Orchids Paper Products Company reported net sales of $45.9 million in the 2Q 2018, up 19.3% compared to the year-ago period. Gross profit in the 2Q 2018 was $0.6 million, a decrease from $1.5 million in the 2Q 2017. Gross profit margins decreased from 3.9% in the second quarter of 2017 to 1.3% in the 2Q 2018, as the company said in the press release received by Lesprom Network.
Orchids had a 2Q 2018 operating loss of $5.3 million in 2018 compared to an operating loss of $2 million in the 2Q 2017. Net loss in the 2Q 2018 was $6.9 million and diluted loss per share was $0.65. Net loss and diluted loss per share in the 2Q 2017 were $2 million and $0.20, respectively.
Jeff Schoen, President and CEO, stated, "Orchids' total revenues in the 2Q were up 19% over the year-ago period driven by the ramp at the Barnwell facility. Total revenues were down 5% relative to the first quarter driven by lower converted product sales, somewhat offset by strong parent roll sales. Converted products revenues declined 7% sequentially as a result of competitive bids and a shortage in freight supply that pushed shipments into the second quarter. Parent rolls sales in the 2Q were strong with growth of 13% over the first quarter as we ramped parent roll production at the Barnwell facility."
Orchids Paper Products Company produces a full line of tissue products, including paper towels, bathroom tissue and paper napkins.
