KP Tissue (TSE:KPT) Releases Quarterly Earnings Results

KP Tissue (TSE:KPT) announced its earnings results on Thursday. The company reported C$0.24 EPS for the quarter, 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 Stock Down 0.5%

Shares of KP Tissue stock opened at C$12.87 on Friday. The stock has a market capitalization of C$129.06 million, a price-to-earnings ratio of 14.30, a price-to-earnings-growth ratio of -0.88 and a beta of 0.53. KP Tissue has a twelve month low of C$9.12 and a twelve month high of C$13.78. The company has a 50-day simple moving average of C$13.05 and a two-hundred day simple moving average of C$11.78.

KP Tissue Dividend Announcement

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

Analysts Set New Price Targets

KPT has been the subject of a number of research analyst reports. Desjardins boosted their price objective on KP Tissue from C$12.00 to C$12.50 and gave the stock a “hold” rating in a report on Friday, May 15th. TD increased their target price 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, Based on data from MarketBeat.com, KP Tissue currently has a consensus rating of “Hold” and a consensus target price of C$12.12.

Insider Activity

In other KP Tissue news, Director David A. Spraley sold 3,668 shares of the stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of C$13.30, for a total transaction of C$48,784.40. Following the transaction, the director owned 15,712 shares in the company, valued at C$208,969.60. This represents a 18.93% decrease in their position. In the last quarter, insiders have sold 6,668 shares of company stock worth $87,644. Corporate insiders own 0.14% of the company’s stock.

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.