March 9, 2023 - KP Tissue Inc. (KPT) reports the Q4 2022 and full year 2022 financial and operational results of KPT and Kruger Products L.P. (KPLP).
"We are highly encouraged by the ongoing recovery of our financial results in 2022 despite uncertain market conditions and persistent inflationary pressure," stated KP Tissue's Chief Executive Officer, Dino Bianco. "Revenue improved 15% year-over-year to $1.7 billion mainly due to selling price increases across all segments and regions to counter higher pulp, manufacturing and freight costs.
"In the Consumer segment, we witnessed lower volume in the latter part of the year as some consumers traded down on purchases given higher market pricing. Away-From-Home had a strong quarter driven by greater volume as the segment continues to recover.
"Adjusted EBITDA was lower in 2022 as price increases did not fully catch up to inflation until later into the year, while cost management initiatives helped mitigate the impact. Our solid performance in the fourth quarter reflects that we are headed in the right direction with revenue growing 8% to $458 million and Adjusted EBITDA rising 16% to $44.4 million vs. Q4 2021.
"In January 2023, we further enhanced profitability by shutting down certain legacy assets at our Memphis plant, including a paper machine and six converting lines. The impact on US customers has been negligible as we refocus production capacity on TAD and facial tissue products. In addition, our Sherbrooke expansion project will become a key, long-term catalyst with two new lines starting up this year.
"In 2023, we intend to deliver continued topline growth with improved profitability, while prudently investing in our brands to support price increases and manage price gaps," Mr. Bianco concluded.
KP Tissue stated, "Looking ahead to the first quarter of 2023, our price increases are in place, and we believe inflationary pressure has stabilized, while our operating efficiency continues to gain traction and we are tightly managing our discretionary spending. As a result, we expect Adjusted EBITDA in Q1 2023 to be similar to Q4 2022 and to significantly exceed Q1 2022."
Complete 4Q 2022 and full year 2022 results for KP Tissue and Kruger Products L.P. are available on the company's website: www.kptissue.com.
KP Tissue was created to acquire, and its business is limited to holding, a limited partnership interest in KPLP, which is accounted for as an investment on the equity basis. KPT currently holds a 14.3% interest in KPLP.
SOURCE: KP Tissue
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