Latest news with #KrugerProducts
Toronto Star
6 days ago
- Business
- Toronto Star
KP Tissue Releases Second Quarter 2025 Financial Results
MISSISSAUGA, Ontario, Aug. 13, 2025 (GLOBE NEWSWIRE) — KP Tissue Inc. (KPT) (TSX: KPT) reports the Q2 2025 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 Bonterra®) and the Away-From-Home (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 12.2% interest in Kruger Products. Kruger Products Q2 2025 Business and Financial Highlights Revenue was $536.1 million in Q2 2025 compared to $509.8 million in Q2 2024, an increase of $26.3 million or 5.2%. Adjusted EBITDA1 was $72.5 million in Q2 2025 compared to $65.3 million in Q2 2024, an increase of 11.0%. Net income was $22.1 million in Q2 2025 compared to $10.6 million in Q2 2024, an increase of $11.5 million. Declared a quarterly dividend of $0.18 per share to be paid on October 15, 2025. 'We are pleased with our overall performance in the second quarter of 2025 with Adjusted EBITDA improving 11% year-over-year to $72.5 million,' stated KP Tissue's Chief Executive Officer, Dino Bianco. 'U.S. revenue growth slowed down in Q2 2025 due to front-loaded shipments made during the previous quarter to mitigate potential tariffs, along with softness in the AFH market. Nevertheless, U.S. sales have grown 12% after six months into 2025 and represent a key growth driver for Kruger Products. 'In early July, we announced an additional investment of approximately US$35 million at our Memphis manufacturing facility to deploy a state-of-the-art, multi-purpose converting line for bathroom tissue and paper towels. This initiative is part of a broader strategy to drive efficiency and support our growing U.S. business,' Mr. Bianco added. ARTICLE CONTINUES BELOW Outlook for Q3 2025 We expect a stronger performance in Q3 2025, with Adjusted EBITDA1 in the range of $75 million to $80 million. Kruger Products Q2 2025 Financial Results Revenue was $536.1 million in Q2 2025 compared to $509.8 million in Q2 2024, an increase of $26.3 million or 5.2%. The increase in revenue was primarily due to higher sales volume in the Consumer segment and favourable selling prices across both segments, partially offset by somewhat lower sales volume in the AFH segment. Revenue was also favourably impacted by foreign exchange fluctuations on U.S. dollar sales. Cost of sales was $462.2 million in Q2 2025 compared to $431.2 million in Q2 2024, an increase of $31.0 million or 7.2%. The increase in cost of sales was primarily due to higher sales volume and pulp prices along with the unfavourable impact of foreign exchange fluctuations on U.S. dollar costs and unfavourable mill performance at our Memphis site, partially offset by lower manufacturing overhead costs due primarily to overhead cost absorption resulting from higher inventory levels in the quarter and costs related to the Q2 2024 labour disruption that did not recur in Q2 2025. Freight rates were higher compared to Q2 2024. As a percentage of revenue, cost of sales was 86.2% in Q2 2025 compared to 84.6% in Q2 2024. Selling, general and administrative (SG&A) expenses were $47.2 million in Q2 2025 compared to $42.5 million in Q2 2024, an increase of $4.7 million or 11.1%. The increase was primarily due to additional investment in IT and foreign exchange losses on working capital compared to gains in Q2 2024, partially offset by lower operational and corporate initiatives compared to the year ago quarter. As a percentage of revenue, SG&A expenses were 8.8% in Q2 2025 compared to 8.3% in Q2 2024. Adjusted EBITDA1 was $72.5 million in Q2 2025 compared to $65.3 million in Q2 2024, an increase of $7.2 million or 11.0%. The increase was primarily due to higher sales volumes and selling prices along with lower manufacturing overhead costs as a result of overhead cost absorption, partially offset by higher pulp prices and unfavourable mill performance at our Memphis site along with higher freight rates and SG&A expenses. Net income was $22.1 million in Q2 2025 compared to $10.6 million in Q2 2024, an increase of $11.5 million. The increase was primarily due to a foreign exchange gain and higher Adjusted EBITDA1, partially offset by higher depreciation expense resulting from the Sherbrooke Expansion Project and a one-time expense related to reducing the useful life of certain older assets in our Memphis site and higher interest expense and other finance costs. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Kruger Products Q2 2025 Liquidity Total liquidity, representing cash and availability under the revolving credit agreements, was $293.1 million as of June 30, 2025. KPT Q2 2025 Financial Results KPT had net income of $2.6 million in Q2 2025. Included in net income was $2.8 million representing KPT's share of Kruger Products' net income, a dilution gain of $0.1 million and depreciation expense of $0.3 million related to adjustments to carrying amounts on acquisition. Memphis Site Investment During Q2 2025, Kruger Products completed the shutdown of the remaining LDC assets at its Memphis, TN site. Subsequent to the end of the quarter, on July 9, 2025, Kruger Products also announced that its subsidiary, K.T.G. (USA) Inc., will be investing approximately USD$35 million in a new converting line for bathroom tissue and paper towels at its site in Memphis, TN. These actions together will drive efficiency in our Memphis site by shutting down older assets, focusing on premium products supported by modern equipment and on-site warehousing. Dividends on Common Shares The Board of Directors of KPT declared a quarterly dividend of $0.18 per share to be paid on October 15, 2025 to shareholders of record at the close of business on September 30, 2025. Additional Information For additional information please refer to Management's Discussion and Analysis (MD&A) of KPT and Kruger Products for the second quarter ended June 30, 2025 available on SEDAR+ at or our website at Second Quarter Results Conference Call Information KPT will hold its second quarter conference call on Wednesday, August 13, 2025 at 8:30 a.m. Eastern Time. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Via telephone: 1-888-699-1199 or 416-945-7677 Via the internet at: Presentation material referenced during the conference call will be available at A rebroadcast of the conference call will be available until midnight, August 20, 2025 by dialing 1-888-660-6345 or 289-819-1450 and entering passcode 53401. The replay of the webcast will remain available on the website until midnight, August 20, 2025. About KP Tissue Inc. KPT was created to acquire, and its business is limited to holding, a limited equity interest in Kruger Products, which is accounted for as an investment on the equity basis. KPT currently holds a 12.2% interest in Kruger Products. For more information visit About Kruger Products Inc. Kruger Products is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra®. In the U.S., Kruger Products manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. Kruger Products has approximately 3,000 employees and operates ten FSC® COC-certified (FSC® C-104904) production facilities in North America. For more information visit Non-GAAP Financial Measures This press release uses certain non-GAAP financial measures which Kruger Products believes provide useful information to management of Kruger Products and the readers of the financial information in measuring the financial performance and financial condition of Kruger Products. These measures do not have a standardized meaning prescribed by GAAP and therefore may not be comparable to similarly titled measures presented by other companies. An example of such a measure is Adjusted EBITDA. Adjusted EBITDA is not a measurement of operating performance computed in accordance with GAAP and should not be considered as a substitute for operating income, net income or cash flows from operating activities computed in accordance with GAAP. 'Adjusted EBITDA' is calculated by Kruger Products as net income (loss) before (i) interest expense and other finance costs, (ii) income taxes, (iii) depreciation, (iv) amortization, (v) loss on sale of non-financial assets, (vi) loss (gain) on disposal of property, plant and equipment, (vii) foreign exchange loss (gain), (viii) costs related to restructuring activities and (ix) changes in amortized cost of Partnership units liability. A reconciliation of Adjusted EBITDA to the relevant reported results can be found in the Segment and Geographic Results table of this news release. ARTICLE CONTINUES BELOW ARTICLE CONTINUES BELOW Forward-Looking Statements Certain statements in this press release about KPT's and Kruger Products' current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words 'may', 'will', 'would', 'should', 'could', 'expects', 'plans', 'intends', 'trends', 'indications', 'anticipates', 'believes', 'estimates', 'predicts', 'likely' or 'potential' or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements. The forward-looking statements are based on certain key expectations and assumptions made by KPT or Kruger Products, including the moderation of inflationary pressure on input costs and continued inflationary pressure on SG&A as labour, marketing and IT costs continue to rise. Although KPT and Kruger Products believe that the expectations and assumptions on which such forward-looking information is based are reasonable, undue reliance should not be placed on the forward-looking statements since no assurance can be given that such expectations and assumptions will prove to be correct. The outlook provided in respect of Adjusted EBITDA1 for Q3 2025 is forward-looking information and is based on the assumptions and subject to the risk and uncertainties referred to below. The purpose of the outlook is to provide the reader with an indication of management's expectations, at the date of this press release, regarding Kruger Products' future financial performance. Readers are cautioned that this information may not be appropriate for other purposes. Many factors could cause Kruger Products' actual results, level of activity, performance or achievements or future events or developments (which could in turn affect the economic benefits derived from KPT's economic interest in Kruger Products), to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the following factors, which are discussed in greater detail in the 'Risk Factors – Risks Related to Kruger Products' Business' section of the KPT Annual Information Form dated March 5, 2025 available on SEDAR+ at Kruger Inc.'s influence over Kruger Products; Kruger Products' reliance on Kruger Inc.; consequences of an event of insolvency relating to Kruger Inc.; risks associated with the ownership of the TAD Sherbrooke Project; risks associated with the operation of the TAD Sherbrooke Project; risks associated with the Sherbrooke Expansion Project; operational risks; significant increases in input costs; reduction in supply of fibre; increased pricing pressure and intense competition; Kruger Products' inability to innovate effectively; adverse economic conditions; dependence on key retail trade customers; damage to the reputation of Kruger Products or Kruger Products' brands; Kruger Products' sales being less than anticipated; Kruger Products' failure to implement its business and operating strategies; Kruger Products' obligation to make regular capital expenditures; Kruger Products entering into unsuccessful acquisitions; Kruger Products' dependence on key personnel; Kruger Products' inability to retain its existing customers or obtain new customers; Kruger Products' loss of key suppliers; Kruger Products' failure to adequately protect its intellectual property rights; Kruger Products' reliance on third party intellectual property licenses; adverse litigation and other claims affecting Kruger Products; material expenditures due to comprehensive environmental regulation affecting Kruger Products' cash flow; Kruger Products' pension obligations are significant and can be materially higher than predicted if Kruger Products Management's underlying assumptions are incorrect; labour disputes adversely affecting Kruger Products' cost structure and Kruger Products' ability to run its plants; exchange rate and U.S. competitors; Kruger Products' inability to service all of its indebtedness; exposure to potential consumer product liability; covenant compliance; interest rate and refinancing risk; and risks relating to information technology; cyber-security; insurance; internal controls, trade and tax. Readers should not place undue reliance on forward-looking statements made herein. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information contained herein is made as of the date of press release and KPT undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent or otherwise, unless required by applicable securities laws. INFORMATION: Francois Paroyan General Counsel and Corporate Secretary KP Tissue Inc. 905-812-6936 INVESTORS: Doris Grbic Director, Investor Relations KP Tissue Inc. 437-882-2596 IR@ ___________________ 1 Adjusted EBITDA is a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures section of this news release for more information on these measures
Yahoo
14-07-2025
- Business
- Yahoo
KP Tissue to Release its Financial Results and those of Kruger Products Inc. for the Second Quarter of 2025
MISSISSAUGA, Ontario, July 14, 2025 (GLOBE NEWSWIRE) -- KP Tissue Inc. (KPT) (TSX:KPT), which holds an interest in Kruger Products Inc., will release the financial results for KPT and Kruger Products Inc. for the second quarter of 2025 on Wednesday, August 13, 2025 before the market opens. KPT will hold its conference call the same day at 8:30 a.m. Eastern Time. Conference Call InformationVia telephone: 1-888-699-1199 or 416-945-7677Via internet: Presentation material referenced during the conference call will be available at Conference Call RebroadcastA rebroadcast of the conference call will be available until midnight, August 20, 2025 by dialing 1-888-660-6345 or 289-819-1450 and entering passcode 53401. The replay of the webcast will remain available on the website until midnight, August 20, 2025. About KP Tissue Inc. (KPT)KPT was created to acquire, and its business is limited to holding, a limited equity interest in Kruger Products, which is accounted for as an investment on the equity basis. KPT currently holds a 12.3% interest in Kruger Products. For more information visit About Kruger Products Inc. (Kruger Products)Kruger Products is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra®. In the U.S., Kruger Products manufactures the White Cloud® brand, as well as many private label products. The Away From Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. Kruger Products has approximately 3,000 employees and operates ten FSC® COC-certified (FSC® C-104904) production facilities in North America. For more information visit INFORMATION:François ParoyanGeneral Counsel and Corporate SecretaryKP Tissue INVESTORS: Doris GrbicDirector, Investor RelationsKP Tissue Inc. 437-882-2596IR@ SOURCE KP Tissue Inc.
Yahoo
23-06-2025
- Business
- Yahoo
KP Tissue Inc. Reports on Shareholders' Voting Results for the Election of Directors
NOT FOR DISTRIBUTION IN THE U.S.A. OR OVER U.S. WIRE SERVICES MISSISSAUGA, Ontario, June 23, 2025 (GLOBE NEWSWIRE) -- KP Tissue Inc. (KPT) (TSX: KPT) held its Annual Meeting of shareholders today. All candidates proposed as directors were duly elected to the Board of Directors of KPT by a majority of the votes cast by shareholders present or represented by proxy at the Meeting, as follows: Name For Against Number % Number % François Vimard 2,192,727 96.56 78,163 3.44 James Hardy 2,193,144 96.58 77,746 3.42 Sarah Kruger 2,203,404 97.03 67,486 2.97 John 'Jay' Wright 2,185,535 96.24 85,355 3.80 Shareholders present or represented by proxy at the Meeting also approved the appointment of PricewaterhouseCoopers LLP as auditors of KPT (98.25% of votes in favour). About KP Tissue Inc. KPT was created to acquire, and its business is limited to holding, a limited equity interest in Kruger Products, which is accounted for as an investment on the equity basis. KPT currently holds a 12.3% interest in Kruger Products. For more information visit About Kruger Products Inc. Kruger Products is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra®. In the U.S., Kruger Products manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. Kruger Products has approximately 3,000 employees and operates ten FSC® COC-certified (FSC® C-104904) production facilities in North America. For more information visit INFORMATION:François ParoyanGeneral Counsel and Corporate SecretaryKP Tissue INVESTORS: Doris GrbicDirector, Investor RelationsKP Tissue Inc. 437-882-2596IR@ in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Hamilton Spectator
16-06-2025
- Business
- Hamilton Spectator
KP Tissue Announces Its Annual Meeting of Shareholders
MISSISSAUGA, Ontario, June 16, 2025 (GLOBE NEWSWIRE) — KP Tissue Inc. (KPT) (TSX: KPT) will hold its Annual Meeting of Shareholders (the Meeting) on June 23, 2025 at 2:00 p.m. (Eastern Time). The Meeting will be held in a virtual-only format via live webcast at . For shareholders, media and other interested parties who are unable to attend, the presentation material will also be available at . YOUR VOTE IS IMPORTANT – PLEASE VOTE TODAY The Board of Directors of KP Tissue unanimously recommends that Shareholders vote FOR ALL resolutions. Shareholders are encouraged to read the management information circular and to vote as soon as possible. The deadline for voting your shares by proxy is 2:00 PM (Eastern Time) on Thursday, June 19, 2025. For access to all relevant documents related to the Meeting, complete Meeting details and information on how to vote, please visit . Shareholder Questions & Voting Assistance Shareholders who have questions about voting their shares or require assistance may contact KPT's proxy solicitation agent and shareholder communications advisor: Laurel Hill Advisory Group Toll Free | 1-877-452-7184 (for Shareholders in North America) International | +1 416-304-0211 (for Shareholders outside Canada and the U.S.) By Email | assistance@ About KP Tissue Inc. (KPT) KPT was created to acquire, and its business is limited to holding, a limited equity interest in Kruger Products, which is accounted for as an investment on the equity basis. KPT currently holds a 12.3% interest in Kruger Products. For more information visit . About Kruger Products Inc. (Kruger Products) Kruger Products is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products serves the Canadian consumer market with such well-known brands as Cashmere®, Purex®, SpongeTowels®, Scotties®, White Swan® and Bonterra®. In the U.S., Kruger Products manufactures the White Cloud® brand, as well as many private label products. The Away-From-Home division manufactures and distributes high-quality, cost-effective product solutions to a wide range of commercial and public entities. Kruger Products has approximately 3,000 employees and operates ten FSC® COC-certified (FSC® C-104904) production facilities in North America. For more information visit . INFORMATION: François Paroyan General Counsel and Corporate Secretary KP Tissue Inc. 905-812-6936 INVESTORS: Doris Grbic Director, Investor Relations KP Tissue Inc. 437-882-2596 IR@ SOURCE KP Tissue Inc.
Cision Canada
09-06-2025
- Business
- Cision Canada
KRUGER PRODUCTS INAUGURATES NEW LDC PLANT IN SHERBROOKE Français
SHERBROOKE, QC, June 9, 2025 /CNW/ - Kruger Products Inc. today inaugurated its new LDC (light dry crepe) tissue plant in Sherbrooke, constructed on a site adjacent to its TAD plant. The construction of this new facility was part of a large-scale $377.5-million expansion project that included the construction of a double-wide tissue machine featuring LDC technology, as well as the installation of two new converting lines: a facial tissue line in the new plant and a bathroom tissue line in the TAD plant. The project created 205 direct jobs, increasing the number of new jobs at the Sherbrooke Operational Centre to 378 since 2020. Today, Kruger Products employs 429 people in Estrie and supports about 1,500 regional direct and indirect jobs. All told, this major project represents a historic investment of nearly $1 billion in the region since 2018 to create a major tissue product manufacturing hub in North America. This expansion project was supported by Investissement Québec, agent for the Government of Québec, who provided $165 million in loans. The inauguration ceremony was attended by Gene Kruger and Sarah Kruger, Co-Presidents of Kruger Inc.; Christine Fréchette, Minister of Economy, Innovation and Energy and Minister Responsible for Regional Economic Development; Geneviève Hébert, Member for Saint-François; Évelyne Beaudin, Mayor of Sherbrooke; Michel Manseau, Senior Vice President and General Manager, Consumer Business – Canada, Kruger Products; Patrice Bégin, Vice President, Manufacturing, Kruger Products; and Éric Blais, General Manager, Sherbrooke Operational Centre, Kruger Products. With a capacity of 60,000 metric tons, the new LDC machine nearly doubles the Sherbrooke Operational Centre's production capacity and increases overall production to more than 130,000 metric tonnes per year. The ultra-modern industrial complex located in Sherbrooke's Brompton borough is now one of North America's most advanced and best-performing. It manufactures such well-known brands as Cashmere UltraLuxe ®, Scotties ® Ultra Soft, and SpongeTowels Ultra Pro ®. Quotes "Paper producers need to renew and modernize to adapt to new market realities. Kruger understands this very well! Given the current geopolitical context, we need projects like this one to contribute to Québec's economic development and boost the production of goods made right here. I extend my warmest congratulations to the Kruger family and the entire team!" – Christine Fréchette, Minister of Economy, Innovation and Energy, and Minister Responsible for Regional Economic Development "Once again, our government is there to help businesses in Estrie with their major investment projects. Large-scale initiatives such as this one diversify our region's economy and provide quality jobs for local residents. I congratulate the Kruger team for seeing this project through on time." – Geneviève Hébert, Member for Saint-François "This second plant fulfills our vision to make Sherbrooke a major manufacturing hub in North America of premium-quality tissue products. The fact that two large-scale projects were completed in just six years is a clear indicator of outstanding success and a testament to stellar teamwork. I would like to extend special congratulations to the project team at our LDC plant and to everyone who was involved in building both facilities. I also applaud our employees in Sherbrooke, whose daily commitment is key to our success." – Michel Manseau, Senior Vice President and General Manager, Consumer Business – Canada, Kruger Products Significant economic benefits in Estrie The project, carried out over three years, required some 660,000 person-hours of work, generated significant economic benefits for the region, with direct spending estimated at $165 million, and helped to create about 1,000 direct and indirect jobs during the construction phase, which was completed on time and on budget in fall 2024. About Kruger Products Inc. (Kruger Products) Kruger Products is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use. Kruger Products serves the Canadian consumer market with such well-known brands as Cashmere ®, Purex ®, SpongeTowels ®, Scotties ®, White Swan ® and Bonterra™. In the U.S., Kruger Products manufactures the White Cloud® brand, as well as many private label products. Kruger Products has approximately 3,000 employees and operates ten FSC®-certified CoC plants (FSC® C-104904) in North America. For more information, visit About KP Tissue Inc. (KPT) KPT was created to acquire, and its business is limited to holding, a limited equity interest in Kruger Products, which is accounted for as an investment on the equity basis. KPT currently holds a 12.3% interest in Kruger Products. For more information, visit
