Kruger Products has recorded solid results driven by strong revenue in its Q2 results.
Revenue increased 9.3% to $509.8m in Q2 2024 compared to $466.3m in Q2 2023.
The company said the increase was primarily due to higher sales volume along with favourable sales mix in the Consumer segment and favourable selling prices across both segments.
Adjusted EBITDA1 was $65.3m for the quarter, up 18.6% compared to $55m in Q2 2023.
Net income decreased by $3.9m to $10.6m.
Dino Bianco, Chief Executive Officer of Kruger Products, said: “We delivered as per our expectations in the second quarter of 2024 with revenue-driven profitability generating more than $65m in Adjusted EBITDA.
“In the Consumer segment, we brought added innovation and capacity to the Canadian facial tissue market to build our leadership status with 42.8% share, while
maintaining our number one and number two positions in the bathroom tissue and paper towel categories, respectively.
“We also continued growing our AfH business on the strength of increased sales and Adjusted EBITDA year-over-year and sequentially.
“We are pleased with the strong momentum across all our business units, both in Canada and the US, despite a labour disruption at our Crabtree, Quebec-based facility that has since been resolved with a five-year collective bargaining agreement.”
“From a margin management standpoint, we recently announced a pricing increase in our Consumer segment to mitigate escalating pulp prices that are approaching peak levels.
“This pricing adjustment, along with other productivity initiatives will ensure we continue to drive profitable growth.”
