Business
Karat Packaging Reports Fourth Quarter and Full Year 2023 Financial Results
Record Full Year Gross Margin and Net Income as Business Continues to Expand CHINO, Calif., March 14, 2024 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq:
About this update from Karat Packaging Inc.
[{"type":"text","content":"Record Full Year Gross Margin and Net Income as Business Continues to Expand\nCHINO, Calif., March 14, 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 fourth quarter and full year ended December 31, 2023. Fourth Quarter 2023 Highlights Fourth quarter 2023 financial results included: Change of estimate on import duty reserve totaling $2.3 million, an increase to cost of goods sold.Write-off of $1.1 million of a vendor prepayment upon the resolution of a legal contingency, an increase to general and administrative expenses.Out-of-period tax adjustment of $0.3 million, an increase to provision for income taxes.Misclassification adjustments for the full year amounts within the income statement with no impact on net income: Adjustment of $6.4 million online sales platform fees, an increase to net sales, offset by the same increase to selling expenses.Adjustment of $3.9 million of certain production expenses out of general and administrative expenses into cost of goods sold. The prior period financial results were not adjusted due to the immaterial impact on the overall financial statements. Net sales of $95.6 million, including the adjustment of $6.4 million online sales platform fees, versus $92.7 million in the prior-year quarter, up 3.1 percent in amount and 7.3 percent in volume.Gross profit of $34.1 million, including the favorable impact totaling $0.2 million from the import duty reserve and the adjustments, up 14.9 percent from the prior-year quarter.Gross margin of 35.7 percent, including the negative impact totaling 240 basis points from the import duty reserve and adjustments, versus 32.0 percent in the prior-year quarter.Net income of $4.2 million, including the negative impact totaling $2.9 million from the import duty reserve, vendor prepayment write-off, and tax adjustment, versus $4.5 million in the prior-year quarter.Net income margin of 4.4 percent, including the negative impact totaling 350 basis points from the import duty reserve, vendor prepayment write-off, tax adjustment and the adjustments, versus 4.9 percent in the prior-year quarter.Adjusted EBITDA of $8.6 million, including the negative impact totaling $2.3 ...