Perce Thrower, UK sales, Crown Van Gelder - We ended 2022 on a positive note with a record-breaking volume of our Crown Letsgo inkjet-treated substrates, but due to a sudden cashflow problem, we went into administration in early 2023. The failure of the company was due to high costs of energy and pulp in the second half of 2022, and a drop in demand in the last months of 2022. During the tense weeks that followed we received a lot of positive messages from customers, merchants, OEMs inkjet press manufacturers and other paper mills, which increased our belief that Crown Van Gelder could and should survive. On 1 March we were able to announce that with the help of a new investor we could continue the paper mill as Crown Van Gelder International. The lead partner in the relaunch is EPAC Technologies, with whom we codeveloped our leading inkjet paper over five years ago, and we have continued to collaborate since. This will change the industry in a great way for our customers.
KP Tissue Inc. (KPT) (TSX: KPT) reports the Q3 2023 financial and operational results of KPT and Kruger Products Inc. (Kruger Products). 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-FromHome (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 13.1% interest in Kruger Products.
Kruger Products Q3 2023 Business and Financial Highlights
- Revenue was $473.4 million in Q3 2023 compared to $427.0 million in Q3 2022, an increase of $46.4 million or 10.9%.
- Adjusted EBITDA1 was $72.4 million in Q3 2023, compared to $30.7 million in Q3 2022, an increase of 135.7%.
- Net income was $12.9 million in Q3 2023 compared to a net loss of $38.8 million in Q3 2022, an increase of $51.7 million.
- Declared a quarterly dividend of $0.18 per share to be paid on January 15, 2024
“We are very pleased with our Adjusted EBITDA of $72.4 million in the third quarter of 2023, highlighted by robust sales volume in our Consumer segment and improved productivity from our network assets,” stated KP Tissue’s Chief Executive Officer, Dino Bianco. “We also benefited from a seasonally strong quarter, lower pulp and other input costs, as well as 2022 pricing carry over. As a result, we outperformed expectations despite an uncertain economic environment.”
“Looking ahead to the fourth quarter, we are seeing some moderation in input costs but continued inflationary pressure on our SG&A as labour, marketing, and IT costs, amongst others, continue to rise. We believe volume will continue to be strong and with our previously announced pricing, our margins will be stable.”
details at: https://www.kptissueinc.com/gpc/_media/Document/kp-tissue-inc-q3-2023-earnings-release-eng-vf.pdf