Canada’s Kruger Products has targeted future growth in the facial tissue sector as it highlights “record sales” in its Q4 2023 and full year 2023 results.
In the fourth quarter, revenue increased year-on-year by 5.3% to $482.3m, while adjusted EBITDA increased 37.9% to $61.2m. Net income increased by $0.5m to $16.5m.
The company’s facial tissue line at its Sherbrooke Expansion Project started up in February 2024, and the business has also announced a 25% increase in facial production at its Gatineau, Quebec-based plant on 4 March 2024, with a $14.5m investment.
For the full year 2023, Kruger Products reported revenue up 11.4% year-on-year to $1,873.0m in Fiscal 2023.
Adjusted EBITDA1 was $238.6m in Fiscal 2023, a year-on-year increase of 105.7%.
Dino Bianco, Chief Executive of KP Tissue – which holds a 12.9% interest in Kruger Products – said: “Our financial results in fiscal 2023 are highlighted by record sales of $1.9bn and record Adjusted EBITDA of $238.6m, driven by many positive factors.
“Overall, our business benefited from robust volume, positive margin management with continued volatile costs, and strong operational efficiency across our network.”
He added that in the company’s Consumer segment, the business gained market share within the facial tissue and paper towel categories, while improving its share trend on bathroom tissue.
“We also stepped up to support and supply our Scotties facial tissue to customers and
consumers given the exit of Kleenex from the Canadian grocery market,” he said.
“Our AfH business continued to deliver sustainable results with another strong Adjusted EBITDA quarter and year.”
“In the fourth quarter, our underlying results remained solid with Adjusted EBITDA growing 37.9% year-over-year to $61.2m, despite strategically increasing investments in marketing and maintenance to enable us to enter 2024 in a stronger competitive position.
“Looking ahead, we plan to manage our margins amid rising costs, continue to invest in our brands, grow our facial tissue position, and implement a successful start-up of our Sherbrooke expansion.”
