KP Tissue Inc. (KPT) (TSX: KPT) reports the Q3 2020 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, and White Swan) and the Away-From-Home market, and continues to grow in the U.S. Consumer tissue business with the White Cloud® brand and premium private label products. KPT currently holds a 14.7% interest in KPLP.
KPLP Q3 2020 Business and Financial Highlights
• Revenue was $369.1 million in Q3 2020 compared to $344.0 million in Q3 2019 excluding the divested Mexico business in 2019, an increase of $25.1 million or 7.3%.
• Adjusted EBITDA was $46.2 million in Q3 2020 compared to $44.0 million in Q3 2019, an increase of 5.1%.
• TAD Sherbrooke site near completion and remains on time and on budget.
• Declared a quarterly dividend of $0.18 per share to be paid on January 15, 2021.
“We are pleased with our third quarter results which reflects strong North American sales momentum in our consumer business while reinvesting in key areas for future growth. The Away-From-Home segment continued to face challenging end-market conditions. As we enter the ninth month of Covid-19, our focus has been and continues to be on the safety of our people while ensuring we maintain business continuity during this unprecedented tissue demand. I am pleased with the work we have done in both areas,” stated KP Tissue Chief Executive Officer, Dino Bianco.
“Two years ago, we launched our OpEx Program with the objective to drive more capacity, asset reliability and cost savings. The level of engagement has been exceptional, leading to a shift to a culture of excellence. Clearly, this has allowed us to navigate through the pandemic in a much stronger position. By the end of 2020, we anticipate reaching the top-end of our goal of $15-20 million in cost savings on a run rate basis.
“The new TAD Sherbrooke facility is near completion and remains on time and on budget. As we finalize our commercial plans, we anticipate strong demand for this output across North American customers. This new production facility will alleviate some of the capacity constraints of recent quarters and will enhance our competitive position in the paper towel category, supported by positive consumer trends for the foreseeable future.
I would like to thank the entire Kruger Products team for their continued dedication during these uncertain times as well as managing through the unpredictable and volatile market conditions. We look forward to 2021 as we continue to grow and invest in our business while welcoming our new TAD facility,” concluded Mr. Bianco.
details at: https://www.kptissueinc.com/gpc/_media/Document/kp-tissue-inc-q3-2020-earnings-release-eng-vf.pdf