Kp Tissue, Inc. · TSX:KPT
Kp Tissue — Q2 2025 Earnings Presentation
22 slides from Kp Tissue's earnings presentation, Aug 13, 2025
Slide 1: Q2 2025 Financial Results
Q2 2025 FINANCIAL RESULTS August 13, 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 87.8% 12.2% 1As of August 13, 2025 3
Slide 4: KP Tissue Inc. Vision and Mission
KP KP Tissue Inc. OUR VISION TO BE THE MOST TRUSTED AND BEST LOVED TISSUE COMPANY IN NORTH AMERICA. OUR MISSION MAKING EVERYDAY LIFE MORE COMFORTABLE.
Slide 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: Q2 2025 Highlights
Q2 2025 HIGHLIGHTS Revenue Adjusted EBITDA1 Net Income $536.1M $72.5M $22.1M 5.2% 11.0% $11.5M over Q2 2024 over Q2 2024 over Q2 2024 $20.7M $5.6M over Q2 2024 over Q2 2024 +7.4% +2.4% Revenue Canada Revenue U.S. 1 Non-GAAP measure – see MD&A for the definition and reconciliation of the most compara
Slide 7: Pulp Input Prices
PULP INPUT PRICES Q2 2025 NBSK average prices1 in CAD increased 0.1%, while BEK average prices1 were down 1.0% from Q1 2025. Q2 2025 NBSK average prices1 in CAD grew 8.5%. In contrast, BEK average prices1 dropped 10.0% year-over-year. Industry analysts expect pulp prices to trade within a narrow ran
Slide 8: Operations
O P E R AT I O N S • Investing in Memphis facility to drive efficiency – Shut down older assets – Focused on premium products, modern equipment and on-site warehousing – Announced US$35 million investment for multi-purpose, state-of-the-art converting line with start-up scheduled for Q2 2026 • Netwo
Slide 9: Focused Brand Support
FOCUSED BRAND SUPPORT • Continued focus on Made in Canada positioning with new Cashmere and Purex campaigns and summer in-store promotions • Equity-building campaigns for Scotties, SpongeTowels, and Bonterra • Scotties’ sponsorship of Canada’s Got Talent televised program for second consecutive year
Slide 10: Brand Leadership Position
BRAND LEADERSHIP POSITION BATHROOM TISSUE FACI AL TISSUE PAPER TOWEL NO. 1 NO. 1 NO. 2 32.0% 45.1% 24.4% * Data represents Nielsen Canadian dollar market share for 52-week period ended June 14, 2025. 10
Slide 11: AFH Segment
AFH SEGMENT • Volume decreased year-over-year but increased sequentially • Profitability was down year-over-year, but up sequentially due to in-sourcing of paper from new paper machine in Sherbrooke • Launched Cashmere and Scotties brands for commercial market in June with strong response from end-u
Slide 12: Quarterly Financial Summary
Q UA R T E R LY F I N A N C I A L S U M M A RY % Change (Million CAD$, unless otherwise noted) Q2 2025 Q1 2025 Q2 2024 Y/Y Q/Q Revenue 536.1 546.1 509.8 5.2% (1.8)% Cost of Sales 462.2 451.0 431.2 7.2% 2.5% Gross Profit 73.9 95.1 78.6 (6.0)% (22.3)% Gross Margin 13.8% 17.4% 15.4% Adjusted EBITDA1 72
Slide 13: 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) Q2 2025 Q1 2025 Q2 2024 Y/Y Q/Q Segment Revenue Consumer 449.2 465.2 421.9 6.5% (3.4)% AFH 86.9 80.9 87.9 (1.1)% 7.3% Total Segment Revenue 536.1 546.1 509.8 5.2% (1.8)% Segment Adjusted EBITDA1 Consumer 6
Slide 14: Q2 2025 Revenue Compared to Q2 2024
Q 2 2 0 2 5 R E V E N U E C O M PA R E D TO Q 2 2 0 2 4 Increase primarily due to: $26.3M • Higher Consumer volume • Favourable selling prices across both segments Q2 2025 Revenue increase • Positive FX impact on U.S. dollar sales 5.2% Partially offset by: over Q2 2024 • Lower AFH volume Geographic
Slide 15: Q2 2025 Adjusted EBITDA Compared to Q2 2024
Q 2 2 0 2 5 A D J U S T E D E B I T DA 1 C O M PA R E D TO Q 2 2 0 2 4 $7.2M $72.5M in Q2 2025 compared to $65.3M in Q2 2024 Q2 2025 Adjusted EBITDA1 increase Increase primarily due to: 11.0% • Higher sales volume over Q2 2024 • Increased selling prices • Lower manufacturing overhead costs Adjusted
Slide 16: Q2 2025 Revenue Compared to Q1 2025
Q 2 2 0 2 5 R E V E N U E C O M PA R E D TO Q 1 2 0 2 5 Sequential decrease primarily due to: ($10.0)M • Lower U.S. sales volume • Unfavourable FX impact on U.S. sales Q2 2025 Revenue decrease Partially offset by: (1.8)% • Increased selling prices over Q1 2025 $13.2M ($23.2)M over Q1 2025 over Q1 20
Slide 17: Q2 2025 Adjusted EBITDA Compared to Q1 2025
Q 2 2 0 2 5 A D J U S T E D E B I T DA 1 C O M PA R E D TO Q 1 2 0 2 5 ($3.3)M $72.5M in Q2 2025 compared to $75.8M in Q1 2025 Q2 2025 Adjusted EBITDA1 decrease Sequential decrease primarily due to: (4.3)% • Higher manufacturing overhead costs over Q1 2025 • Lower U.S. sales volume • Increased pulp
Slide 18: Balance Sheet
BA L A N C E S H E E T (Million CAD$, unless otherwise noted) Q2 2025 Q1 2025 Q2 2024 Cash 85.3 141.8 127.2 Current Portion of Long-term Debt 80.0 61.0 171.6 Long-term Debt 1,125.5 1,186.7 1,007.3 Net Debt 1,120.2 1,105.9 1,051.7 LTM Adjusted EBITDA1 280.8 273.6 266.0 Net Debt/LTM Adjusted EBITDA1 4
Slide 19: Capital Expenditures
C A P I TA L E X P E N D I T U R E S $200 • Q2 2025 CAPEX totaled $10.8 million, $180 including $2.0 million related to $160 Sherbrooke Expansion Project $140 $120 • Anticipating $70-$90 million in CAPEX for Millions $100 2025, including the Sherbrooke $80 Expansion Project $60 $40 $20 $0 2021 2022
Slide 20: 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 20
Slide 21: Sustained Growth Across Network
SUSTAINED GROWTH ACROSS NETWORK • Expanding business across customer base in 2025 • Managing margins amid volatile economic environment • Investing in U.S. operations to drive efficiency and capacity • Driving long-term brand share • Leveraging Made in Canada positioning • AFH profitability benefitt
Slide 22: www.kptissueinc.com
WWW.KPTISSUEINC.COM