Business
Karat Packaging Reports Fourth Quarter and Full Year 2021 Financial Results
– Fourth Quarter Net Sales Grew Nearly 30 Percent;Net Income Increased More than Three-Fold – CHINO, Calif., March 23, 2022 (GLOBE NEWSWIRE) -- Karat
About this update from Karat Packaging Inc.
[{"type":"text","content":"– Fourth Quarter Net Sales Grew Nearly 30 Percent;Net Income Increased More than Three-Fold – CHINO, Calif., March 23, 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 the fourth quarter and full year ended December 31, 2021. Fourth Quarter 2021 Highlights Net sales of $91.3 million, up 29.8 percent from the prior-year quarter.Gross profit of $28.3 million, up 46.7 percent from the prior-year quarter.Gross margin of 31.0 percent, an improvement of 360 basis points over the prior-year quarter.Net income of $6.0 million, up more than three-fold over the prior-year quarter.Net income margin of 6.5 percent, an improvement of 420 basis points over the prior-year quarter.Adjusted EBITDA margin of 11.9 percent, up 550 basis points from the prior-year quarter. 2022 Outlook Net sales for the 2022 first quarter: in the range of $101 million to $103 million, compared to $75.7 million for the 2021 first quarter.Gross margin for 2022 full year: goal of 31 percent to 32 percent on average.Net sales growth for 2022 full year: 17 percent to 19 percent. Alan Yu, chief executive officer, said, “We delivered record results for the 2021 fourth quarter and continued margin expansion, despite ongoing global supply chain challenges and tight labor conditions and delays in certain shipments to customers from December to January due to inventory shortages resulting from port congestion. “We are continuing to grow wallet share with our existing customers, while also expanding our customer base and providing new, innovative product offerings. Our online business grew solidly, as we made ongoing investments in this important channel. Additionally, our distributors channel and national and regional chains posted very strong results, with the addition of more than 50 new national and regional restaurant chain accounts for the year. Importantly, with continued focus on the growth of our higher margin channels and products and the improvement in operating efficiencies, we achieved our gross margin target of 31 percent for the fourth quarter. “Our strong business momentum is continuing into 2022. The foodservice sector is experiencing steady increases in consumer spending, and demand...