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Mar 31, 2024
Karat Packaging Q1 2024 Earnings Report
Karat Packaging's financial performance remained relatively stable with slight decreases in net sales and net income compared to the prior-year quarter, while eco-friendly product sales saw growth.
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
Revenue by Segment
Chains and distributors Revenue
CapyFin.comOnline Revenue
CapyFin.comRetail Revenue
CapyFin.com 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