Core Insights - Karat Packaging, Inc. (KRT) reported lower-than-expected second-quarter 2024 revenues and earnings per share (EPS), leading to an 8.5% decline in share price since the announcement [1] - The adjusted EPS of 49 cents missed the Zacks Consensus Estimate of 60 cents and represented a 29% year-over-year decline [1][2] - Total revenues increased by 3.5% year-over-year to $112.6 million but fell short of the Zacks Consensus Estimate of $114 million [2] Financial Performance - Including one-time items, EPS was 45 cents, down from 53 cents in the same quarter last year [2] - The cost of sales rose 3.5% year-over-year to $69 million, while gross profit increased by 3.7% to $43 million, maintaining a gross margin of 38.5% [3] - Operating expenses increased to $32.3 million from $28.5 million year-over-year, driven by higher online sales platform fees, rent, warehouse expenses, and stock compensation [4] Operational Metrics - Adjusted EBITDA declined 26% year-over-year to $15.7 million, with an adjusted EBITDA margin of 13.9%, down from 19.4% in the second quarter of 2023 [5] - Cash and cash equivalents decreased to $19.3 million as of June 30, 2024, from $23 million at the end of 2023, with cash flow from operations at $20 million compared to $31 million in the prior year [6] Future Guidance - For Q3 2024, KRT anticipates year-over-year sales growth in the mid to high-single-digit range and projects a gross margin between 38% and 39% [7] - For the full year 2024, sales growth is expected to be in the mid-single digits, with a targeted gross margin of 38% to 40% [7] Market Performance - Year-to-date, KRT shares have gained 3.1%, while the industry has seen a growth of 9.3% [8]

Core Points - Karat Packaging Inc. announced a regular quarterly cash dividend of $0.35 per share and a special cash dividend of $0.15 per share, reflecting the company's strong cash position and positive long-term outlook [1][2] - Both dividends are payable on or about August 30, 2024, to shareholders of record at the close of business on August 21, 2024 [2] Company Overview - Karat Packaging Inc. is a specialty distributor and manufacturer of disposable foodservice products, primarily serving national and regional restaurants and foodservice settings across the United States [2] - The product range includes food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and more [2] - The company offers an eco-friendly product line, Karat Earth®, which focuses on sustainability and is made from renewable resources [2] - Customized solutions are also provided, including new product development, design, printing, and logistics services [2]

Both events will be webcast live on Karat's investor relations website at https://irkarat.com/. Management will conduct one-on-one meetings with investors during both conferences. For those who are not able join the live webcast, these events will be archived for approximately one year. CHINO, Calif., May 21, 2024 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) ("Karat"), a specialty distributor and manufacturer of disposable foodservice products and related items, today announced that it will partic ...

Karat Packaging, Inc. (KRT) reported first-quarter 2024 adjusted earnings per share (EPS) of 40 cents, missing the Zacks Consensus Estimate of 44 cents. The bottom line declined 11% from earnings of 45 cents in the year-ago quarter. Including one-time items, EPS was 31 cents compared with the year-ago quarter's 45 cents. Total revenues decreased 0.2% year over year to $96 million in the reported quarter. The top line missed the Zacks Consensus Estimate of $100 million. The year-over-year decline was led by ...

Form 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to ______________ Commission file number 001-40336 Karat Packaging Inc. (Exact name of registrant as specified in its charter) (State or other ...

Karat Packaging Reports 2024 First Quarter Financial Results CHINO, Calif, May 9, 2024 – 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 2024 first quarter ended March 31, 2024. First Quarter 2024 Highlights Guidance "The strategic growth initiatives we implemented last year are coming to fruition," said Alan Yu, Chief Executive Off ...

CHINO, Calif., May 07, 2024 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (NASDAQ:KRT) (the "Company" or "Karat"), a specialty distributor and manufacturer of disposable foodservice products and related items, today announced that its board of directors approved the payment of a regular quarterly dividend of $0.35 per share on the Company's common stock, reflecting an increase from the previous quarterly dividend of $0.30 per share. The dividend is payable on or about May 24, 2024, to the stockholders of record ...

CHINO, Calif., April 25, 2024 (GLOBE NEWSWIRE) -- Karat Packaging Inc. ("Karat" or the "Company") (NASDAQ:KRT), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced it will release its 2024 first quarter financial results after market close on Thursday, May 9, 2024. The Company will host an investor conference call on the same day.    Call Date: Thursday, May 9, 2024 Time: 2:00 p.m. PT/5:00 p.m. ET Phone: 646-307-1963 ( ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For transition period from to Commission File Number 001-40336 Karat Packaging Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organi ...

Financial Data and Key Metrics Changes - Sales volume for Q4 2023 grew by 7% compared to the prior year period, despite revenue being impacted by unfavorable pricing comparisons and startup delays from new accounts [2][29] - Net income for Q4 2023 was $4.2 million, down from $4.5 million in the prior year quarter, with a net income margin of 4.4% compared to 4.9% previously [4][11] - Gross margin expanded to 35.7% in Q4 2023 from 32% in the prior year quarter, benefiting from reduced US manufacturing and a strong US dollar [11][12] Business Line Data and Key Metrics Changes - Sales from manufactured products in Q4 2023 accounted for 16% of total net sales, down from approximately 27% the previous year [2] - Sales of eco-friendly products grew by 11% in Q4 2023, representing about 33% of total sales, up from 31% last year [2] Market Data and Key Metrics Changes - Sales to distributors decreased by 6%, while sales to national and regional chains fell by 3.6%, and retail channel sales decreased by 5.2% in Q4 2023 [29] - Online channel sales surged by 68.2%, significantly influenced by adjustments related to online sales platform fees [29] Company Strategy and Development Direction - The company is focusing on expanding its geographic presence, particularly in the South, Midwest, and Pacific Northwest, to offset declines in the California market [10] - Plans for 2024 include implementing automation and AI technology across facilities, evaluating strategic acquisition opportunities, and opening new distribution centers [10][28] - The Board of Directors authorized an increase in the quarterly cash dividend payment to $0.30 per share, reflecting confidence in the company's financial health [10] Management's Comments on Operating Environment and Future Outlook - Management noted a slowdown in customer purchasing for inventory in December 2023, attributed to overstocking and a weaker restaurant sector in California [6][41] - The company anticipates net sales growth of 8% to 15% for the full year 2024, with a gross margin target of 35% to 38% [12][55] - Management expressed optimism about volume growth, targeting a 15% increase in volume for 2024, supported by new customer acquisitions and product expansions [55][57] Other Important Information - Operating expenses in Q4 2023 were $29.5 million, or 30.8% of net sales, up from $24.9 million, or 26.8% of net sales, in the prior year quarter [4] - The company finished 2023 with $110.3 million in working capital and $59.3 million in financial liquidity [12] Q&A Session Summary Question: What drove the lower than expected results in Q4 sales? - Management indicated that a significant slowdown in distributor orders in December was due to overstocking and weaker business conditions compared to the previous year [6][31] Question: Is the pricing environment stabilizing? - Management noted that pricing had been declining due to overstocking and lower costs but indicated signs of a rebound in certain categories [16][32] Question: How will operating expenses and cash flow look in 2024? - Management expects operating expenses to remain consistent or improve slightly as they focus on leveraging costs, with strong free cash flow anticipated [35][36] Question: What is the impact of the import duty reserve on future COGS? - Management clarified that the reserve was based on updated estimates and does not expect significant changes in 2024 related to this charge [61][62]