KP Tissue's 3Q 2017 revenue was $336.3 million, compared to $312.8 million in 3Q 2016, an increase of $23.5 million or 7.5%. The increase in revenue was primarily due to higher sales volume, partially offset by the unfavourable impact of foreign exchange on U.S. dollar sales, as the company said in the press release received by Lesprom Network.
Adjusted EBITDA in 3Q 2017 was $39.4 million, compared to $45.6 million in 3Q 2016, lower by $6.2 million or 13.6%, primarily due to significantly higher fibre costs, increased freight costs, and start-up costs, partially offset by increased sales volume and lower SG&A costs.
Net income in 3Q 2017 was $16.5 million, compared to $21.6 million in 3Q 2016, primarily due to lower Adjusted EBITDA of $6.2 million and higher depreciation expense of $2.3 million. These items were partially offset by a change in foreign exchange gain of $2 million.
"3Q results were in-line with our expectations, however they reflect the continued negative impact of rising pulp prices which have reached record levels, and also higher freight costs driven by the recent hurricanes in the southern U.S.”, said Mario Gosselin, CEO of KP Tissue and KPLP.
KP Tissue Inc. was created to acquire, and its business is limited to holding, a limited partnership interest in Kruger Products L.P., which is accounted for as an investment on the equity basis.
Kruger Products L.P. is Canada's leading manufacturer of quality tissue products for household, industrial and commercial use.
