KP Tissue (TSE:KPT) Issues Quarterly Earnings Results

KP Tissue (TSE:KPT) posted its earnings results on Thursday. The company reported C$0.24 earnings per share 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 Trading Up 1.3%

Shares of KPT opened at C$12.93 on Friday. The stock has a market capitalization of C$129.66 million, a price-to-earnings ratio of 14.37, a PEG ratio of -0.88 and a beta of 0.53. KP Tissue has a 12 month low of C$9.12 and a 12 month high of C$13.78. The firm has a fifty day simple moving average of C$13.06 and a 200 day simple moving average of C$11.78.

KP Tissue Dividend Announcement

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

Insider Buying and Selling

In other news, Director David A. Spraley sold 3,668 shares of the stock in a transaction dated 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 completion of the transaction, the director directly owned 15,712 shares in the company, valued at C$208,969.60. This represents a 18.93% decrease in their position. Over the last quarter, insiders have sold 6,668 shares of company stock worth $87,644. Insiders own 0.14% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on KPT. Desjardins lifted their price objective 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 shares of KP Tissue from C$12.00 to C$14.00 and gave the company a “hold” rating in a report on Tuesday, July 14th. Three research analysts have rated the stock with a Hold rating, According to data from MarketBeat.com, KP Tissue currently has an average rating of “Hold” and a consensus 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.