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Dec 31, 2024
Karat Packaging Q4 2024 Earnings Report
Karat Packaging reported solid revenue growth and improved profitability in Q4 2024.
Key Takeaways
Karat Packaging posted net sales of $101.6 million, a 6.3% increase year-over-year. Adjusted EBITDA rose to $11.3 million, representing an adjusted EBITDA margin of 11.1%. Net income improved significantly by 40.3% to $5.9 million. The company continues to expand its eco-friendly product lines, which contributed 35% of total sales.
Total revenue increased 6.3% YoY to $101.6 million.
Adjusted EBITDA rose to $11.3 million, up from $8.6 million in Q4 2023.
Net income grew 40.3% to $5.9 million, with an improved net income margin of 5.8%.
Eco-friendly products accounted for 35% of total sales, with an 11% YoY growth.
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 expects continued revenue growth in 2025, driven by strong demand for eco-friendly products and strategic pricing adjustments.
Positive Outlook
- Projected net sales increase of 6-8% in Q1 2025.
- Full-year 2025 revenue expected to grow between 9-11%.
- Gross margin for Q1 2025 forecasted between 37-39%.
- Ongoing efforts to diversify sourcing and reduce dependence on China.
- Expansion of distribution capacity with a new 187,000 square-foot center.
Challenges Ahead
- Tariff uncertainty may impact product sourcing costs.
- Potential margin pressure due to increased labor and shipping expenses.
- Competitive pricing environment in the distributor channel.
- Ongoing capital expenditures for warehouse expansion could impact cash flow.
- Fluctuations in foreign exchange rates could affect supplier costs.
Revenue & Expenses
Visualization of income flow from segment revenue to net income