Q2 2024 KP Tissue Inc Earnings Call Transcript
Key Points
- KP Tissue Inc (KPTSF) delivered strong revenue growth of 9.3% in Q2 2024, driven by higher sales volume, favorable sales mix, and improved pricing.
- Adjusted EBITDA increased by 18.6% year over year to $65.3 million, indicating strong profitability.
- The company maintained its leadership position in the Canadian facial tissue market with a 42.8% share and continued to hold top positions in the bathroom tissue and paper towel categories.
- KP Tissue Inc (KPTSF) successfully resolved a labor disruption at its Crabtree Quebec facility with a five-year collective bargaining agreement.
- The company announced a price increase in the consumer segment to mitigate escalating pulp prices, ensuring continued profitable growth.
- Net income decreased by $3.9 million from Q2 2023, totaling $10.6 million in Q2 2024, due to higher foreign exchange losses and greater depreciation expenses.
- Pulp prices reached record levels in Q2 2024, and are expected to remain elevated, impacting cost structures.
- Adjusted EBITDA margin declined sequentially by 120 basis points to 12.8% in Q2 2024, due to increased manufacturing overhead and higher pulp prices.
- The company’s long-term debt stood at $1.01 billion at the end of Q2 2024, reflecting a significant financial burden.
- Despite strong performance, the away-from-home market has not yet recovered to pre-COVID levels, indicating potential vulnerabilities.
Morning, ladies and gentlemen, thank you for standing by. Welcome to KP Tissue Second Quarter 2024 results conference. At this time, all participants are in a listen only mode following the presentation, and we will conduct a question and answers. Instructions will be provided at that time for you to queue up for questions. If at any time you have difficulties hearing the conference, please press star followed by zero for operators. Before turning the meeting over to management, I would like to remind everyone that this conference call is being recorded on Tuesday, August 13, 2024.
I would now like to turn the conference over to Mike Baldesarra, Director, Investor Relations.
Please go ahead.
Thank you, operator, and good morning, ladies and gentlemen, my name is Mike Baldesarra this year, I'm the Director of Investor Relations at KP Tissue. And the purpose of this conference call is to review the financial results of the second quarter of 2024 KP Tissue Inc., which I'll refer to
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