Karat Packaging Q3 2024 Earnings Report
Key Takeaways
Karat Packaging Inc. reported a 6.9% increase in net sales, reaching $112.8 million, and an 11.7% increase in gross profit, totaling $43.5 million for the third quarter of 2024. Net income rose slightly to $9.3 million, while adjusted EBITDA amounted to $14.7 million. The company also announced an increase in its quarterly cash dividend to $0.40 per share.
Net sales increased by 6.9% year-over-year to $112.8 million.
Gross profit increased by 11.7% year-over-year to $43.5 million.
Net income increased by 1.3% year-over-year to $9.3 million.
The board of directors approved an increase in the quarterly cash dividend to $0.40 per share.
Karat Packaging
Karat Packaging
Karat Packaging Revenue by Segment
Forward Guidance
The company expects net sales for the 2024 fourth quarter to increase by mid to high single percent from the prior-year quarter, and gross margin to be 39 to 40 percent versus 35.7 percent for the prior-year quarter.
Positive Outlook
- Net sales for Q4 2024 are expected to increase by mid to high single percent from the prior-year quarter.
- Gross margin for Q4 2024 is expected to be 39 to 40 percent.
- Efforts to expand in the supermarket chain category are starting to yield positive results.
- Initiated shipping customized bakery package containers for a major grocery chain customer in late September.
- Initiated shipments of utensils to another major grocery chain in mid-October.
Revenue & Expenses
Visualization of income flow from segment revenue to net income