Strong profitability with Memphis investment to drive efficiency and support growing U.S. business
MISSISSAUGA, Ontario, Aug. 13, 2025 - KP Tissue Inc. (KPT) (TSX: KPT) reports the Q2 2025 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 Bonterra®) 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 12.2% interest in Kruger Products.
Kruger Products Q2 2025 Business and Financial Highlights
- Revenue was $536.1 million in Q2 2025 compared to $509.8 million in Q2 2024, an increase of $26.3 million or 5.2%.
- Adjusted EBITDA1 was $72.5 million in Q2 2025 compared to $65.3 million in Q2 2024, an increase of 11.0%.
- Net income was $22.1 million in Q2 2025 compared to $10.6 million in Q2 2024, an increase of $11.5 million.
- Declared a quarterly dividend of $0.18 per share to be paid on October 15, 2025.
“We are pleased with our overall performance in the second quarter of 2025 with Adjusted EBITDA improving 11% year-over-year to $72.5 million,” stated KP Tissue’s Chief Executive Officer, Dino Bianco. “U.S. revenue growth slowed down in Q2 2025 due to front-loaded shipments made during the previous quarter to mitigate potential tariffs, along with softness in the AFH market. Nevertheless, U.S. sales have grown 12% after six months into 2025 and represent a key growth driver for Kruger Products.
“In early July, we announced an additional investment of approximately US$35 million at our Memphis manufacturing facility to deploy a state-of-the-art, multi-purpose converting line for bathroom tissue and paper towels. This initiative is part of a broader strategy to drive efficiency and support our growing U.S. business,” Mr. Bianco added.
