NASDAQ$KRT

Karat Packaging Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported record quarterly revenue and net income more than doubled.

Karat Packaging Inc. reported a strong first quarter in 2022, with record quarterly net sales of $105.4 million, a 39.3% increase from the prior-year quarter, and net income more than doubled. Gross profit increased by 58.6% to $34.3 million, and gross margin improved to 32.5%.

  • Record quarterly net sales increased by 39.3% year-over-year to $105.4 million.
  • Gross profit increased by 58.6% year-over-year to $34.3 million.
  • Gross margin improved by 390 basis points to 32.5%.
  • Net income more than doubled compared to the prior-year quarter, reaching $7.9 million.

Headline financials

Total Revenue

$105M

Previous: $75.7M+39.3%
EPS (adj)

$0.36

Previous: $0.13+176.9%
Adjusted EBITDA Margin

12.3%

Previous: 9.0%+36.7%
Gross Margin

32.5%

Previous: 28.6%+13.6%
Net Income Margin

7.5%

Previous: 4.0%+87.5%
Capital Expenditures

-$824K

Previous: -$273K-201.8%
Free Cash Flow

$5.84M

Previous: $1.51M+287.7%
Net Income

$6.67M

Previous: $1.78M+274.6%
Operating Income

$9.49M

Previous: $3.77M+151.7%
Gross Profit

$34.3M

Previous: $21.6M+58.6%
Cash & Equivalents

$6.82M

Previous: $961K+609.7%
Total Assets

$240M

Previous: $177M+35.9%
Stock-Based Comp

$611K

No prior period

Revenue & EPS history

Karat Packaging · Revenue · Quarterly

$105M

Q1 2022+39.3%vs Q1 2021
Beat estimate in 3 of 8 quarters(38%)
ActualEstimate

Revenue by segment

Karat Packaging · $80.5M total across 3 segments · Q1 2022

  • Chains and distributors
    $59.1M+47.8%
  • Online
    $13.5M+18.4%
  • Retail
    $7.83M+32.1%

Forward guidance

The company provided guidance for the second quarter and full year of 2022.

Tailwinds

  • Net sales for the second quarter are expected to be between $116 million and $118 million, up from $94.5 million in the second quarter of 2021.
  • Net sales for the full year are projected to be between $445 million and $449 million, compared to $364.2 million in 2021.
  • Gross margin goal for the full year is 31% to 32% on average, including the expected impact from freight and duty capitalization for the remainder of 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.7%

Avg return

Earnings day

+1.2%

Avg return

5 days after

+0.8%

Avg return

30 days after

42%

10 / 24 earnings

Positive

+20.7%

Q4 2025

Best reaction

-18.6%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-7.5%-10.4%-6.3%
Q4 2025+20.7%+24.4%+33.5%
Q3 2025-6.1%-8.5%-8.5%
Q1 2025+10.9%+10.0%+14.2%
Q4 2024-2.1%+0.8%-14.7%
Q3 2024-0.1%+3.5%+5.3%
Q2 2024-14.6%-7.8%-13.2%
Q1 2024-9.0%-5.2%-7.7%
Q4 2023-11.8%-7.2%-5.7%
Q3 2023-18.6%-9.2%-5.5%
Q2 2023+3.8%+21.6%+0.8%
Q1 2023+3.6%+6.2%+12.5%
Q4 2022-1.6%-6.6%-6.2%
Q3 2022-2.8%-7.6%-5.8%
Q2 2022+1.2%+0.1%+1.2%
Q1 2022+11.6%+16.7%+10.0%
Q4 2021+13.3%+26.2%+24.5%
Q3 2020-10.6%-10.8%-9.7%
Q3 2021-7.5%-7.8%-7.6%
Q2 2020-3.7%-6.5%-6.1%
Q2 2021-2.6%-7.6%-6.2%
Q4 2020+6.1%+3.7%+6.2%
Q1 2020+6.1%+3.7%+6.2%
Q1 2021+3.5%+8.2%+8.2%
Q4 2019
Q3 2019
Q2 2019
Q1 2019
Q4 2018
Q2 2018
Q1 2018
Q4 2017

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