Karat Packaging Provides Financial Outlook for Second Quarter 2021

Rhea-AI Summary

Karat Packaging Inc. (Nasdaq: KRT) anticipates net sales between $92 million and $94 million for Q2 2021, driven by increased demand and price adjustments. The company specializes in eco-friendly disposable foodservice products widely used by restaurants across the U.S. Its product range includes containers, tableware, and other related items. Karat’s commitment to sustainable practices is evident in its Karat Earth® line, which emphasizes renewable resources. The press release also includes cautionary statements regarding forward-looking projections.

Positive

• Projected net sales of $92 million to $94 million for Q2 2021.
• Increased demand allows for price hikes, potentially enhancing revenue.
• Strong focus on environmentally friendly products, which aligns with growing market trends.

Negative

• None.

CHINO, Calif., May 28, 2021 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced it expects net sales for the 2021 second quarter to be in the range of $92 million to $94 million, as it continues to raise prices due to higher demand.

About Karat Packaging Inc.

Karat Packaging is a specialty distributor and manufacturer of a wide range of environmentally friendly, disposable foodservice products and related items, primarily used by national and regional restaurants and in foodservice settings throughout the United States. Its products include food and take-out containers, bags, tableware, cups, lids, cutlery, straws, specialty beverage ingredients, equipment, gloves and other products. The Company’s eco-friendly Karat Earth^® line offers quality, sustainably focused products that are made from renewable resources. Karat Packaging also offers customized solutions, including new product development and design, printing, and logistics services.

Caution Concerning Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to numerous conditions, many of which are beyond the control of the company, including those set forth in the Risk Factors section of the company’s registration statement for the initial public offering filed with the SEC on April 14, 2021. Copies are available on the SEC’s website at www.sec.gov. Karat Packaging undertakes no obligation to update these statements for revisions or changes after the date of this release, except as required by law.

Investor Relations and Media Contact:         
PondelWilkinson Inc.        
Judy Lin Sfetcu/Jeff Misakian/Roger Pondel        
310-279-5980        
karat@pondel.com         

FAQ

What is the net sales forecast for Karat Packaging Inc. in Q2 2021?

Karat Packaging Inc. expects net sales to be between $92 million and $94 million in Q2 2021.

How is Karat Packaging adapting to market demand?

Karat Packaging is raising prices due to higher demand for its products.

What type of products does Karat Packaging specialize in?

Karat Packaging specializes in environmentally friendly disposable foodservice products.

What is the significance of the Karat Earth® line?

The Karat Earth® line features eco-friendly products made from renewable resources.

Where can I find the risk factors associated with Karat Packaging's projections?

Risk factors can be found in the registration statement for their IPO filed with the SEC.