Karat Packaging, Inc. ( (KRT) ) has released its Q1 earnings. Here is a breakdown of the information Karat Packaging, Inc. presented to its investors.
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Karat Packaging Inc. is a specialty distributor and manufacturer of eco-friendly disposable foodservice products, catering primarily to the restaurant and foodservice industry across the United States.
In its first quarter of 2025, Karat Packaging reported a robust performance with net sales reaching $103.6 million, marking an 8.4% increase from the previous year. The company highlighted its strategic positioning to manage supply chain challenges and global trade uncertainties effectively.
Key financial metrics for the quarter include a gross profit of $40.8 million, maintaining a gross margin of 39.3%. Despite a slight dip in net income margin from 6.8% to 6.6%, net income rose to $6.8 million. Adjusted EBITDA, however, saw a decline to $11.9 million from $13.5 million in the previous year, reflecting a margin decrease to 11.5%.
Looking ahead, Karat Packaging anticipates continued growth in net sales and aims to maintain its gross margin for the second quarter of 2025. The company remains focused on expanding its market share, particularly in Texas and the Midwest, while also growing its online business, which saw a 20% sales increase in the first quarter.