CHINO, Calif., Feb. 26, 2026 (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 2025 fourth quarter and full year financial results after market close on Thursday, March 12, 2026. The Company will host an investor conference call on the same day. Call Date:Thursday, March 12, 2026Time:2:00 p.m. PT/5:00 p.m. ETPhone:877-41 ...

Core Viewpoint - The company expects to benefit from recent tariff reductions on Taiwanese goods and new sourcing arrangements from South America, which will enhance its cost structure and long-term financial performance [2][3]. Company Developments - Karat Packaging Inc. has finalized new sourcing arrangements and begun importing products from South America, diversifying its global supply network [1]. - The company welcomed the U.S. reciprocal tariff reduction on Taiwanese goods to a maximum rate of 15 percent, down from 20 percent, which is significant as approximately half of its global sourcing is from Taiwan [2]. Strategic Implications - The new South American sourcing arrangements are part of the company's global strategy to diversify product sourcing and optimize costs [3]. - The combination of lower tariffs and new sourcing strategies is expected to help the company remain competitive, maintain attractive pricing for customers, and improve margins throughout the year [3]. Company Overview - Karat Packaging Inc. is a specialty distributor and manufacturer of disposable foodservice products, including containers, bags, tableware, and eco-friendly products under the Karat Earth® line [3]. - The company also offers customized solutions such as product development, design, printing, and logistics services [3].

Company Overview - Karat Packaging Inc. is a specialty distributor and manufacturer of a wide range of disposable foodservice products, primarily serving national and regional restaurants and foodservice settings across the United States [2] - The product offerings include food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other related items [2] - The company emphasizes eco-friendliness through its Karat Earth® line, which features sustainably focused products made from renewable resources [2] - Karat Packaging also provides customized solutions, including new product development, design, printing, and logistics services [2] Financial Results Announcement - Karat Packaging Inc. will release its 2025 third quarter financial results after market close on Thursday, November 6, 2025 [1] - An investor conference call will be held on the same day at 2:00 p.m. PT/5:00 p.m. ET [1] - The conference call can be accessed via phone or through a webcast available on the company's investor relations website [1]

Core Viewpoint - Karat Packaging Inc. has relocated its subsidiary Lollicup USA Inc.'s headquarters from Chino, California to Rockwall, Texas, aiming to enhance operational efficiency and customer service capabilities [1][2]. Company Overview - Karat Packaging Inc. operates through its wholly owned subsidiary, Lollicup USA Inc., which specializes in distributing and manufacturing disposable foodservice products for restaurants and foodservice settings across the U.S. [4]. - The product range includes food containers, bags, tableware, cups, lids, cutlery, straws, and eco-friendly options under the Karat Earth® line, which focuses on sustainability [4]. Operational Changes - The new facility in Rockwall is the largest among the company's 11 operating locations, featuring a 500,000 square-foot manufacturing and distribution center [2]. - The relocation is intended to create a more streamlined environment, improving coordination between manufacturing and distribution teams, and allowing for future growth [2]. Impact on Existing Operations - The relocation will not affect existing operations or employees in California, as the two warehouse facilities in Chino will continue to serve as essential hubs for inventory management and distribution [3].

Company Overview - Karat Packaging Inc. is a specialty distributor and manufacturer of disposable foodservice products and related items, primarily serving national and regional restaurants and foodservice settings across the United States [3] - The product range includes food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and other items [3] - The company offers an eco-friendly product line called Karat Earth®, which focuses on sustainability and is made from renewable resources [3] - Customized solutions are also provided, including new product development, design, printing, and logistics services [3] Recent Developments - Alan Yu, the CEO of Karat Packaging Inc., will participate in Lake Street Capital Market's 9th Annual Best Ideas Growth (BIG9) Conference in New York on September 11, 2025 [1] - Management will conduct one-on-one meetings with investors during the conference [1]

Core Insights - Karat Packaging Inc. reported record quarterly net sales and net income for the second quarter of 2025, demonstrating resilience amid supply chain disruptions and trade uncertainties [5][8][13] - The company successfully reduced its sourcing from China to 10% and is diversifying its supply chain by expanding operations in other Asian countries and Latin America [5][6] - Despite facing foreign currency headwinds, the company achieved a gross profit increase and maintained strong business trends heading into the third quarter [5][8][12] Financial Performance - Net sales for Q2 2025 increased by 10.1% to $124.0 million, up from $112.6 million in the prior-year quarter, driven by a $14.2 million increase in volume and product mix [6][8] - Gross profit rose by 13.1% to $49.1 million, with a gross margin improvement to 39.6% from 38.5% in the prior-year quarter [8][10] - Net income for Q2 2025 increased by 19.8% to $11.1 million, with a net income margin of 8.9% compared to 8.2% in the prior-year quarter [8][13] Operational Highlights - The new Chino warehouse is fully operational, enhancing logistics capabilities and enabling faster delivery times [5] - The company is experiencing sustained double-digit sales growth across all major markets, including California, with new business wins from large national chains expected to contribute in the latter half of 2025 [5][8] - Operating expenses for Q2 2025 were $32.6 million, a slight increase from $32.3 million in the prior-year quarter, primarily due to higher shipping costs and rent expenses [11][18] Guidance and Future Outlook - The company maintains its full-year guidance for 2025 on net sales, gross margin, and adjusted EBITDA margin, despite potential impacts from additional tariff changes [8][12] - For Q3 2025, net sales are expected to increase by high single-digit to low double-digit percentages compared to the prior-year quarter [8][12] - Adjusted EBITDA for Q2 2025 was $17.7 million, up 12.8% from the prior-year quarter, with an adjusted EBITDA margin of 14.3% [8][14]

Company Overview - Karat Packaging Inc. is a specialty distributor and manufacturer of environmentally friendly disposable foodservice products, primarily serving national and regional restaurants in the United States [3] - The product range includes food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and more [3] - The company offers an eco-friendly product line called Karat Earth®, which focuses on sustainability and is made from renewable resources [3] - Customized solutions are also provided, including new product development, design, printing, and logistics services [3] Financial Results Announcement - Karat Packaging Inc. will release its 2025 second quarter financial results after market close on August 7, 2025 [1] - An investor conference call will be held on the same day at 2:00 p.m. PT / 5:00 p.m. ET [2] - The conference call can be accessed via phone or webcast, with an archive available for approximately one year [2]

Core Viewpoint - Karat Packaging Inc. reported strong revenue growth in Q1 2025, with net sales increasing by 8.4% year-over-year, positioning the company well amid global trade uncertainties and supply chain challenges [1][3][5]. Financial Performance - Net sales for Q1 2025 reached $103.6 million, up from $95.6 million in Q1 2024, driven by a $11.7 million volume growth and a favorable product mix [5][7]. - Gross profit increased by 8.4% to $40.8 million, maintaining a gross margin of 39.3%, consistent with the prior year [7][9]. - Net income rose by 5.2% to $6.8 million, with a net income margin of 6.6% compared to 6.8% in the previous year [11][12]. - Adjusted EBITDA for Q1 2025 was $11.9 million, down from $13.5 million in Q1 2024, with an adjusted EBITDA margin of 11.5% [12][24]. Operational Highlights - The company reduced its reliance on China for sourcing from approximately 20% at the end of 2024 to 15% by March 2025, securing inventory from alternative sources [3][4]. - Online sales experienced a nearly 20% increase during the first quarter, reflecting the company's focus on expanding its market share [4][22]. - Operating expenses increased by 11.6% to $32.9 million, primarily due to higher shipping and transportation costs [10][19]. Guidance and Future Outlook - The company expects net sales for Q2 2025 to increase by high single-digit to low double-digit percentages compared to the prior year [7][12]. - Additional price increases are anticipated in mid-May 2025 due to rising costs from global tariff developments [3][4]. Dividend Announcement - On May 6, 2025, the board of directors approved a quarterly dividend of $0.45 per share, payable on or about May 23, 2025 [13].

Core Viewpoint - Karat Packaging Inc. is set to release its first quarter financial results for 2025 on May 8, 2025, and will host an investor conference call on the same day [1]. Company Overview - Karat Packaging Inc. is a specialty distributor and manufacturer of environmentally friendly disposable foodservice products, primarily serving national and regional restaurants in the United States [3]. - The product range includes food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves, and more [3]. - The company offers an eco-friendly product line called Karat Earth®, which focuses on sustainability and is made from renewable resources [3]. - Customized solutions are also provided, including new product development, design, printing, and logistics services [3]. Investor Relations - The investor conference call is scheduled for May 8, 2025, at 2:00 p.m. PT/5:00 p.m. ET, with specific phone numbers provided for domestic and international participants [2]. - The conference can be accessed via a webcast, which will be archived for approximately one year [2].

Core Insights - Karat Packaging Inc. reported robust growth in its fourth quarter and full year 2024, achieving a record gross margin as the business continues to expand [1][4][8] Fourth Quarter 2024 Highlights - Sales volume grew by 14% and net sales increased by 6.3% to $101.6 million, compared to $95.6 million in the prior-year quarter [4][8] - Eco-friendly product sales rose by 11% year-over-year, accounting for 35% of total sales [6] - Gross profit for the fourth quarter increased by 16.8% to $39.8 million, with a gross margin of 39.2%, up from 35.7% in the prior-year quarter [9][11] - Net income for the fourth quarter was $5.9 million, a 40.3% increase from $4.2 million in the prior-year quarter, resulting in a net income margin of 5.8% [13] Full Year 2024 Results - Net sales for the full year increased by 4.2% to $422.6 million, driven by volume growth and changes in product mix [15] - Gross profit for the year rose by 7.4% to $164.3 million, with a gross margin of 38.9%, up from 37.7% in the prior year [18] - Operating expenses for the year were $126.6 million, or 29.9% of net sales, compared to $111.0 million, or 27.4% of net sales, in the prior year [19] - Net income for the full year was $30.8 million, down from $33.2 million in 2023, with adjusted EBITDA of $55.3 million [20][21] Guidance - For the first quarter of 2025, net sales are expected to increase by 6% to 8%, with a gross margin projected between 37% to 39% [9] - Full year 2025 net sales are anticipated to grow by 9% to 11%, with a gross margin expected to be between 36% to 38% [9] Strategic Initiatives - The company is diversifying its supply chain, reducing dependence on China to approximately 20%, and increasing sourcing from countries like Taiwan [5] - A new 187,000 square-foot distribution center in Chino, California, is set to enhance capacity ahead of the summer peak season [7]