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KP Tissue Inc T.KPT

Alternate Symbol(s):  KPTSF

KP Tissue Inc. is a Canada-based company, which was created to acquire, and its business is limited to holding, an equity interest in Kruger Products Inc. (Kruger Products). Kruger Products produces, distributes, markets and sells a wide range of disposable tissue products, including bathroom tissue, facial tissue, paper towels and napkins, for both the Consumer and the Away-From-Home (AFH) markets. The Company operates through two segments: Consumer and AFH. The Consumer segment consists of brands such as Cashmere, Purex, Scotties, SpongeTowels, and Bonterra in Canada and White Cloud in the United States. The AFH segment consists of brands such as Esteem, White Swan, Embassy, and Chalet. The AFH segment consists primarily of the supply of bathroom tissue, facial tissue, paper towels and napkins to commercial users in a variety of industries such as food services, property management, healthcare, manufacturing, education, and lodging.


TSX:KPT - Post by User

Bullboard Posts
Post by bellerophonon Mar 08, 2018 9:12am
381 Views
Post# 27681758

RBC Capital Markets, "First Impression" of KPT results

RBC Capital Markets, "First Impression" of KPT results
RBC Capital Markets, on March 8, 2018, says:
 
 
 
"KP reported Q417 adjusted EBITDA of $33.7M, below our forecast of
$41MM and consensus of $39MM. Overall revenues came in below our
expectations while the consolidated EBITDA margin of 9.9% was -140bps
lower vs. the 11.3% reflected in our forecasts (and -270bps vs. 12.6% y/y).
On a segmented basis, the core Consumer segment EBITDA margin came
in lower than anticipated (11.6% vs. RBCe at 13.0%), while the smaller AfH
segment also had EBITDA margins below our expectations (2.3% vs RBCe
at 4.0%). Results were negatively impacted by higher pulp and freight costs
as well as lower volumes from Canadian customers due to the recent price
increase."
 
 
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