Orchids Paper Products Company reported results for the 4Q and year ended December 31, 2016. 4Q 2016 net sales decreased $4.2 million, or 10%, primarily due to heavy promotional activity by brand-competitors and other competitive pressures.
FY 2016 net sales decreased $4 million, or 2%.
Jeff Schoen, President and CEO, stated, "Despite intense competitive pressures, year-over-year adjusted EBITDA increased 2%, the adjusted EBITDA margin increased from 19.4% to 20.3%, and Cost of sales, exclusive of depreciation, decreased 4.4% while Sales declined only 2.3%. In other words, improved cash margins and cost cutting helped offset the impact of the decline in sales.”
Orchids Paper Products Company produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins.
