The following is a summary of the KP Tissue Inc. (KPTSF) Q2 2024 Earnings Call Transcript:
Financial Performance:
KP Tissue Inc. reported Q2 2024 revenue growth of 9.3% reaching $509.8 million, attributed to higher sales volumes, favorable sales mix in the consumer segment, and improved pricing.
Adjusted EBITDA increased by 18.6% year-over-year to $65.3 million, driven by enhanced sales volume, improved sales mix, improved prices, and lower pulp costs.
Net income decreased by $3.9 million to $10.6 million compared to Q2 2023, due to a higher foreign exchange loss and greater depreciation expense.
Business Progress:
Successfully introduced Scotties PocketPaks and new ultra-soft SKUs, expanded marketing for Scotties House and Home Design Series, and strategically launched brand promotions.
Operational progress includes resolving labor disruption with a five-year collective bargaining agreement and keeping paper machine project at Sherbrooke on schedule for Q4 2024 start-up.
Away-From-Home business showed strong adjusted EBITDA improvement, supported by higher volumes and sequential sales growth.
Opportunities:
Expansion and investment in the U.S. market, leveraging increased U.S. business growth to enhance overall revenue.
Announced price increases in the consumer segment to mitigate rising pulp costs.
Risks:
Elevated pulp prices projected to remain high throughout the year, impacting cost structures.
More details: KP TISSUE INC IR
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