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Revenue: $546.1 million, a 13.9% increase year over year.
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Adjusted EBITDA: $75.8 million, a 13% increase year over year.
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Net Income: $15.4 million, up from $9 million in Q1 2024.
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Consumer Business Revenue: $465.2 million, a 15.1% increase year over year.
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Away From Home Segment Revenue: $80.9 million, a 7.7% increase year over year.
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Consumer Adjusted EBITDA Margin: 16.3%, up from 15.5% in Q1 2024.
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Away From Home Adjusted EBITDA: $2.8 million, down from $7.8 million in Q1 2024.
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Cash Position: $141.8 million, an increase of $22.3 million from Q4 2024.
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Long-term Debt: $1.186 million, up $6.2 million sequentially.
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Net Debt to EBITDA Ratio: Improved to 4.0 times from 4.2 times in Q4 2024.
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Capital Expenditures: $17.5 million in Q1 2025.
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Canadian Revenue Growth: 7.6% year over year.
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US Revenue Growth: 21.7% year over year.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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KP Tissue Inc (KPTSF) reported a strong adjusted EBITDA of $75.8 million for Q1 2025, reflecting a nearly 13% year-over-year growth.
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Revenue increased by 13.9% year-over-year to $546.1 million, driven by higher sales volume and favorable selling prices.
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The newly deployed LDC paper machine in Sherbrooke exceeded startup expectations and is expected to meet all in-house paper requirements by Q2 2025.
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The company maintained a stable market share in the bathroom tissue and paper towel categories, with improvements in facial tissue market share.
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KP Tissue Inc (KPTSF) achieved a 26% reduction in GHG emissions and a 35% decrease in water consumption as part of its sustainability efforts.
Negative Points
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Profitability in the away from home segment decreased year-over-year due to external purchase paper and higher fiber prices.
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Higher pulp prices and greater freight costs negatively impacted the company's profitability.
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The company faces potential risks from tariffs and trade disruptions, which could affect financial performance.
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CapEx increased by $15 million due to carryover on the Sherbrooke expansion project, impacting cash flow.
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The economic uncertainty and volatility delayed the announcement of potential new growth projects, such as the 3T expansion.
Q & A Highlights
Q: Do you have any updates on future growth and the timing and location of potential 3T? A: Dino Bianco, CEO: We are continuing our analysis on this, and while we hoped to announce something in the first half of the year, due to economic uncertainty, it will likely be in the second half. We are actively working on this, considering market tightness, especially in the TAD area, and are evaluating a couple of locations.