KP Tissue Announces 2023 Financial Results

KP Tissue Inc, has disclosed financial and operating results for the fourth quarter and full year 2023 for both KPT and Kruger Products Inc. The latter, recognized as the leading manufacturer of quality tissue products in Canada, encompasses well-known consumer brands such as Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and BonterraTM, as well as products for the away-from-home (AFH) market. In addition, Kruger Products is expanding its presence in the U.S. market with the White Cloud® brand and a range of premium private label products. KPT currently holds a 12.9% interest in Kruger Products.

In the fourth quarter of 2023, Kruger Products reported revenues of $482.3 million, marking a 5.3% increase over the same period last year, which stood at $458.1 million. This increase was mainly attributed to higher sales volume and effective cost management, which also contributed to raising adjusted EBITDA by an impressive 37.9%, from $44.4 million in the fourth quarter of 2022 to $61.2 million in the same period of 2023. The company also posted a slight increase in net income, reaching $16.5 million versus $16.0 million in the prior year, and announced a quarterly dividend of $0.18 per share.

Notable achievements included the successful start-up of the Sherbrooke Expansion Project facial tissue production line in February 2024, as well as the announcement of a 25% increase in facial tissue production at the Gatineau plant, with an investment of $14.5 million.

On a year-over-year basis, Kruger Products experienced 11.4% revenue growth in fiscal 2023, reaching $1,873.0 million compared to $1,681.4 million in the prior year. Adjusted EBITDA more than doubled, rising 105.7% to $238.6 million, in contrast to $116.0 million in FY2022. In addition, the company managed to significantly reduce its net loss from $56.9 million in 2022 to just $5.3 million in 2023.

Dino Bianco, CEO of KP Tissue, expressed his satisfaction with the year’s financial results, highlighting record sales and record adjusted EBITDA. Bianco also highlighted the company’s success in gaining market share in the facial tissue and paper towel categories, as well as the improvement in market share in bathroom tissue. The company’s strategy for the near future includes managing margins amid rising costs and continuing to invest in its brands and products.

For the first quarter of 2024, Kruger Products anticipates margins to remain stable and expects adjusted EBITDA to be in a range similar to the fourth quarter of 2023. The company ends the year in a strong financial position, highlighting its continued commitment to innovation and operational efficiency.

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