KP Tissue (TSE:KPT) Posts Quarterly Earnings Results

KP Tissue (TSE:KPT) announced its quarterly earnings data on Thursday. The company reported C$0.24 earnings per share (EPS) for the quarter, FiscalAI reports.

Here are the key takeaways from KP Tissue’s conference call:

• Adjusted EBITDA rose 25% year over year to CAD 90.6 million on revenue of CAD 550.9 million, lifting the margin to 16.4% from 13.5%. Gains came from higher U.S. volumes, improved Memphis mill performance, and lower pulp costs.
• U.S. revenue increased 9.5%, with consumer and Away-From-Home volume growth driving consolidated sales, while the new Memphis converting line is ramping ahead of plan and adding premium tissue capacity.
• Canadian consumer revenue declined 2.6% and the company lost bathroom tissue and paper towel share as inflation-sensitive consumers traded down to private label. Management expects its pricing, promotional, and brand initiatives to support share recovery in the second half.
• Away-From-Home revenue grew 7.4%, but segment EBITDA fell to CAD 8.5 million from CAD 9.0 million because of higher freight and transportation costs. The company announced price increases of approximately 3%–5%, effective September 1, to offset these pressures.
• Management expects third-quarter Adjusted EBITDA to remain in the range of Q2 results and says tariff exposure should be limited, with less than 1% of Canadian sales potentially affected. The proposed Western U.S. TAD facility remains under evaluation, with site selection and investment timing delayed by permitting, infrastructure, financing, and economic uncertainty.

KP Tissue Price Performance

TSE KPT traded up C$0.08 during trading hours on Thursday, hitting C$12.85. The company had a trading volume of 17,581 shares, compared to its average volume of 15,314. The firm’s 50 day moving average is C$13.05 and its 200 day moving average is C$11.76. KP Tissue has a fifty-two week low of C$9.12 and a fifty-two week high of C$13.78. The company has a market capitalization of C$128.86 million, a price-to-earnings ratio of 14.28, a P/E/G ratio of -0.88 and a beta of 0.53.

KP Tissue Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, July 15th. Investors of record on Wednesday, July 15th were given a dividend of $0.21 per share. This represents a $0.84 dividend on an annualized basis and a yield of 6.5%. The ex-dividend date of this dividend was Tuesday, June 30th. KP Tissue’s dividend payout ratio is 80.00%.

Insider Activity at KP Tissue

In other news, Director David A. Spraley sold 3,668 shares of the company’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of C$13.30, for a total value of C$48,784.40. Following the completion of the sale, the director owned 15,712 shares of the company’s stock, valued at C$208,969.60. This represents a 18.93% decrease in their ownership of the stock. Insiders sold a total of 6,668 shares of company stock worth $87,644 in the last 90 days. Insiders own 0.14% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on KPT shares. Desjardins lifted their target price on KP Tissue from C$12.00 to C$12.50 and gave the company a “hold” rating in a report on Friday, May 15th. TD upped their price target on KP Tissue from C$12.00 to C$14.00 and gave the stock a “hold” rating in a research note on Tuesday, July 14th. Three analysts have rated the stock with a Hold rating, According to data from MarketBeat, the company presently has an average rating of “Hold” and an average price target of C$12.12.

About KP Tissue

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% interest in Kruger Products.