Mississauga (ON), August 13, 2024 - KP Tissue Inc. (KPT) (TSX: KPT) reports the Q2 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 12.7% interest in Kruger Products.
Kruger Products Q2 2024 Business and Financial Highlights
- Revenue was $509.8 million in Q2 2024 compared to $466.3 million in Q2 2023, an increase of $43.5 million or 9.3%.
- Adjusted EBITDA1 was $65.3 million in Q2 2024, compared to $55.0 million in Q2 2023, an increase of 18.6%.
- Net income was $10.6 million in Q2 2024 compared to $14.5 million in Q2 2023, a decrease of $3.9 million.
- Declared a quarterly dividend of $0.18 per share to be paid on October 15, 2024.
“We delivered as per our expectations in the second quarter of 2024 with revenue-driven profitability generating more than $65 million in Adjusted EBITDA,” stated KP Tissue’s Chief Executive Officer, Dino Bianco. “In the Consumer segment, we brought added innovation and capacity to the Canadian facial tissue market to build our leadership status with 42.8% share, while maintaining our No. 1 and No. 2 positions in the bathroom tissue and paper towel categories, respectively. We also continued growing our Away-from-Home business on the strength of increased sales and Adjusted EBITDA year-over-year and sequentially. We are pleased with the strong momentum across all our business units, both in Canada and the U.S., despite a labour disruption at our Crabtree, Quebec facility that has since been resolved with a five-year collective bargaining agreement.”
“From a margin management standpoint, we recently announced a pricing increase in our Consumer segment to mitigate escalating pulp prices that are approaching peak levels. This pricing adjustment, along with other productivity initiatives will ensure we continue to drive profitable growth,” Mr. Bianco concluded.
Source: KP Tissue
