•
Mar 31, 2022

Karat Packaging Q1 2022 Earnings Report

Reported record quarterly revenue and net income more than doubled.

Key Takeaways

Karat Packaging Inc. reported a strong first quarter in 2022, with record quarterly net sales of $105.4 million, a 39.3% increase from the prior-year quarter, and net income more than doubled. Gross profit increased by 58.6% to $34.3 million, and gross margin improved to 32.5%.

Record quarterly net sales increased by 39.3% year-over-year to $105.4 million.

Gross profit increased by 58.6% year-over-year to $34.3 million.

Gross margin improved by 390 basis points to 32.5%.

Net income more than doubled compared to the prior-year quarter, reaching $7.9 million.

Total Revenue
$105M
Previous year: $75.7M
+39.3%
EPS
$0.36
Previous year: $0.13
+176.9%
Adjusted EBITDA Margin
12.3%
Previous year: 9%
+36.7%
Gross Profit
$34.3M
Previous year: $21.6M
+58.6%
Cash and Equivalents
$6.82M
Previous year: $961K
+609.7%
Free Cash Flow
-$12.3M
Previous year: $4.23M
-389.6%
Total Assets
$240M
Previous year: $177M
+35.9%

Karat Packaging

Karat Packaging

Karat Packaging Revenue by Segment

Forward Guidance

The company provided guidance for the second quarter and full year of 2022.

Positive Outlook

  • Net sales for the second quarter are expected to be between $116 million and $118 million, up from $94.5 million in the second quarter of 2021.
  • Net sales for the full year are projected to be between $445 million and $449 million, compared to $364.2 million in 2021.
  • Gross margin goal for the full year is 31% to 32% on average, including the expected impact from freight and duty capitalization for the remainder of 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income