Business
Karat Packaging Reports 2021 Second Quarter Financial Results
Net Sales Advance 11.6 Percent Over Prior Year and 69.4 Percent, Excluding Last Year’s Sales of PPE-Related Products CHINO, Calif., Aug. 12, 2021 (GLOBE
About this update from Karat Packaging Inc.
[{"type":"text","content":"Net Sales Advance 11.6 Percent Over Prior Year and 69.4 Percent, Excluding Last Year’s Sales of PPE-Related Products\nCHINO, Calif., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced financial results for its 2021 second quarter ended June 30, 2021. Second Quarter 2021 Recent Highlights Net sales of $94.5 million, up 11.6 percent from same period last year.Net sales, excluding personal protective equipment (PPE) sales, rose 69 percent over prior year period.Gross profit of $28.1 million, compared with $28.9 million a year ago and $21.6 million in the preceding first quarter.Gross margin of 29.7 percent versus 34.1 percent in the same period last year, and 28.6 percent in the 2021 first quarter.Acquired a warehouse building and added a distribution facility in South Carolina. Third Quarter 2021 Outlook Net sales expected to increase to $100 million to $102 million. Alan Yu, chief executive officer, said, “Results for the 2021 second quarter continued to reflect strong demand, as well as our nimbleness as a supplier of customized solutions and our ability to provide new products to a diverse and expanding customer base. Sales exceeded expectations and increased at a double-digit pace, paced by our national, online and distributors channels. Excluding PPE products that we primarily sold in last year’s second quarter during the height of the COVID-19 pandemic, top-line growth was nearly 70 percent. “The strong increase in sales was partially offset by freight, material and shipping costs that continued to rise throughout the globe during the second quarter. We quickly and proactively were able to increase prices to pass on these higher costs and protect our margins; as a result, our gross margin improved 110 basis points sequentially. “Market trends remain favorable and are continuing, as more restaurants and foodservice outlets open. As a result, we’re currently targeting net sales to be in the range of $100 million to $102 million for the third quarter. In addition, expected growth in our high-margin online channel and our efforts to pass on higher freight and shipping costs gives us confidence in our ability to improve gross margin, compared to the first and second quarters o...