NASDAQ$KRT
Karat Packaging Inc · Q1 2023 earnings
Q1 2023 earnings · · Investor relations
Briefing
Achieved record gross margin expansion and executed business strategy effectively.
Karat Packaging reported a decrease in net sales by 9.1% to $95.8 million, but gross profit increased by 12.2% to $38.1 million. Net income also increased by 15.6% to $9.2 million, with a record gross margin of 39.8%.
- Net sales decreased by 9.1% year-over-year to $95.8 million.
- Gross profit increased by 12.2% year-over-year to $38.1 million.
- Gross margin improved to a record 39.8%, up 730 basis points from the prior year.
- Net income increased by 15.6% year-over-year to $9.2 million, resulting in a net income margin of 9.6%.
Headline financials
Revenue & EPS history
Karat Packaging · Revenue · Quarterly
$95.8M
Revenue by segment
Karat Packaging · $74.4M total across 3 segments · Q1 2023
- Chains and distributors$54.6M-7.6%73.4%
- Online$13.7M+0.8%18.3%
- Retail$6.13M-21.7%8.2%
Forward guidance
Karat Packaging anticipates net sales for the full year 2023 to increase by high single digits. They project a gross margin between 32% and 33% for the full year. The company also aims for eco-friendly product sales to constitute 35% of total sales for the year. Net sales for the second quarter of 2023 are expected to be 5% lower compared to the prior year period.
Tailwinds
- Net sales for the 2023 full year expected to increase by high single digits.
- Gross margin goal for the 2023 full year: 32 percent to 33 percent.
- Eco-friendly product sales goal for the 2023 full year: 35 percent of total sales.
Headwinds
- Net sales for the 2023 second quarter expected to be 5 percent lower, primarily due to price reductions, compared with the prior year period.
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 2023
-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
| Quarter | Report date | Reaction (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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