs. Other manufacturing costs were $30 million higher than last year.
Between the lines [Phonetic] spending was 20.7% of net sales, up 310 basis points versus year ago reflecting year-on-year inflation and investments in our brands, our people and our capabilities. These results also reflect higher year-on-year incentive compensation accruals.
Operating profit for the quarter increased 18% and operating margin improved by 210 basis points to 15.1%. This includes a currency headwind of $135 million or a 21 percentage point profit impact of which four points were due to the translation of earnings from non-U.S. operations and the balance was largely driven by transactional costs.
Lastly, the adjusted effective tax rate for the quarter was 22.5% in line with last year's 22.3%. Our operating results, coupled with lower net interest expense and gains in equity income drove a 24% growth in adjusted earnings per share to $1.74 in the third quarter.
Turning to balance sheet and cash flow highlights. Through the first nine months of the year, we generated $2.3 billion in cash flow from operations. Capital spending was $549 million compared to $679 million last year. We expect to end the year with capex of approximately $800 million. Year-to-date, we returned $1.3 billion to shareholders through dividends and share repurchases.
Now, let me say a few words about our outlook. Based on our strong results, we are raising our full year guidance. We now expect organic sales growth of 4% to 5% and net sales growth of 1% to 2%, reflecting the impact of unfavorable currency and divestitures. We also now expect adjusted earnings per share growth of 15% to 17%. Currency headwinds continue to worsen given the recent strengthening of the U.S. dollar against the Argentina peso and other key currencies.
Based on recent currency forward curves, we are projecting that currency will have a negative top line impact of approximately 300 basis points and a bottom-line headwind of approximately $450 million up from our previous assumption of $300 million to $400 million for the year.
On input costs, we now expect headwinds of approximately $50 million versus the previous outlook of $100 million. Other manufacturing costs are now expected to increase by approximately $250 million compared to $200 million in our prior outlook.
With gross margins returning to pre-pandemic levels in the quarter, we remain focused on driving cost discipline and productivity to create more fuel for growth. For the full year, we project FORCE to deliver a $300 million to $350 million, reflecting favorable results from ongoing negotiations of our materials purchases.
Continued progress in gross margin recovery, puts us in a great position to advance our commercial programs, and we continue to expect advertising spend to increase by approximately 100 basis points for the full year. Overall, we now expect operating margins to increase 170 basis points at the midpoint of our guidance compared to an increase of 150 basis points in our July guidance.
Below-the-line, net interest expense is expected to decline in the high single-digits. We have also updated our assumption for adjusted tax rate to 23% to 24%. These improvements result in our full year outlook for adjusted earnings per share growth of 15% to 17%.
In closing, while we continue to operate in a volatile environment, we remain focused on executing our growth strategy, including continued investments in our brands and capabilities for long-term value-creation.
With that, we will open the floor for questions.
