KP Tissue, has released its third quarter 2023 financial and operating results for KPT and Kruger Products Inc. Kruger Products is the leading Canadian manufacturer of high-quality tissue products for the consumer market, including brands such as Cashmere, Purex, SpongeTowels, Scotties, White Swan and Bonterra, as well as for the institutional market, and continues its growth in the U.S. consumer tissue products market. KPT currently owns a 13.1% interest in Kruger Products.
KRUGER PRODUCTS Q3 2023 BUSINESS AND FINANCIAL HIGHLIGHTS
- Revenue was $473.4 million in Q3 2023 compared to $427.0 million in Q3 2022, an increase of $46.4 million or 10.9%.
- Adjusted EBITDA1 was $72.4 million in Q3 2023, compared to $30.7 million in Q3 2022, an increase of 135.7%.
- Net income was $12.9 million in Q3 2023 compared to a net loss of $38.8 million in Q3 2022, an increase of $51.7 million.
- Declared a quarterly dividend of $0.18 per share to be paid on January 15, 2024
We are very pleased with our Adjusted EBITDA of $72.4 million in the third quarter of 2023, highlighted by robust sales volume in our Consumer segment and improved productivity from our network assets,” stated KP Tissue’s Chief Executive Officer, Dino Bianco. “We also benefited from a seasonally strong quarter, lower pulp and other input costs, as well as 2022 pricing carry over. As a result, we outperformed expectations despite an uncertain economic environment.”
By the fourth quarter of 2023, margins are expected to stabilize, and the company will continue to reinvest in the business to drive long-term value. Adjusted EBITDA in the fourth quarter of 2023 is expected to be in the range of $60 to $65 million.
As for Kruger Products’ financial results in the third quarter of 2023, there has been a 10.9% increase in revenues compared to the same period last year, mainly due to higher sales volume and a favorable sales mix in the consumer segment. Production costs have decreased, although general and administrative expenses have increased.
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