KP Tissue Releases Fourth Quarter and Full Year 2022 Financial Results

KP Tissue’s Chief Executive Officer, Dino Bianco

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Recovery continues, driving both Revenue and Profit growth

“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.


Mississauga (ON), March 9, 2023 - KP Tissue Inc. (KPT) (TSX: KPT) reports the Q4 2022 and full year 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 Bonterra™) and the Away-From-Home (AFH) 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 13.7% interest in Kruger Products.

KPLP Q4 2022 Business and Financial Highlights

  • Revenue was $458.1 million in Q4 2022 compared to $424.1 million in Q4 2021, an increase of $34.0 million or 8.0%.
  • Adjusted EBITDA1 was $44.4 million in Q4 2022, compared to $38.3 million in Q4 2021, an increase of 15.8%.
  • Net income was $16.0 million in Q4 2022, compared to net income of $42.3 million in Q4 2021, a decrease of $26.3 million.
  • Declared a quarterly dividend of $0.18 per share to be paid on April 17, 2023.

KPLP Full Year 2022 Financial Highlights  

  • Revenue was $1,681.4 million in 2022 compared to $1,465.2 million in 2021, an increase of $216.2 million or 14.8%.
  • Adjusted EBITDA1 was $116.0 million in 2022, down from $153.4 million in 2021, a decrease of 24.4%.
  • Net loss was $56.9 million in 2022, compared to net income of $42.0 million in 2021, a decrease of $98.9 million.

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Source: KP Tissue

 

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