Karat Packaging Q4 2021 Earnings Report
Key Takeaways
Karat Packaging, Inc. reported strong Q4 2021 results with a 30% increase in net sales to $91.3 million and a gross margin increase of 360 basis points to 31%. The company achieved $10.9 million in adjusted EBITDA, representing an 11.9% adjusted EBITDA margin. Looking ahead, Karat Packaging is targeting net sales for Q1 2022 to be in the range of $101 million to $103 million, and expects full-year 2022 sales to grow 17% to 19% over 2021.
Net sales for the fourth quarter increased 30% year-over-year to $91.3 million.
Online sales posted the highest percentage increase, up 56% year-over-year.
Gross margin increased 360 basis points to 31% over the same quarter last year.
Net income increased more than threefold to $6 million.
Karat Packaging
Karat Packaging
Forward Guidance
Karat Packaging is targeting net sales for the first quarter of 2022 to be in the range of $101 million to $103 million, representing approximately 35% growth at the midpoint of the range compared to the same period last year. For the full year 2022, the company expects sales to grow 17% to 19% over 2021.
Positive Outlook
- Targeting net sales for Q1 2022 to be in the range of $101 million to $103 million, up about 35% at the midpoint
- Expect sales to grow 17% to 19% over 2021 for the full 2022 year
- Food service sector is continuing to experience steady increase in consumer spending
- Demand for environmentally friendly products continue to grow
- Leased 14 trucks and trailers to expand third-party logistics services