Tissue World Magazine
Alexandra Stuthridge, Technical Business Manager, BioProducts Institute (BPI)

KP Tissue has reported EBITDA of $31.7m compared to $29.3m a year earlier in its Q2 2013 results.

The Canadian tissue manufacturer released its results and those of Kruger Products (KPLP) reporting revenue of $246.8m compared to $231.3m in Q2 2012, an increase of 6.7% year on year.

Mario Gosselin, chief executive of KP Tissue and KPLP, said: ā€œOur results for the second quarter were very solid, and we are particularly pleased that our EBITDA reached $31.7m.

ā€œAs we expected, our Canadian branded businesses reported higher sales when compared to the first quarter of 2013 due to a shift in promotional activities.ā€

The company increased its market share in all consumer product categories and Gosselin said that market acceptance of its TAD products ā€œis as we have anticipatedā€.

The start-up phase of the companyā€™s TAD facility is progressing as planned.

He added: ā€œMargins have been somewhat impacted by rising commodity prices, fibre in particular, but these were not unforeseenā€¦ demand for our TAD products in the private label market in America is strong, and interest continues to build.ā€

However, he anticipated that higher commodity prices for pulp and energy will further impact the companyā€™s third quarter results.