Karat Packaging Inc. · NASDAQ:KRT
Karat Packaging — Investor Presentation (June 2021)
15 slides from Karat Packaging's investor presentation, Jun 3, 2021
Slide 1: Karat Packaging Inc. June 2021 Investor Presentation
K ARAT P ACKAGING I NC . (N ASDAQ : KRT) June 2021 Investor Presentation
Slide 2: Disclaimer
D ISCLAIMER Forward - Looking Statements Certain statements made in this presentation regarding Karat Packaging Inc . or its affiliates (the “Company”) regarding the Company’s expectations, beliefs, goals or prospects may constitute forward - looking statements within the meaning of the Private Secu
Slide 3: Karat Packaging: History of Growth and Success
K ARAT P ACKAGING : H ISTORY OF G ROWTH AND S UCCESS Founded as Lollicup USA Inc. in San Gabriel, CA to establish bubble tea stores nationwide Lollicup’s business expanded to the sale and distribution of foodservice supplies Lollicup grew to more than 60 stores from a single store in 2000 Sold the r
Slide 4: Distinguishing Characteristics
$46 $60 $73 $100 $122 $140 $175 $225 $296 2012 2013 2014 2015 2016 2017 2018 2019 2020 D ISTINGUISHING C HARACTERISTICS Strong Revenue Growth Competitive Strengths Key Stats 26.2% 2012 - 2020 Revenue CAGR >50,000 Customers 12.2% 2020 EBITDA margin (1) 150+ Suppliers 99% Customer Retention 6 Location
Slide 5: Industry Overview
$64 $67 $69 $72 $75 $78 2020 2021 2022 2023 2024 2025 I NDUSTRY O VERVIEW $14 $25 $50 $63 $76 $91 $107 $125 2018 2019 2020 2021 2022 2023 2024 2025 Disposable Foodservice Products Market U.S. Online Delivery Market ($ in billions) With growing trend toward food delivery, take - out and at - home din
Slide 6: One-Stop-Shop, Broad Product Offering
O NE - S TOP - S HOP , B ROAD P RODUCT O FFERING Recent New Products Karat Products: Wide selection of high - quality, single - use disposable products, including food and take - out containers, bags, tableware, cups, lids, cutlery and straws, which can also be custom printed Karat Earth ® Products:
Slide 7: Focus on Distribution and Advanced Logistics
Revenue Mix (1) Distribution Manufacturing F OCUS ON D ISTRIBUTION AND A DVANCED L OGISTICS Opened 2019 Opened July 2020 Investment in 2021 (1) Figure for 12 months ended December 31, 2020. Growing fleet of 25+ trucks and 25+ drivers resulting in efficient nationwide distribution network serving maj
Slide 8: Diverse and Growing Blue Chip Customer Base
D IVERSE AND G ROWING B LUE C HIP C USTOMER B ASE Distributors (53% of LTM Revenue) Online (12% of LTM Revenue) Retail (12% of LTM Revenue) Note: % Revenue by Customer Type as of LTM 12/31/20. National Chains (23% of LTM Revenue) Fast Casual Fast Food *Key Growth Area • Grow our wallet share by supp
Slide 9: Disrupting Traditional Foodservice Supply Chain
D ISRUPTING T RADITIONAL F OODSERVICE S UPPLY C HAIN ▪ Different substrates have different manufacturers ▪ Manufacturers sell through a multi - layer distribution network before the product reaches end customer ▪ Primarily compete with manufacturers having large installed base of equipment and unabl
Slide 10: Growth Strategy
G ROWTH S TRATEGY x Continue to build online distribution channel x Disrupt traditional foodservice supply chain x Grow base business with incremental revenue from existing customers x Expand with new customers via new capabilities, geographies, products, services and end markets x Execute on operat
Slide 11: Significant Net Sales Momentum
S IGNIFICANT N ET S ALES M OMENTUM Quarterly Net Sales With COVID - 19 Products Breakout As a nimble supplier, Karat Packaging was able to react quickly to the pandemic and supply PPE to existing and new customers, which helped entrench relationships, retain new customers, sell more products Company
Slide 12: First Quarter 2021 Highlights
F IRST Q UARTER 2021 H IGHLIGHTS 12 Commentary: ▪ Net sales up 18.1% from prior year Q1 of $64.1 million ▪ Gross profit up 20.9% from prior year Q1 of $17.9 million ▪ Gross margin up 70 basis points from prior year Q1 of 27.9% ▪ Adjusted EBITDA up 14.3% from prior year Q1 of $6.0 million Q2 2021 Out
Slide 13: Growth Objectives
G ROWTH O BJECTIVES Annual Revenue Growth Margin Expansion Capital Allocation ~15% revenue growth ~29 – 31% gross margin M&A and growth projects ~30% CAGR (1) ~28% gross margin (2) Capital expenditures for build - out of Rockwall and Branchburg facilities Historical 3 - 5 Year Target (1) CAGR from 2
Slide 14: Why Invest in Karat Packaging?
W HY I NVEST IN K ARAT P ACKAGING ? x Building on a history of proven success x Initiatives in place to drive profitable growth from existing and new customers x Strong upside potential , long - term and near - term, as restaurant and foodservice sectors re - emerge from pandemic x Highly nimble sou
Slide 15: > & if. || © = =v
> & if. || © = =v