Karat Packaging Q1 2024 Earnings Report
Key Takeaways
Karat Packaging reported a slight decrease in net sales, from $95.8 million to $95.6 million, and a decrease in net income from $9.2 million to $6.5 million for the first quarter of 2024. However, sales of eco-friendly products increased by 5.6% and now represent 34.5% of total sales.
Net sales slightly decreased to $95.6 million compared to $95.8 million in the prior-year quarter.
Gross profit decreased to $37.6 million from $38.1 million in the prior-year quarter.
Net income decreased to $6.5 million, impacted by a $1.5 million non-cash impairment, compared to $9.2 million in the prior-year quarter.
Eco-friendly product sales grew by 5.6% and now account for 34.5% of total sales, up from 32.6% a year ago.
Karat Packaging
Karat Packaging
Karat Packaging Revenue by Segment
Forward Guidance
Karat Packaging anticipates net sales to increase by mid-single digits for the second quarter of 2024 and expects a gross margin between 38 to 40 percent. For the full year 2024, net sales are projected to increase by 8 to 15 percent with a gross margin goal of 37 to 40 percent.
Positive Outlook
- Net sales for Q2 2024 are expected to increase by mid-single digits from the prior-year quarter.
- Gross margin for Q2 2024 is expected to be 38 to 40 percent versus 38.5 percent for the prior-year quarter.
- Net sales for full year 2024 are expected to increase 8 to 15 percent from the prior year.
- Gross margin goal for full year 2024 to be 37 to 40 percent versus 37.7 percent from the previous year.
- Strategic growth initiatives implemented last year are coming to fruition.
Revenue & Expenses
Visualization of income flow from segment revenue to net income