Karat Packaging Inc (NAS:KRT)

Q1 2025 Karat Packaging Inc Earnings Call Transcript

May 8, 2025 / 09:00 PM GMT

Release Date Price: $27.34 (+1.79%)

Transcript 10-Q8-K

Key Points

Positve

Karat Packaging Inc (KRT) reported an 8.4% increase in net sales year over year, reaching $103.6 million for Q1 2025.
The company achieved a 10.9% growth in sales volume, indicating strong demand for its products.
Karat Packaging Inc (KRT) successfully reduced its reliance on Chinese imports, with sourcing from China down to 15% and expected to be under 10% by the end of Q2 2025.
The company is expanding its domestic manufacturing capabilities without significant incremental capital expenditure, allowing for quick adaptation to market changes.
Online sales experienced a nearly 20% increase, highlighting the company's focus on expanding high-margin categories.

Negative

Operating expenses increased by 11.6% to $32.9 million, driven by higher shipping and transportation costs and increased rent expenses.
Adjusted EBITDA for Q1 2025 decreased to $11.9 million from $13.5 million in the prior year quarter, with the adjusted EBITDA margin dropping to 11.5% from 14.2%.
The company anticipates further price increases due to higher costs of goods, which may impact customer demand.
Gross margin is expected to compress in the second half of the year due to anticipated tariffs and duties.
Freight costs are fluctuating, with potential increases in the second quarter, adding uncertainty to cost management.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

KRT.OQ - Karat Packaging Inc
Q1 2025 Karat Packaging Inc Earnings Call
May 08, 2025 / 09:00PM GMT

=====================
Presentation
--------------------------------------------------------------------------------
Unidentified_1 [1]
--------------------------------------------------------------------------------
Good afternoon and welcome to Carrot Packaging's 2025 1st quarter conference call.

All participants will be in a listen-only mode for the duration of the call. And should you need any assistance today, please signal a conference specialist by pressing the star key followed by 0 on your telephone keypad.

After today's presentation, there will be an opportunity to ask questions.

To ask a question, you may press star, then 1 on your telephone keypad. And to withdraw a question, please press star, then 2.

Please also note that this event is being recorded today.

I would now like to turn the conference over to Roger Podell with Podell Wilkinson. Please go ahead, sir.

------------------

Already have an account? Log in

Get the full story

Subscribe Now

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

7-Day Free Trial · Cancel Anytime

Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Calculators Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Instant Alerts Mobile App Newsletters Signup 中文

Education

Financial Glossary Tutorials FAQ Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.