Business
Karat Packaging Reports 2022 Third Quarter Financial Results
– Significant Gross Margin Expansion and Record Quarterly Operating Cash Flow – CHINO, Calif., Nov. 10, 2022 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq:
About this update from Karat Packaging Inc.
[{"type":"text","content":"– Significant Gross Margin Expansion and Record Quarterly Operating Cash Flow –\nCHINO, Calif., Nov. 10, 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 third quarter and nine-months ended September 30, 2022. Third Quarter 2022 Highlights Net sales of $110.0 million, up 7.1 percent from the prior-year quarter.Gross profit of $34.2 million, up 14.7 percent from the prior-year quarter.Gross margin of 31.1 percent, increased from 29.0 percent from the prior-year quarter.Net income of $6.2 million, up 51.1 percent from the prior-year quarter.Net income margin of 5.6 percent, increased from 4.0 percent from the prior-year quarter.Adjusted EBITDA of $11.7 million, up 30.1 percent from the prior-year quarter.Adjusted EBITDA margin of 10.7 percent, versus 8.8 percent in the prior-year quarter.Record quarterly operating cash flow of $20.2 millionFinancial liquidity of $54.5 million as of September 30, 2022 2022 Outlook Net sales for the 2022 fourth quarter: $95 million to $98 million, up from $91.3 million for the 2021 fourth quarter.Gross margin goal for the 2022 full year: 31 percent to 32 percent on average. “Although net sales for the third quarter were above those of the prior year period - a particularly strong quarter due to COVID re-openings - results were impacted by customers’ destocking of certain inventory due to supply chain recovery,” said Alan Yu, chief executive officer. “Nevertheless, demand remains strong for our eco-friendly products and other offerings. Our eco-friendly products grew 26.7 percent during the quarter. “We continue to see solid gross margin improvement into the fourth quarter, further benefited from significantly lower ocean freight rates toward the end of the third quarter and the strong U.S. dollar, which is allowing us to implement some price reductions to proactively pass on savings to our customers. “Proceeding into the fourth quarter and fiscal 2023, we have implemented new initiatives to significantly grow online sales, and we are on track with our Green Earth Technology joint venture in Taiwan to start producing bagasse products at the end of 2022, with shipments to begin early in the new year.” Third Quarter 2022...