Business
Karat Packaging Reports 2024 Second Quarter Financial Results
CHINO, Calif., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) (“Karat” or the “Company”), a specialty distributor and manufacturer of
About this update from Karat Packaging Inc.
[{"type":"text","content":"CHINO, Calif., Aug. 08, 2024 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) (“Karat” or the “Company”), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced financial results for its 2024 second quarter ended June 30, 2024. Second Quarter 2024 Highlights Net sales of $112.6 million, versus $108.7 million in the prior-year quarter.Gross profit of $43.4 million, versus $41.9 million in the prior-year quarter.Gross margin of 38.5 percent, equal to that of the prior-year quarter.Net income of $9.2 million, versus $10.7 million in the prior-year quarter.Net income margin of 8.2 percent, versus 9.8 percent in the prior-year quarter.Adjusted EBITDA of $15.7 million, versus $21.1 million in the prior-year quarter.Adjusted EBITDA margin of 13.9 percent, versus 19.4 percent in the prior-year quarter. 2024 Guidance Net sales for the 2024 third quarter expected to increase by mid to high single digits from the prior-year quarter.Gross margin for the 2024 third quarter expected to be 38 to 39 percent versus 36.9 percent for the prior-year quarter.Net sales for the 2024 full year expected to increase by mid-single digits from the prior year.Gross margin goal for the 2024 full year expected to be 38 to 40 percent versus 37.7 percent from the prior year. “Our business pipeline continues to expand, with the signing of new national and regional chain accounts. During the second quarter, however, initiation of certain new orders took longer than anticipated, due, in part, to administrative set-up procedures at a number of the larger chain accounts and softer demand in certain categories, which we do not expect either to recur in the second-half of the year,” said Alan Yu, Chief Executive Officer. “Net sales for the second quarter rose by 3.5 percent, even with approximately 6.4 percent lower prices, compared with last year. “We were pleased that gross margin remained steady, despite pressure from significantly higher ocean freight costs, which spiked in mid-May and remained high through July. Freight costs have since started to moderate. “Our strategic initiative established last year to expand Karat’s warehouse footprint in new geographic markets and enlarge existing warehouses is paying off and contributing to business growth across most of our sales chan...