In This Story
Karat Packaging Inc. (KRT-5.22%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing reports net sales of $422.6 million, an increase of 4.2% compared to the previous year, driven by volume growth and product mix changes. The company also noted a 7.4% increase in sales volume.
Cost of goods sold for the year was $258.3 million, up from $252.6 million in the prior year, with an increase in freight and duty costs contributing to this rise.
Karat Packaging reported a gross profit of $164.3 million, reflecting a gross margin of 38.9%, an improvement from 37.7% in the previous year.
Operating expenses increased to $126.6 million from $111.0 million, primarily due to higher selling expenses and general and administrative costs.
Net income for the year was $30.8 million, a decrease from $33.2 million in the previous year, attributed to higher operating expenses.
The company generated net cash from operating activities of $48.0 million, a decrease from $53.4 million in the prior year.
Adjusted EBITDA, a non-GAAP measure, was $55.3 million, down 6.5% from the previous year, with an Adjusted EBITDA margin of 13.1%.
Karat Packaging had a working capital of $114.6 million as of December 31, 2024, an increase from $110.5 million as of December 31, 2023.
The company paid out $31.0 million in dividends during the year and announced a quarterly cash dividend of $0.45 per share payable in February 2025.
Significant strategic initiatives included a shift towards an asset-light model, increasing imports, and expanding the vendor network, which contributed to margin expansion.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Karat Packaging Inc. annual 10-K report dated March 14, 2025. To report an error, please email earnings@qz.com.