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KP Tissue Releases Second Quarter 2025 Financial Results
Globenewswire· 2025-08-13 11:00
Core Insights - KP Tissue Inc. (KPT) reported strong profitability in Q2 2025, with Adjusted EBITDA increasing by 11% year-over-year to $72.5 million, driven by higher sales volumes and favorable selling prices [3][9] - The company announced a $35 million investment in its Memphis manufacturing facility to enhance efficiency and support its growing U.S. business [4][14] - U.S. sales grew by 12% in the first half of 2025, although growth slowed in Q2 due to front-loaded shipments and softness in the Away-From-Home (AFH) market [3][6] Financial Performance - Revenue for Q2 2025 was $536.1 million, up from $509.8 million in Q2 2024, marking a 5.2% increase [6][10] - Cost of sales rose to $462.2 million in Q2 2025, an increase of 7.2% from $431.2 million in Q2 2024, primarily due to higher sales volume and pulp prices [7] - Selling, general and administrative (SG&A) expenses increased by 11.1% to $47.2 million in Q2 2025, compared to $42.5 million in Q2 2024 [8] Profitability Metrics - Adjusted EBITDA for Q2 2025 was $72.5 million, up from $65.3 million in Q2 2024, reflecting an 11% increase [9][10] - Net income for Q2 2025 was $22.1 million, compared to $10.6 million in Q2 2024, representing an increase of $11.5 million [11][10] - The company declared a quarterly dividend of $0.18 per share, to be paid on October 15, 2025 [15][10] Investment and Growth Strategy - The investment in the Memphis facility aims to deploy a state-of-the-art converting line for bathroom tissue and paper towels, enhancing production capabilities [4][14] - The company expects stronger performance in Q3 2025, projecting Adjusted EBITDA in the range of $75 million to $80 million [5] Liquidity Position - As of June 30, 2025, total liquidity was reported at $293.1 million, indicating a solid financial position [12]
KP Tissue Releases First Quarter 2025 Financial Results
Globenewswire· 2025-05-14 11:00
Core Insights - KP Tissue Inc. reported strong Q1 2025 financial results, with Adjusted EBITDA of $75.8 million, a 12.9% increase year-over-year, and revenue growth of nearly 14% [3][5][9] Financial Performance - Revenue for Q1 2025 was $546.1 million, up from $479.4 million in Q1 2024, marking an increase of $66.7 million or 13.9% [5][8] - Cost of sales increased to $451.0 million in Q1 2025 from $394.0 million in Q1 2024, reflecting a rise of $57.0 million or 14.5% [6] - Selling, general and administrative (SG&A) expenses rose to $51.2 million in Q1 2025, an increase of $7.1 million or 16.1% compared to Q1 2024 [7] - Net income for Q1 2025 was $15.4 million, compared to $9.0 million in Q1 2024, an increase of $6.4 million [10][12] Segment Performance - The Consumer segment revenue was $465.2 million in Q1 2025, up from $404.3 million in Q1 2024, while the Away-From-Home (AFH) segment revenue increased to $80.9 million from $75.1 million [36] - Adjusted EBITDA for the Consumer segment was $76.1 million, compared to $62.7 million in the previous year, while the AFH segment saw a decrease in Adjusted EBITDA to $2.8 million from $7.8 million [37] Operational Developments - The newly deployed LDC paper machine in Sherbrooke is expected to meet all in-house paper requirements starting Q2 2025, contributing to operational efficiency [3] - The company is closely monitoring the impact of changing tariffs on its business and has developed contingency plans [3] Liquidity and Dividends - Total liquidity as of March 31, 2025, was $356.8 million, with $4.4 million held for the Sherbrooke Expansion Project [11] - A quarterly dividend of $0.18 per share has been declared, to be paid on July 15, 2025 [13]