Karat Packaging Reports 2023 Second Quarter Financial Results
- Karat Packaging Inc. reports strong financial results for Q2 2023, with net sales of $108.7 million and gross profit of $41.9 million, representing a gross margin increase to 38.5%. Net income also rose by 48.3% compared to the prior-year quarter. These positive financial results indicate potential growth and profitability for the company. The company's focus on eco-friendly products is also noteworthy, with a sales objective of 35% of total sales for the full year 2023.
- Karat Packaging Inc. expects a decrease in net sales for Q3 2023, primarily due to implementation delays and lower revenue from logistics services and shipping fees. The company also anticipates a decrease in net sales for the full year 2023 by low single digits. These factors may negatively impact the stock price in the short term.
-- Sustained Strong Margin Expansion --
CHINO, Calif., Aug. 09, 2023 (GLOBE NEWSWIRE) -- Karat Packaging Inc. (Nasdaq: KRT) (“Karat” or the “Company”), a specialty distributor and manufacturer of environmentally friendly, disposable foodservice products and related items, today announced financial results for its quarter ended June 30, 2023.
Second Quarter 2023 Highlights
- Quarterly net sales of
$108.7 million , down 5.3 percent from the prior-year quarter. - Gross profit of
$41.9 million , up 23.3 percent from the prior-year quarter. - Gross margin of 38.5 percent versus 29.6 percent in the prior-year quarter.
- Net income of
$10.7 million , up 48.3 percent from the prior-year quarter. - Net income margin of 9.8 percent versus 6.3 percent in the prior-year quarter.
- Adjusted EBITDA of
$21.1 million , up$9.3 million , or 78.6 percent from the prior-year quarter. - Adjusted EBITDA margin of 19.4 percent versus 10.3 percent in the prior-year quarter.
2023 Guidance
- Net sales for the 2023 third quarter expected to decrease 3 to 4 percentage, compared with prior-year period, primarily due to implementation delays by new chain accounts and in opening new warehouses, and lower revenue from logistics services and shipping fees.
- Net sales for the 2023 fourth quarter expected to increase 10 to 15 percent over the prior year period.
- Net sales for the 2023 full year expected to decrease by low single digits.
- Gross margin goal for the 2023 full year: 36 to 37 percent versus 31.2 percent for 2022.
- Eco-friendly product sales objective for the 2023 full year: 35 percent of total sales, compared with 27 in 2022.
“Karat achieved excellent second quarter results, despite net sales being impacted by price reductions and lower revenue from logistics services and shipping charges, as we had anticipated,” said Alan Yu, Chief Executive Officer. “Sales of our core products grew during the quarter, with volume increasing five percent over the prior year period, and we again experienced solid demand for our eco-friendly products.
“Gross margin remained at record level, as we continued to implement our strategic initiatives, which include reducing our manufacturing footprint in certain locations, increasing import items and improving inventory management and fill-rates.
“We continued to generate strong operating cash flow, and as announced earlier today, our Board of Directors declared a special cash dividend of
Second Quarter 2023 Financial Results
Net sales for the 2023 second quarter decreased 5.3 percent to
Gross profit for the 2023 second quarter increased 23.3 percent from
Gross margin increased to 38.5 percent in the 2023 second quarter, including a 160-basis-point impact from the write-off of raw materials associated with the disposal of certain machinery as discussed above, from 29.6 percent for the same quarter last year. The margin expansion primarily reflected a significant decrease in ocean freight costs. Ocean freight cost as a percentage of net sales was 6.2 percent during the 2023 second quarter, down from 18.0 percent for the same quarter last year. Despite the unfavorable impact from the inventory write-offs, along with price reductions, gross margin benefited from initiatives to increase imported products; scale back manufacturing in high-cost states such as California; shift toward high-margin eco-friendly products, and enhance operating efficiencies.
Operating expenses in the 2023 second quarter were
Operating income in the 2023 second quarter increased 71 percent to
Other income totaled
The effective tax rate for the 2023 second quarter was 23.7 percent, compared with 19.5 percent for the prior-year quarter, with the increase primarily due to the change in the non-taxable non-controlling interest income.
Net income for the 2023 second quarter increased 48.3 percent to
Net income attributable to Karat in the 2023 second quarter advanced to
Adjusted EBITDA, a non-GAAP measure defined below, increased to
Adjusted diluted earnings per common share, a non-GAAP measure defined below, rose to
Six-Month 2023 Financial Results
Net sales for the first six months of 2023 decreased 7.2 percent to
Gross profit for the first six months of 2023 increased 17.2 percent to
Operating expenses were
Operating income increased 50.8 percent to
Total other expense, net was
Net income increased 31.2 percent to
Adjusted EBITDA, a non-GAAP measure defined below, increased to
Adjusted diluted earnings per common share, a non-GAAP measure defined below, rose to
Investor Conference Call
The Company will host an investor conference call today, August 9, 2023, at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss its 2023 second quarter results.
Phone: | 877-418-4045 (domestic); 412-317-6745 (international) |
Conference ID: | Karat Packaging Inc. |
Webcast: | Accessible at http://irkarat.com/; archive available for approximately one year |
About Karat Packaging Inc.
Karat Packaging Inc. is a specialty distributor and manufacturer of a wide range of 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. To learn more about Karat Packaging, please visit the company’s website at www.karatpackaging.com.
Caution Concerning Forward-Looking Statements
Statements made in this release that are not statements of historical or current facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements, including, but not limited to, achieving our financial guidance, are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance, or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including the risks discussed under the heading “Risk Factors” discussed under the caption “Item 1A. Risk Factors” in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption “Item 1A. Risk Factors” in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise that occur after that date, except as required by law.
Investor Relations and Media Contacts:
PondelWilkinson Inc.
Judy Lin/Roger Pondel
310-279-5980
ir@karatpackaging.com
KARAT PACKAGING INC. AND SUBSIDIARIES | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||
(in thousands, except share and per share data) | |||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Net sales | $ | 108,740 | $ | 114,881 | $ | 204,541 | $ | 220,294 | |||||||
Cost of goods sold | 66,879 | 80,917 | 124,536 | 152,041 | |||||||||||
Gross profit | 41,861 | 33,964 | 80,005 | 68,253 | |||||||||||
Operating expenses | |||||||||||||||
Selling expense | 8,871 | 9,468 | 17,572 | 18,805 | |||||||||||
General and administrative expense (including | 17,192 | 16,715 | 33,821 | 32,172 | |||||||||||
Impairment expense and loss (gain) on disposal of machinery | 2,459 | (21 | ) | 2,541 | (17 | ) | |||||||||
Total operating expenses | 28,522 | 26,162 | 53,934 | 50,960 | |||||||||||
Operating income | 13,339 | 7,802 | 26,071 | 17,293 | |||||||||||
Other income (expense) | |||||||||||||||
Rental income (including | 275 | 238 | 522 | 476 | |||||||||||
Other income (expense), net | 118 | (181 | ) | (90 | ) | (263 | ) | ||||||||
Gain (loss) on foreign currency transactions | 322 | 850 | (105 | ) | 983 | ||||||||||
Interest income (including | 519 | 847 | 586 | 2,160 | |||||||||||
Interest expense (including | (573 | ) | (610 | ) | (980 | ) | (1,083 | ) | |||||||
Total other income (expense), net | 661 | 1,144 | (67 | ) | 2,273 | ||||||||||
Income before provision for income taxes | 14,000 | 8,946 | 26,004 | 19,566 | |||||||||||
Provision for income taxes | 3,323 | 1,746 | 6,141 | 4,423 | |||||||||||
Net income | 10,677 | 7,200 | 19,863 | 15,143 | |||||||||||
Net income attributable to noncontrolling interest | 175 | 856 | 356 | 2,132 | |||||||||||
Net income attributable to Karat Packaging Inc. | $ | 10,502 | $ | 6,344 | $ | 19,507 | $ | 13,011 | |||||||
Basic and diluted earnings per share: | |||||||||||||||
Basic | $ | 0.53 | $ | 0.32 | $ | 0.98 | $ | 0.66 | |||||||
Diluted | $ | 0.53 | $ | 0.32 | $ | 0.98 | $ | 0.65 | |||||||
Weighted average common shares outstanding, basic | 19,886,585 | 19,809,417 | 19,887,023 | 19,808,505 | |||||||||||
Weighted average common shares outstanding, diluted | 19,953,510 | 19,926,956 | 19,947,155 | 19,914,044 |
KARAT PACKAGING INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||||||
(in thousands, except share and per share data) | |||||||
June 30, 2023 | December 31, 2022 | ||||||
Assets | |||||||
Current assets | |||||||
Cash and cash equivalents (including | $ | 18,257 | $ | 16,041 | |||
Short-term investments (including | 28,000 | — | |||||
Accounts receivable, net of allowance for doubtful accounts of | 32,816 | 29,912 | |||||
Inventories | 76,295 | 71,206 | |||||
Prepaid expenses and other current assets (including | 5,631 | 6,641 | |||||
Total current assets | 160,999 | 123,800 | |||||
Property and equipment, net (including | 95,705 | 95,568 | |||||
Deposits | 5,997 | 12,413 | |||||
Goodwill | 3,510 | 3,510 | |||||
Intangible assets, net | 340 | 353 | |||||
Operating right-of-use assets | 18,404 | 15,713 | |||||
Other assets (including | 1,970 | 818 | |||||
Total assets | $ | 286,925 | $ | 252,175 | |||
Liabilities and Stockholders’ Equity | |||||||
Current liabilities | |||||||
Accounts payable (including | $ | 23,384 | $ | 18,559 | |||
Accrued expenses (including | 7,946 | 9,005 | |||||
Related party payable | 7,127 | 4,940 | |||||
Income taxes payable | 5,105 | — | |||||
Customer deposits (including | 979 | 1,281 | |||||
Long-term debt, current portion (including | 971 | 957 | |||||
Operating lease liabilities, current portion | 5,078 | 4,511 | |||||
Other payables | 132 | — | |||||
Total current liabilities | 50,722 | 39,253 | |||||
Deferred tax liability | 5,156 | 5,156 | |||||
Long-term debt, net of current portion and debt discount of | 49,094 | 41,558 | |||||
Operating lease liabilities, net of current portion | 13,823 | 11,623 | |||||
Other liabilities (including | 2,824 | 2,652 | |||||
Total liabilities | 121,619 | 100,242 | |||||
Karat Packaging Inc. stockholders’ equity | |||||||
Preferred stock, | — | — | |||||
Common stock, | 20 | 20 | |||||
Additional paid in capital | 86,267 | 85,792 | |||||
Treasury stock, | (248 | ) | (248 | ) | |||
Retained earnings | 68,660 | 56,118 | |||||
Total Karat Packaging Inc. stockholders’ equity | 154,699 | 141,682 | |||||
Noncontrolling interest | 10,607 | 10,251 | |||||
Total stockholders’ equity | 165,306 | 151,933 | |||||
Total liabilities and stockholders’ equity | $ | 286,925 | $ | 252,175 |
KARAT PACKAGING, INC. AND SUBSIDIARIES | |||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | |||||||
(in thousands) | |||||||
Six Months Ended June 30, | |||||||
2023 | 2022 | ||||||
Cash flows from operating activities | |||||||
Net income | $ | 19,863 | $ | 15,143 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization (including | 5,350 | 5,148 | |||||
Adjustments to allowance for doubtful accounts | (843 | ) | 1,151 | ||||
Adjustments to inventory reserve | (408 | ) | 513 | ||||
Write-off of inventory | 2,944 | — | |||||
Impairment of deposits | 523 | — | |||||
Loss (gain) on disposal of machinery and equipment | 2,018 | (17 | ) | ||||
Change in fair value of interest rate swap (including | — | (2,159 | ) | ||||
Amortization of loan fees (including | 40 | 18 | |||||
Stock-based compensation | 493 | 1,176 | |||||
Amortization of operating right-of-use assets | 2,281 | 1,790 | |||||
(Increase) decrease in operating assets | |||||||
Accounts receivable (including | (2,061 | ) | (6,848 | ) | |||
Inventories | (7,625 | ) | (27,516 | ) | |||
Prepaid expenses and other current assets (including | 478 | (1,697 | ) | ||||
Other assets (including | (36 | ) | (76 | ) | |||
Increase (decrease) in operating liabilities | |||||||
Accounts payable (including | 4,006 | 4,855 | |||||
Accrued expenses (including | (1,059 | ) | 552 | ||||
Related party payable | 2,187 | 1,201 | |||||
Income taxes payable | 5,105 | (85 | ) | ||||
Customer deposits (including | (302 | ) | 404 | ||||
Operating lease liability | (2,205 | ) | (1,790 | ) | |||
Other liabilities (including | 172 | 9 | |||||
Other payables | 132 | 482 | |||||
Net cash provided by (used in) operating activities | $ | 31,053 | $ | (7,746 | ) | ||
Cash flows from investing activities | |||||||
Purchases of property and equipment | (1,816 | ) | (1,615 | ) | |||
Proceeds from disposal of property and equipment | 28 | 35 | |||||
Payments for costs incurred from sale of machinery and equipment | (209 | ) | — | ||||
Deposits paid for joint venture investment | (2,900 | ) | (4,000 | ) | |||
Deposits refunded from joint venture investment | 6,900 | — | |||||
Deposit refund from cancelled property and equipment purchase | 503 | — | |||||
Deposits paid for property and equipment | (3,823 | ) | (7,596 | ) | |||
Proceeds from settlement of interest rate swap (including | — | 825 | |||||
Purchase of short-term investments (including | (28,000 | ) | — | ||||
Net cash used in investing activities | $ | (29,317 | ) | $ | (12,351 | ) | |
Cash flows from financing activities | |||||||
Proceeds from line of credit | — | 20,100 | |||||
Payments on line of credit | — | (8,500 | ) | ||||
Proceeds from long-term debt (including | 8,000 | 27,477 | |||||
Payments for lender fees | (61 | ) | — | ||||
Payments on long-term debt (including | (476 | ) | (21,139 | ) | |||
Tax withholding on vesting of restricted stock units | (18 | ) | — | ||||
Proceeds from exercise of common stock options | — | 51 | |||||
Dividends paid to shareholders | (6,965 | ) | — | ||||
Payments of noncontrolling interest tax withholding (including | — | (874 | ) | ||||
Net cash provided by financing activities | $ | 480 | $ | 17,115 | |||
Net increase (decrease) in cash and cash equivalents | 2,216 | (2,982 | ) | ||||
Cash and cash equivalents | |||||||
Beginning of period | $ | 16,041 | $ | 6,483 | |||
End of period | $ | 18,257 | $ | 3,501 | |||
Supplemental disclosures of non-cash investing and financing activities: | |||||||
Transfers from deposit to property and equipment | $ | 5,273 | $ | 5,107 | |||
Non-cash purchases of property and equipment | $ | 819 | $ | — | |||
Supplemental disclosures of cash flow information: | |||||||
Cash paid for income tax | $ | 200 | $ | 5,830 | |||
Cash paid for interest | $ | 1,026 | $ | 1,074 |
KARAT PACKAGING INC. AND SUBSIDIARIES | |||||||||||||||||||||
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (UNAUDITED) | |||||||||||||||||||||
(in thousands, except per share amounts) | |||||||||||||||||||||
Reconciliation of Adjusted EBITDA and Adjusted EBITDA Margin: | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
Amounts | % of net sale | Amounts | % of net sale | Amounts | % of net sale | Amounts | % of net sale | ||||||||||||||
Net income: | $ | 10,677 | 9.8 | % | $ | 7,200 | 6.3 | % | $ | 19,863 | 9.7 | % | $ | 15,143 | 6.9 | % | |||||
Add (deduct): | |||||||||||||||||||||
Interest income | (519 | ) | (0.5 | ) | (847 | ) | (0.7 | ) | (586 | ) | (0.3 | ) | (2,160 | ) | (1.0 | ) | |||||
Interest expense | 573 | 0.5 | 610 | 0.5 | 980 | 0.5 | 1,083 | 0.5 | |||||||||||||
Provision for income taxes | 3,323 | 3.1 | 1,746 | 1.5 | 6,141 | 3.0 | 4,423 | 2.0 | |||||||||||||
Depreciation and amortization | 2,717 | 2.5 | 2,564 | 2.2 | 5,350 | 2.7 | 5,148 | 2.4 | |||||||||||||
Stock-based compensation expense | 216 | 0.2 | 565 | 0.5 | 493 | 0.2 | 1,176 | 0.5 | |||||||||||||
Write-off of inventory (1) | 1,710 | 1.6 | — | — | 1,710 | 0.8 | — | — | |||||||||||||
Impairment expense and loss on disposal of machinery (1) | 2,445 | 2.2 | — | — | 2,445 | 1.2 | — | — | |||||||||||||
Adjusted EBITDA | $ | 21,142 | 19.4 | % | $ | 11,838 | 10.3 | % | $ | 36,396 | 17.8 | % | $ | 24,813 | 11.3 | % |
Reconciliation of Adjusted Diluted Earnings Per Common Share | Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Diluted earnings per common share: | $ | 0.53 | $ | 0.32 | $ | 0.98 | $ | 0.65 | |||||||
Add (deduct): | |||||||||||||||
Stock-based compensation expense | 0.01 | 0.03 | 0.02 | 0.06 | |||||||||||
Write-off of inventory (1) | 0.09 | — | 0.09 | — | |||||||||||
Impairment expense and loss on disposal of machinery (1) | 0.12 | — | 0.12 | — | |||||||||||
Income tax impact of adjustments | (0.06 | ) | (0.01 | ) | (0.06 | ) | (0.01 | ) | |||||||
Adjusted diluted earnings per common shares | $ | 0.69 | $ | 0.34 | $ | 1.15 | $ | 0.70 |
Reconciliation of Adjusted EBITDA by Entity: | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Karat Packaging | Global Wells | Eliminations | Consolidated | Karat Packaging | Global Wells | Eliminations | Consolidated | ||||||||||||||||||
Net income (loss): | $ | 10,493 | $ | 203 | $ | (19 | ) | $ | 10,677 | $ | 19,533 | $ | 412 | $ | (82 | ) | $ | 19,863 | |||||||
Add: | |||||||||||||||||||||||||
Interest income | (336 | ) | (183 | ) | — | (519 | ) | (387 | ) | (216 | ) | 17 | (586 | ) | |||||||||||
Interest expense | 8 | 565 | — | 573 | 26 | 971 | (17 | ) | 980 | ||||||||||||||||
Provision for income taxes | 3,323 | — | — | 3,323 | 6,141 | — | — | 6,141 | |||||||||||||||||
Depreciation and amortization | 2,413 | 304 | — | 2,717 | 4,743 | 607 | — | 5,350 | |||||||||||||||||
Stock-based compensation expense | 216 | — | — | 216 | 493 | — | — | 493 | |||||||||||||||||
Write-off of inventory (1) | 1,710 | — | — | 1,710 | 1,710 | — | — | 1,710 | |||||||||||||||||
Impairment expense and loss on disposal of machinery (1) | 2,445 | — | — | 2,445 | 2,445 | — | — | 2,445 | |||||||||||||||||
Adjusted EBITDA | $ | 20,272 | $ | 889 | $ | (19 | ) | $ | 21,142 | $ | 34,704 | $ | 1,774 | $ | (82 | ) | $ | 36,396 |
(1) The write-off of inventory and impairment expense and loss on disposal of machinery represent costs incurred in connection with the scaling back of production in certain locations. As part of the execution of this strategy, certain machinery and equipment was disposed of or impaired, and raw materials associated with those machinery and equipment were written-off.
Reconciliation of Adjusted EBITDA by Entity: | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2022 | |||||||||||||||||||||
Karat Packaging | Global Wells | Eliminations | Consolidated | Karat Packaging | Global Wells | Eliminations | Consolidated | ||||||||||||||||
Net income (loss): | $ | 6,255 | $ | 990 | $ | (45 | ) | $ | 7,200 | $ | 13,036 | $ | 2,465 | $ | (358 | ) | $ | 15,143 | |||||
Add (deduct) | |||||||||||||||||||||||
Interest income | — | (874 | ) | 27 | (847 | ) | — | (2,187 | ) | 27 | (2,160 | ) | |||||||||||
Interest expense | 149 | 488 | (27 | ) | 610 | 174 | 936 | (27 | ) | 1,083 | |||||||||||||
Provision for income taxes | 1,746 | — | — | 1,746 | 4,423 | — | — | 4,423 | |||||||||||||||
Depreciation and amortization | 2,261 | 303 | — | 2,564 | 4,541 | 607 | — | 5,148 | |||||||||||||||
Stock-based compensation expense | 565 | — | — | 565 | 1,176 | — | — | 1,176 | |||||||||||||||
Adjusted EBITDA | $ | 10,976 | $ | 907 | $ | (45 | ) | $ | 11,838 | $ | 23,350 | $ | 1,821 | $ | (358 | ) | $ | 24,813 |
Use of Non-GAAP Financial Measures
Karat utilizes certain financial measures and key performance indicators that are not defined by, or calculated in accordance with, GAAP to assess our financial and operating performance. A non-GAAP financial measure is defined as a numerical measure of a company’s financial performance that (i) excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the comparable measure calculated and presented in accordance with GAAP in the statement of operations; or (ii) includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the comparable GAAP measure so calculated and presented. The following non-GAAP measures are presented in this press release:
- Adjusted EBITDA is calculated as net income before interest income and interest expense, provision for income taxes, depreciation and amortization, stock-based compensation expense, write-off of certain inventory items outside the normal course of business, and impairment expense and loss on disposal of machinery outside the normal course of business.
- Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by net sales.
- Adjusted diluted earnings per common share is calculated as diluted earnings per common share, plus the per share impact of stock-based compensation, write-off of certain inventory items outside the normal course of business, impairment expense and loss on disposal of machinery outside the normal course of business, and adjusted for the related tax effects of these adjustments.
We believe the above-mentioned non-GAAP measures, which are used by management to assess the core performance of Karat, provide useful information and additional clarity of our operating results to our investors in their own evaluation of the core performance of Karat and facilitate a comparison of such performance from period to period. These are not measurements of financial performance or liquidity under GAAP and should not be considered in isolation or construed as substitutes for net income or other cash flow data prepared in accordance with GAAP for purposes of analyzing our profitability or liquidity. These measures should be considered in addition to, and not as a substitute for, revenue, net income, earnings per share, cash flows or other measures of financial performance prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies, as other companies may calculate such financial results differently.
KARAT PACKAGING INC. AND SUBSIDIARIES | |||||||||||
NET SALES BY CATEGORY (UNAUDITED) | |||||||||||
(In Thousands) | |||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||
(in thousands) | |||||||||||
National and regional chains | $ | 23,827 | $ | 25,081 | $ | 45,195 | $ | 49,987 | |||
Distributors | 62,590 | 66,399 | 117,237 | 125,523 | |||||||
Online | 15,493 | 15,491 | 29,148 | 29,040 | |||||||
Retail | 6,830 | 7,910 | 12,961 | 15,744 | |||||||
$ | 108,740 | $ | 114,881 | $ | 204,541 | $ | 220,294 |
FAQ
What were the financial results for Karat Packaging Inc. in Q2 2023?
What are the expectations for net sales in Q3 2023?
What is the gross margin goal for the full year 2023?