Karat Packaging Q1 2023 Earnings Report
Key Takeaways
Karat Packaging reported a decrease in net sales by 9.1% to $95.8 million, but gross profit increased by 12.2% to $38.1 million. Net income also increased by 15.6% to $9.2 million, with a record gross margin of 39.8%.
Net sales decreased by 9.1% year-over-year to $95.8 million.
Gross profit increased by 12.2% year-over-year to $38.1 million.
Gross margin improved to a record 39.8%, up 730 basis points from the prior year.
Net income increased by 15.6% year-over-year to $9.2 million, resulting in a net income margin of 9.6%.
Karat Packaging
Karat Packaging
Karat Packaging Revenue by Segment
Forward Guidance
Karat Packaging anticipates net sales for the full year 2023 to increase by high single digits. They project a gross margin between 32% and 33% for the full year. The company also aims for eco-friendly product sales to constitute 35% of total sales for the year. Net sales for the second quarter of 2023 are expected to be 5% lower compared to the prior year period.
Positive Outlook
- Net sales for the 2023 full year expected to increase by high single digits.
- Gross margin goal for the 2023 full year: 32 percent to 33 percent.
- Eco-friendly product sales goal for the 2023 full year: 35 percent of total sales.
Challenges Ahead
- Net sales for the 2023 second quarter expected to be 5 percent lower, primarily due to price reductions, compared with the prior year period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income