KP Tissue's Q1 2025 revenue was $546.1 million, compared to $479.4 million in Q1 2024, an increase of $66.7 million or 13.9%. The increase in revenue was primarily due to higher sales volume in the Consumer segment and favourable selling prices across both segments. Revenue was also favourably impacted by foreign exchange fluctuations on U.S. dollar sales.
Adjusted EBITDA was $75.8 million in Q1 2025 compared to $67.1 million in Q1 2024, an increase of $8.7 million or 12.9%. The increase was primarily due to higher sales volumes and selling prices along with lower manufacturing overhead costs as a result of overhead cost absorption, partially offset by higher pulp prices and freight costs as described above, and warehousing and SG&A expenses.
Net income was $15.4 million in Q1 2025 compared to $9.0 million in Q1 2024, an increase of $6.4 million. The increase was primarily due to a higher foreign exchange gain and higher Adjusted EBITDA, partially offset by higher depreciation expense and higher interest expense and other finance costs.
“We are pleased with our strong Q1 results, especially considering the uncertain and volatile economic environment,” stated KP Tissue’s Chief Executive Officer, Dino Bianco. “Adjusted EBITDA reached $75.8 million in the quarter on revenue that increased nearly 14% year-over-year. Revenue for the Consumer segment was driven by higher sales volume in Canada and in the U.S., and improved pricing. Our Away-from-Home business, which has been rebranded Kruger PRO, also generated higher sales volume than the same period last year, although profitability was unfavourably impacted by freight costs, warehousing costs and the purchase of external products. We expect that our newly deployed LDC paper machine in Sherbrooke will essentially meet all in-house paper requirements beginning in the Q2 2025. The LDC paper machine and new facial tissue converting line, part of the overall Sherbrooke Expansion Project, have exceeded start-up expectations, while TAD paper machine and converting output remains strong year-over-year.”
Outlook for Q2 2025
Assuming a similar tariff environment, KP Tissue expects Q2 2025 Adjusted EBITDA to be in the range of $70 million to $75 million.
KP Tissue Inc. was created to acquire, and its business is limited to holding an interest in Kruger Products Inc. It currently holds a 12.3% interest in Kruger Products Inc. Kruger Products Inc. is Canada’s leading tissue products supplier by overall dollar and volume market share.
