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BUSINESS PRODUCTS & SERVICES | Packaging
karatcup.com

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Founded Year

2018

Stage

IPO | IPO

Total Raised

$1.9M

Date of IPO

4/15/2021

Market Cap

0.37B

About Karat Packaging

Karat (NASDAQ: KRT) specializes in food and beverage packaging products such as paper cups, plastic cups, food containers, dessert cups, cup lids, and more. Its products may be mixed and matched to fulfill diverse needs and budgets, as well as be matched with most major brands such as IP, Dixie, Sweetheart, and Solo, allowing clients to effortlessly switch in between brands. In an effort to be more environmentally friendly, Karat Earth, a plant-based line of compostable products including cups, straws, and utensils, was developed. Karat and Karat Earth also offer custom printing for cups, containers, and napkins for a personalized touch.

Karat Packaging Headquarter Location

6185 Kimball Ave.

Chino, California, 91708,

United States

(626) 965-8882

Latest Karat Packaging News

Karat Packaging Reports 2021 Second Quarter Financial Results

Aug 12, 2021

Los Angeles, California, UNITED STATES CHINO, Calif., Aug. 12, 2021 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced financial results for its 2021 second quarter ended June 30, 2021. Second Quarter 2021 Recent Highlights Net sales of $94.5 million, up 11.6 percent from same period last year. Net sales, excluding personal protective equipment (PPE) sales, rose 69 percent over prior year period. Gross profit of $28.1 million, compared with $28.9 million a year ago and $21.6 million in the preceding first quarter. Gross margin of 29.7 percent versus 34.1 percent in the same period last year, and 28.6 percent in the 2021 first quarter. Acquired a warehouse building and added a distribution facility in South Carolina. Third Quarter 2021 Outlook Net sales expected to increase to $100 million to $102 million. Alan Yu, chief executive officer, said, “Results for the 2021 second quarter continued to reflect strong demand, as well as our nimbleness as a supplier of customized solutions and our ability to provide new products to a diverse and expanding customer base. Sales exceeded expectations and increased at a double-digit pace, paced by our national, online and distributors channels. Excluding PPE products that we primarily sold in last year’s second quarter during the height of the COVID-19 pandemic, top-line growth was nearly 70 percent. “The strong increase in sales was partially offset by freight, material and shipping costs that continued to rise throughout the globe during the second quarter. We quickly and proactively were able to increase prices to pass on these higher costs and protect our margins; as a result, our gross margin improved 110 basis points sequentially. “Market trends remain favorable and are continuing, as more restaurants and foodservice outlets open. As a result, we’re currently targeting net sales to be in the range of $100 million to $102 million for the third quarter. In addition, expected growth in our high-margin online channel and our efforts to pass on higher freight and shipping costs gives us confidence in our ability to improve gross margin, compared to the first and second quarters of 2021.” Mr. Yu added. Second Quarter 2021 Financial Results Net sales for the 2021 second quarter increased 11.6 percent to $94.5 million, from $84.7 million in the same period last year. The increase primarily was driven by greater product penetration with existing customers, as well as new customers added in the quarter. Net sales excluding PPE products, which carry higher margins, increased 69.4 percent to $93.9 million, from $55.4 million in the same period last year. Sales through Karat’s national, distributors and online channels increased significantly. Gross profit for the 2021 second quarter decreased slightly to $28.1 million, from $28.9 million for the same period last year, primarily reflecting the increase in freight and material costs, as well as the decline in high-margin PPE products, partially offset by higher sales. Gross margin was 29.7 percent in the 2021 second quarter, compared with 34.1 percent in the same period last year. Gross margin in the 2021 first quarter was 28.6 percent. Operating expenses for the 2021 second quarter totaled $21.2 million, a 47.4 percent increase from $14.4 million in last year’s second quarter, when Karat was still a privately owned company. The increase was primarily due to higher shipping costs, payroll expenses associated with workforce expansion, an increase in facility costs and higher professional fees. Operating expenses for the 2021 first quarter were $17.9 million. Operating income in the second quarter of 2021 was $6.9 million, or 7.3 percent of net sales, compared with $14.5 million, or 17.1 percent of net sales, in the same period last year. Operating income in the first quarter of 2021 was $3.8 million, or 5.0 percent of net sales. Other income totaled $4.0 million in the 2021 second quarter, compared with other expense of approximately $737,000 in the same period last year. The increase primarily reflects a gain of $5 million in the 2021 second quarter resulting from forgiveness of the company’s Paycheck Protection Program loan that was received in 2020 as part of the Coronavirus Aid, Relief and Economic Security Act. Other income in the 2021 first quarter was approximately $465,000. Net income was $9.3 million in the 2021 second quarter, compared with $9.9 million in the same period last year. Net income margin was 9.9 percent in the second quarter, compared with 11.7 percent a year ago. Net income was $3.1 million, and net income margin was 4.0 percent in the 2021 first quarter. Net income attributable to Karat Packaging for the 2021 second quarter was $9.6 million, or $0.50 per diluted share, compared with $10.1 million, or $0.65 per diluted share a year ago, and $1.8 million, or $0.12 per diluted share in the 2021 first quarter. Adjusted EBITDA totaled $10.1 million in the 2021 second quarter, compared with $16.5 million in the same period last year, and $6.8 million in the 2021 first quarter. Adjusted EBITDA margin was 10.7 percent of net sales, compared with 19.4 percent in the 2020 second quarter, and 9.0 percent in the 2021 first quarter. Adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. Reconciliations of GAAP to non-GAAP results are provided in the tables following this press release. Net cash used in operating activities totaled $2.2 million in the 2021 second quarter, compared with net cash provided by operating activities of $7.2 million in the same period last year. The decrease primarily reflects working capital activity. Six-Month 2021 Financial Results Net sales in the first six months of 2021 increased 14.4 percent to $170.2 million, from $148.8 million in the same period last year. Gross profit rose 6.3 percent to $49.7 million in the first half of 2021, from $46.8 million in the same period last year. Gross margin was 29.2 percent in the first six months of 2021, compared with 31.4 percent in the same period last year. Operating expenses were $39.1 million in the 2021 year-to-date period, an increase of 38.6 percent, compared with $28.2 million in the same period last year. Operating income was $10.6 million in the first six months of 2021, or 6.3 percent of net sales, compared with $18.6 million, or 12.5 percent of net sales, in the same period last year. Other income totaled $4.5 million in the first half of 2021, compared with other expense of $4.1 million in the same period last year. Other income in the 2021 year-to-date period primarily reflects the $5 million gain on PPP loan debt forgiveness recorded in the second quarter. Other expense in the first six months of 2020 primarily reflects a loss of $2.3 million on interest rate swap positions. Net income advanced to $12.4 million for the first six months of 2021, from $10.5 million in the same period last year. Net income margin rose to 7.3 percent in the first six months of 2021, from 7.1 percent in the same period last year. Net income attributable to Karat Packaging was $11.4 million, or $0.66 per diluted share, in the first six months of 2021, compared with $12.5 million, or $0.81 per diluted share, in the same period last year. Adjusted EBITDA totaled $16.9 million in the first six months of 2021, compared with $22.4 million in the same period last year. Adjusted EBITDA margin was 9.9 percent in the 2021 year-to-date period, compared with 15.1 percent in the same period last year. Net cash provided by operating activities totaled $2.3 million in the first six months of 2021, compared with $8.7 million in the same period last year. The decrease primarily reflects working capital activity. Investor Conference Call The Company will host an investor conference call today, August 12, 2021, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its 2021 second quarter results. Phone:

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Expert Collections containing Karat Packaging

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