Kp Tissue, Inc. · TSX:KPT
Kp Tissue — Q4 2024 Earnings Presentation
24 slides from Kp Tissue's earnings presentation, Mar 5, 2025
Slide 1: Q4 2024 Financial Results
Q4 2024 FINANCIAL RESULTS March 5, 2025
Slide 2: Forward-Looking Statements
F O R W A R D - LO O K I N G S TAT E M E N T S Certain statements in this presentation about KPT's and Kruger Products’ current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward
Slide 3: Corporate Structure
C O R P O R AT E S T RU C T U R E 100% 1 87.5% 12.5% 1As of March 5, 2025 3
Slide 4: Our Vision
OUR VISION TO BE THE MOST TRUSTED AND BEST LOVED TISSUE COMPANY IN NORTH AMERICA. 4/4 || . Bonterra r MAKING EVERYDAY LIFE MORE COMFORTABLE. » @KP
Slide 5: 5 Underlying Strategies
5 U N D E R LY I N G S T R AT E G I E S Drive Strong Revenue, Profit and Shareholder Value in a Sustainable Manner 1 2 3 4 5 Consumer As Our Expand Our End-to-End Supply Deliver Winning Team & Compass Business Footprint Chain Excellence Sustainability Culture 5
Slide 6: Q4 2024 Highlights
Q4 2024 HIGHLIGHTS Revenue Adjusted EBITDA1 Net Loss $539.6M $66.8M ($13.7)M 11.9% 9.2% ($30.2)M over Q4 2023 over Q4 2023 over Q4 2023 $16.5M $40.8M over Q4 2023 over Q4 2023 +6.0% +19.7% Revenue Canada Revenue U.S. 1 Non-GAAP measure – see MD&A for the definition and reconciliation of the most com
Slide 7: FY 2024 Highlights
FY 2024 HIGHLIGHTS Revenue Adjusted EBITDA1 Net Income $2,049.9M $264.8M $23.8M 9.4% 11.0% $29.1M over FY 2023 over FY 2023 over FY 2023 $50.4M $126.5M over FY 2023 over FY 2023 +4.7% +15.7% Revenue Canada Revenue U.S. 1 Non-GAAP measure – see MD&A for the definition and reconciliation of the most c
Slide 8: Pulp Input Prices
PULP INPUT PRICES Q4 2024 NBSK average prices1 in CAD decreased 1.8% and BEK average prices1 were down 10.9% from Q3 2024. Q4 2024 NBSK average prices1 in CAD grew 32.1% and BEK average prices1 rose 22.9% year-over-year. After market pulp prices2 dropped sequentially in Q4 2024, industry analysts ex
Slide 9: Operations
OPERATIONS • Overall production rates reached 2024 target, and North American demand remains strong • New paper machine and new facial assets exceeded 2024 production targets and continue to perform well • Solid market demand for facial tissue continues • TAD Memphis paper machine and converting out
Slide 10: Capacity Outlook
CAPACITY OUTLOOK • After successful start-up of the new Sherbrooke tissue plant, evaluating construction of the next tissue plant • Proposed new plant would contain state-of-the-art TAD paper machine and three converting lines • Supports continued focus on growing the business, protecting market sha
Slide 11: Focused Brand Support
FOCUSED BRAND SUPPORT • Investing and expanding Made in Canada positioning • Activating Scotties Tournament of Hearts campaign • Record engagement at 21st Cashmere Collection enhanced with live streaming and first-ever live voting • Solid brand equity campaigns for Sponge Towels, Scotties, and Cashm
Slide 12: Brand Leadership Position
BRAND LEADERSHIP POSITION Bathroom Tissue Facial Tissue Paper Towel #1 #1 #2 32.1% 45.0% 24.0% 13.7% 19.6% 9.2% 12.2% 0.5% 33.8% 36.9% 34.6% 45.0% 24.5% 24.0% 33.2% 32.7% 32.1% 35.7% 36.0% 38.9% 21.8% 24.0% 22.4% 31.5% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Source
Slide 13: AFH Segment
AFH SEGMENT • Sales volume down slightly from Q4 2023 and prior quarter • Continued strong orders, coupled with challenges in paper supply, hampered order fulfillment • Sherbrooke paper machine will provide internal paper and reduce external requirements • Rebranding AFH to Kruger PRO and leveraging
Slide 14: Quarterly Financial Summary
Q UA R T E R LY F I N A N C I A L S U M M A RY % Change (Million CAD$, unless otherwise noted) Q4 2024 Q3 2024 Q4 2023 Y/Y Q/Q Revenue 539.6 521.1 482.3 11.9% 3.6% Cost of Sales 459.3 437.3 400.5 14.7% 5.0% Gross Profit 80.3 83.8 81.8 (1.8)% (4.2)% Gross Margin 14.9% 16.1% 17.0% Adjusted EBITDA1 66.
Slide 15: Quarterly Segmented Results
Q UA R T E R LY S E G M E N T E D R E S U LT S % Change (Million CAD$, unless otherwise noted) Q4 2024 Q3 2024 Q4 2023 Y/Y Q/Q Segment Revenue Consumer 452.7 429.2 400.9 12.9% 5.5% AFH 86.9 91.9 81.4 6.8% (5.4)% Total Segment Revenue 539.6 521.1 482.3 11.9% 3.6% Segment Adjusted EBITDA1 Consumer 64.
Slide 16: Q4 2024 Revenue Compared to Q4 2023
Q 4 2 0 2 4 R E V E N U E C O M PA R E D TO Q 4 2 0 2 3 Increase primarily due to: $57.3M • Higher sales volume Q4 2024 Revenue increase • Favourable selling prices in Canada • Positive FX impact on U.S. dollar sales 11.9% over Q4 2023 Geographic revenue segmentation $16.5M $40.8M over Q4 2023 over
Slide 17: Q4 2024 Adjusted EBITDA Compared to Q4 2023
Q 4 2 0 2 4 A D J U S T E D E B I T DA 1 C O M PA R E D TO Q 4 2 0 2 3 $5.6M $66.8M in Q4 2024 compared to $61.2M in Q4 2023 Q4 2024 Adjusted EBITDA1 increase Increase primarily due to the following factors: 9.2% • Higher sales volume over Q4 2023 • Increased selling prices • Decreased marketing and
Slide 18: Q4 2024 Revenue Compared to Q3 2024
Q 4 2 0 2 4 R E V E N U E C O M PA R E D TO Q 3 2 0 2 4 Sequential increase primarily due to: $18.5M • Increase in selling prices Q4 2024 Revenue increase • Higher Consumer segment volume 3.6% • Positive FX impact on U.S. dollar sales over Q3 2024 $9.2M $9.3M over Q3 2024 over Q3 2024 +3.2% +3.9% Re
Slide 19: Q4 2024 Adjusted EBITDA Compared to Q3 2024
Q 4 2 0 2 4 A D J U S T E D E B I T DA 1 C O M PA R E D TO Q 3 2 0 2 4 $1.1M $66.8M in Q4 2024 compared to $65.7M in Q3 2024 Q4 2024 Adjusted EBITDA1 increase Sequential increase primarily due to: 1.7% • Favourable selling prices over Q3 2024 • Lower SG&A expenses • Improved sales mix Adjusted EBITD
Slide 20: Balance Sheet
BA L A N C E S H E E T (Million CAD$, unless otherwise noted) Q4 2024 Q3 2024 Q4 2023 Cash 119.5 111.2 135.7 Current Portion of Long-term Debt 54.2 169.9 35.2 Long-term Debt 1,180.5 997.5 1,034.0 Net Debt 1,115.2 1,056.2 933.5 LTM Adjusted EBITDA1 264.8 259.3 238.6 Net Debt/LTM Adjusted EBITDA1 4.2x
Slide 21: Capital Expenditures
C A P I TA L E X P E N D I T U R E S • Q4 2024 CAPEX totaled $48.1 million, $200 including $16.1 million related to the $180 Sherbrooke Expansion Project $160 $140 • Total 2024 CAPEX was $185.5 million $120 • Anticipating $40-$60 million in 2025 Millions $100 $80 CAPEX, excluding the Sherbrooke $60
Slide 22: Sustainability Focus
KEY TARGETS TO ACHIEVE BY 2030 S U S TA I N A B I L I T Y F O C U S 22
Slide 23: Driving Growth and Margins
DRIVING GROWTH AND MARGINS • Expecting continued strong growth in U.S. sales • Managing tariff disruptions, while leveraging Made in Canada consumer sentiment • Pricing expected to offset market costs • Investing in brands to drive long-term share • Sherbrooke paper machine to enable reduction of pu
Slide 24: www.kptissueinc.com
WWW.KPTISSUEINC.COM