The following is a summary of the KP Tissue Inc. (KPTSF) Q1 2024 Earnings Call Transcript:
Financial Performance:
KP Tissue reported a 6.3% increase in revenue for Q1 2024, largely due to a higher sales volume and favorable sales mix.
Canadian revenues saw a modest increase of 2.1%, while US revenues improved significantly by 12.1%.
Adjusted EBITDA was up significantly by 34.3% year-over-year to $67.1 million, largely thanks to higher sales volume, improved sales mix, lower pulp prices, and favorable freight costs.
The company's net income for Q1 2024 was $9 million, a major improvement over the net loss of $49.3 million in Q1 2023.
Business Progress:
KP Tissue has consolidated its leadership position in the facial tissue market and is amping up investment in marketing, added manufacturing capacity, and product innovation.
The company's Away-From-Home business delivered strong performance in Q1.
The new facial tissue line in Sherbrooke is now producing high-quality, saleable products.
Projected to commence in Q4 2024, the new paper machine construction is on track.
KP Tissue expects the adjusted EBITDA for Q2 2024 to closely mirror that of Q1 2024, despite expected increases in pulp prices.
Further investments are being made in the organization, culture, and brands to foster both present and future growth.
More details: KP TISSUE INC IR
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