KP Tissue Releases First Quarter 2022 Financial Results

KP Tissue Inc. (KPT) (TSX: KPT) reports the Q1 2022 financial and operational results of KPT and Kruger Products L.P. (KPLP). Kruger Products is Canada’s leading manufacturer of quality tissue products for the Consumer market (Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and BonterraTM) and the Away-From-Home (AFH) market and continues to expand in the U.S. Consumer market with the White Cloud® brand and premium private label products. KPT currently holds a 14.3% interest in KPLP.

KPLP Q1 2022 Business and Financial Highlights:
• Revenue was $398.7 million in Q1 2022 compared to $310.4 million in Q1 2021, an increase of $88.3 million or 28.5%.
• Adjusted EBITDA1 was $29.1 million in Q1 2022, compared to $37.5 million in Q1 2021, a decrease of 22.4%.
• Net income was $1.4 million in Q1 2022 compared to $6.8 million in Q1 2021, a decrease of $5.4 million.
• Declared a quarterly dividend of $0.18 per share to be paid on July 15, 2022.

“We delivered strong sales growth of 28.5% year-over-year in the first quarter of 2022, driven by an ongoing market recovery, increased capacity driven by Sherbrooke and a pricing increase mainly impacting our Canadian operations. Robust top-line growth was tempered by escalating inflation across many essential cost items such as pulp, freight, natural gas, packaging and labour,” stated KP Tissue’s Chief Executive Officer, Dino Bianco.

“To counter inflationary pressure, we have adopted a multi-faceted strategy based on further price increases across all segments, cash management through reductions in working capital and discretionary capital spending, as well as incremental productivity programs. We believe price increases, combined with the aforementioned cost-saving initiatives, should begin catching up with inflation in the second half of the year.”

“In light of price increases in the marketplace, we believe it’s vital to continue supporting our brands through targeted innovation and marketing. Accordingly, we are seeing strong distribution for our new sustainably focused brand, Bonterra. Recently upgraded Purex® and Cashmere UltraLuxe® TAD products are also tracking well against expectations, while SpongeTowels UltraPro® continues to drive share with consumers since its introduction last year. More recently, we expanded the distribution of re-launched White Cloud in the United States as we continue to build that brand,” Mr. Bianco concluded.
details at: https://www.kptissueinc.com/gpc/_media/Document/kp-tissue-inc-q1-2022-earnings-release-eng-vf.pdf

Related Posts

ND Paper Rumford Division Further Expanding into Packaging Grades

ND Paper is implementing a series of transformations at its Rumford Division to further expand into packaging grades. In its current configuration, the fully integrated Rumford Division operates three paper production lines, kraft and mechanical pulping assets, and a pulp dryer; its product mix is heavily weighted toward bleached grades serving printing and writing (P&W) markets. With the COVID-19 pandemic battering economic activity across the world, demand for P&W papers has plummeted; coated woodfree and coated mechanical papers – primary Rumford grades – are expected to decline 23.5% and 30.3% year-over-year, respectively, equivalent to over 1.4 million tons of output. To ensure a viable, profitable future for the Rumford Division, ND Paper will be transforming the mill to increase its product flexibility and shift further into packaging grades. Notable changes include: *Commissioning of an unbleached recycled pulp line to provide fiber flexibility to the R12 and R15 paper machines *Conversion of its R15 paper machine from P&W papers into lightweight, high strength kraft linerboard products *Expansion of R12 paper machine capability to include unbleached recycled bag and converting papers, in addition to its current offering of bleached and unbleached papers *Continued operation of the R9 pulp dryer, including expansion into unbleached softwood kraft market pulp *Permanent curtailment of mechanical pulping operations and R15 coating and supercalender assets

St1 and SCA form partnership to produce renewable fuels

The aim of the partnership is to construct a new facility to produce advanced renewable fuels from tall oil with a capacity of 100 000 tonnes per annum. Construction of the new facility, subject to permission process and final approval from both companies, is expected to cost around 500 MSEK to build and is planned to be operational in 2021. Tall oil is a residual product from the production of kraft pulp in SCA’s mills Östrand, Obbola and Munksund. SCA is presently expanding its kraft pulp mill Östrand and as a result the production of tall oil from the mill will increase by more than 100 per cent. Between the two partners, the parties constitute the full value-chain from the raw material to the refining process, distribution and sale of the renewable fuel to the customers. Click Read More below for additional information.

Canfor Provides Update on Operating Schedules for Western Canadian Sawmills

Canfor Corporation is announcing the continuation of reduced operating schedules at its Western Canadian sawmills due to the ongoing global supply chain challenges. The Company has been operating at approximately 80% of production capacity since late March 2022. In addition, the Company will be implementing two weeks of rotating downtime across its primary sawmills in July and August, which will help align production capacity with the sustainable timber supply and transportation availability. The Company will use this downtime to complete maintenance projects and other site activities to help mitigate the impact on employees. These capacity reductions are expected to result in an incremental impact of approximately 275 million board feet by the end of August, in addition to the 100 million board feet reduction previously announced on March 30th.
Back To Top
×Close search
Search