Strong performance while positioning for anticipated headwinds
MISSISSAUGA, Ontario, May 14, 2024 - KP Tissue Inc. (KPT) (TSX: KPT) reports the Q1 2024 financial and operational results of KPT and Kruger Products Inc. (Kruger Products). Kruger Products is Canada's leading manufacturer of quality tissue products for the Consumer market (Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and BonterraTM) and the Away-From-Home (AFH) market and continues to grow in the U.S. Consumer tissue business with the White Cloud® brand and premium private label products. KPT currently holds a 12.8% interest in Kruger Products.
Kruger Products Q1 2024 Business and Financial Highlights
- Revenue was $479.4 million in Q1 2024 compared to $451.0 million in Q1 2023, an increase of $28.4 million or 6.3%.
- Adjusted EBITDA1 was $67.1 million in Q1 2024, compared to $50.0 million in Q1 2023, an increase of 34.3%.
- Net income was $9.0 million in Q1 2024 compared to a loss of $49.3 million in Q1 2023, an improvement of $58.3 million.
- Declared a quarterly dividend of $0.18 per share to be paid on July 15, 2024.
- Facial tissue line in the Sherbrooke Expansion Project started up successfully in February 2024.
- Announced a 25% increase in facial production at the Gatineau plant on March 5, 2024 with a $14.5 million investment.
“We delivered strong financial results in the first quarter of 2024, highlighted by increased sales volume and Adjusted EBITDA of $67.1 million,” stated KP Tissue’s Chief Executive Officer, Dino Bianco. “In our Consumer segment, we continued to build on our leadership position in facial tissue following the grocery exit of Kleenex in Canada through incremental marketing, added manufacturing capacity and product innovation. We also invested in brand support to drive awareness and share gains in our bathroom tissue and paper towel categories. Our Away-From-Home business maintained its recovery curve in the first quarter with robust growth in profitability, both year-over-year and sequentially, combined with solid sales growth.”
“Looking ahead to the remainder of 2024, we will continue to take a multi-faceted approach to drive profitable growth. Given anticipated headwinds in commodity markets, we are preparing an action plan to mitigate escalating pulp prices,” Mr. Bianco concluded.
Source: KP Tissue
