Karat Packaging Q2 2022 Earnings Report
Key Takeaways
Karat Packaging reported a strong second quarter with record net sales of $114.9 million, a 21.5% increase year-over-year, and a gross profit increase of 20.9% to $34.0 million. Net income was $7.2 million, compared to $9.3 million in the prior-year quarter which included a $5 million gain on forgiveness of debt.
Record quarterly net sales of $114.9 million, up 21.5 percent from the prior-year quarter.
Gross profit of $34.0 million, up 20.9 percent from the prior-year quarter.
Net income of $7.2 million, versus $9.3 million in the prior-year quarter which included a gain on forgiveness of debt of $5 million.
Adjusted EBITDA of $11.8 million, up 14.6 percent from the prior-year quarter.
Karat Packaging
Karat Packaging
Karat Packaging Revenue by Segment
Forward Guidance
The Company expects net sales between $117 million and $120 million for the third quarter of 2022, and between $445 million and $449 million for the full year 2022. The Company expects gross margin between 31% and 32% on average for the full year 2022.
Positive Outlook
- Net sales for the 2022 third quarter: $117 million to $120 million, up from $102.7 million for the 2021 third quarter.
- Net sales for the 2022 full year: $445 million to $449 million, versus $364.2 million in 2021.
- Gross margin goal for the 2022 full year: 31 percent to 32 percent on average, including expected impact from freight and duty capitalization for the remainder of 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income