Business
Karat Packaging Reports 2022 First Quarter Financial Results
Record Quarterly Revenue of $105.4 Million; Net Income More than Doubled CHINO, Calif., May 12, 2022 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT)
About this update from Karat Packaging Inc.
[{"type":"text","content":"Record Quarterly Revenue of $105.4 Million; Net Income More than Doubled\nCHINO, Calif., May 12, 2022 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) (“Karat”), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced financial results for its 2022 first quarter ended March 31, 2022. First Quarter 2022 Highlights Record quarterly net sales of $105.4 million, up 39.3 percent from the prior-year quarter.Gross profit of $34.3 million, up 58.6 percent from the prior-year quarter.Gross margin of 32.5 percent, an improvement of 390 basis points over the prior-year quarter, including a benefit from freight and duty capitalization.Net income of $7.9 million, more than doubled from the prior-year quarter.Net income margin of 7.5 percent, an improvement of 350 basis points over the prior-year quarter.Record first quarter adjusted EBITDA of $13.0 million, up 90.3 percent from the prior-year quarter.Adjusted EBITDA margin of 12.3 percent, up 330 basis points from the prior-year quarter. 2022 Guidance Net sales for the 2022 second quarter: $116 million to $118 million, up from $94.5 million for the 2021 second quarter.Net sales for the 2022 full year: $445 million to $449 million, versus $364.2 million in 2021.Gross margin goal for the 2022 full year: 31 percent to 32 percent on average, including expected impact from freight and duty capitalization for the remainder of 2022. “Results for our first quarter reflected excellent operational execution and sustained strong demand from existing and new customers, particularly in our environmentally friendly product lines and Karat’s Tea Zone branded products, which carry higher margins,” said Alan Yu, chief executive officer. “The positive sales performance was broad-based across all categories, including national and regional chains, distributors, online and retail channels, along with our newly expanded logistics services.” “Subsequent to the close of the first quarter, we entered into a joint venture agreement to build a 180,000-square-foot, state-of-the art automated factory in Taiwan to manufacture 100% compostable foodservice products from bagasse, a derivative of sugarcane pulp. Manufacturing is anticipated to start in the second half of 2022. The plant further demonstrates Karat’s industry leadership pos...