In This Article:
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Revenue: $539.6 million in Q4 2024, an increase of 11.9% year-over-year.
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Adjusted EBITDA: $66.8 million in Q4 2024, up 9.2% year-over-year.
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Net Loss: $13.7 million in Q4 2024, compared to a net income of $16.5 million in Q4 2023.
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Consumer Business Revenue: $452.7 million in Q4 2024, a 12.9% increase year-over-year.
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Away-From-Home Segment Revenue: $86.9 million in Q4 2024, a 6.8% increase year-over-year.
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Canadian Revenue Growth: 6% year-over-year in Q4 2024.
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US Revenue Growth: 19.7% year-over-year in Q4 2024.
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Net Debt: $1.1 billion at the end of Q4 2024.
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Cash Position: $119.5 million at the end of Q4 2024.
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Capital Expenditures: $48.1 million in Q4 2024; $185.5 million for fiscal year 2024.
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Full Year Revenue Growth: 9.4% for fiscal 2024.
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Full Year Adjusted EBITDA Growth: 11% for fiscal 2024.
Release Date: March 05, 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 record revenue of over $2 billion for fiscal 2024, with strong adjusted EBITDA in all four quarters.
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The company achieved double-digit revenue growth year-over-year in Q4 2024, driven by higher sales volume in the US and favorable selling prices in Canada.
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Adjusted EBITDA improved by 9.2% year-over-year to $66.8 million in Q4 2024, supported by higher sales volume and increased selling prices.
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The successful start-up of new production assets, including a paper machine and facial tissue line at Sherbrooke, exceeded production targets.
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KP Tissue Inc (KPTSF) continued to invest in its 'Made in Canada' positioning, leveraging consumer patriotism and achieving marketing excellence with several industry awards.
Negative Points
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The company reported a net loss of $13.7 million in Q4 2024, compared to a net income of $16.5 million in Q4 2023, due to higher foreign exchange losses and increased depreciation and interest expenses.
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Higher pulp prices and additional outsourcing activities partially offset the gains in adjusted EBITDA.
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The Away-From-Home segment experienced a decrease in sales volumes year-over-year and sequentially in Q4 2024, impacting order fulfillment.
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The company faces potential tariff exposure, with approximately one-third of its revenue at risk due to finished goods tariffs from Canada to the US.
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KP Tissue Inc (KPTSF) is cautious about the evolving North American trade environment, which could impact future business operations and delay major projects like the new TAD paper machine.
Q & A Highlights
Q: Can you provide context on KP Tissue's tariff exposure and how much of your 2024 sales were from Canada to the US? A: About one-third of our revenue, approximately CAD600 million to CAD700 million, is exposed to tariffs, primarily on finished goods going from Canada to the US. We also face exposure from tariffs on pulp, particularly NBSK. Our mitigation strategies include moving volume into the US, passing tariffs as surcharges to customers, and considering additional assets or M&A in the US.