Business
Karat Packaging Reports 2021 Third Quarter Financial Results
Net Sales Increase 35 Percent Over Prior Year and 43 Percent, Excluding Sales of PPE-Related Products CHINO, Calif., Nov. 11, 2021 (GLOBE NEWSWIRE) -- Karat
About this update from Karat Packaging Inc.
[{"type":"text","content":"Net Sales Increase 35 Percent Over Prior Year and 43 Percent, Excluding Sales of PPE-Related Products\nCHINO, Calif., Nov. 11, 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 third quarter ended September 30, 2021. Third Quarter 2021 Highlights Net sales of $102.7 million, up 34.6 percent from same period last year.Net sales, excluding personal protective equipment (PPE) sales, rose 43.2 percent over prior year period.Gross profit of $29.8 million, compared with $23.0 million a year ago and $28.1 million in the 2021 second quarter. Fourth Quarter and Full Year 2021 Outlook Net sales in the 2021 fourth quarter expected to be $93 million to $96 million, compared with $70.4 million a year ago.Net sales in the 2021 full year expected to be $366 million to $369 million, compared with $295.5 million in 2020. Alan Yu, chief executive officer, said, “Results for the 2021 third quarter reflect robust demand and our ability to provide new products to a diverse and expanding customer base. Sales increased at a strong rate, led by our distributor, online and national channels. Excluding PPE products that we sold in last year’s third quarter during the height of the COVID-19 pandemic, top-line growth was 43 percent. Sales also were somewhat constrained by inventory shortages resulting from tight labor conditions and port delays in the third quarter. “The sales increase was partially offset by freight and shipping costs that continued to rise internationally during the third quarter. Freight costs have begun to ease in the fourth quarter but remain at elevated levels compared with last year. We continue to successfully and proactively increase prices to pass on these higher costs and protect our margins. “As a result of ongoing favorable market trends, we’re currently targeting net sales to be in the range of $93 million to $96 million for the 2021 fourth quarter, which we expect will lead to full year sales in the range of $366 million to $369 million. In addition, the expected growth in our high-margin online channel and our efforts to pass on higher freight and shipping costs give us confidence in our ability to continue to protect our gross margin.” Mr. Yu adde...