KARAT PACKAGING Reports Decrease in Revenue of 5.3% Year-Over-Year for Q2 2023
August 24, 2023
🌥️Earnings Overview
For the fiscal year 2023 Q2 ending on August 9, KARAT PACKAGING ($NASDAQ:KRT) reported total revenue of USD 108.7 million, a 5.3% decrease compared to the same period in 2023. Meanwhile, net income for the period was USD 10.5 million, a 65.6% increase from the same quarter last year.
Analysis
GoodWhale conducted an analysis of KARAT PACKAGING‘s financials, and the results indicate that the company is strong in terms of assets and growth, and medium in dividend and profitability. Based on these results, KARAT PACKAGING falls into the category of ‘gorilla’ companies, which are those that have achieved stable and high revenue or earning growth due to their strong competitive advantage. Investors who are looking for companies with strong competitive advantages may be particularly interested in KARAT PACKAGING. Additionally, KARAT PACKAGING has a high health score of 7/10 with regard to its cashflows and debt, making it a safe bet that they can ride out any economic crisis without the risk of bankruptcy. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Karat Packaging. More…
| Total Revenues | Net Income | Net Margin |
| 407.2 | 30.14 | 7.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Karat Packaging. More…
| Operations | Investing | Financing |
| 68.27 | -34.81 | -18.71 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Karat Packaging. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 286.93 | 121.62 | 7.78 |
Key Ratios Snapshot
Some of the financial key ratios for Karat Packaging are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.4% | 25.4% | 10.0% |
| FCF Margin | ROE | ROA |
| 14.0% | 16.7% | 8.9% |
Peers
The company’s products are used by a wide range of industries, including food and beverage, pharmaceutical, and cosmetics. Karat Packaging Inc has a strong competitive position in the packaging industry, with a market share of about 20%. The company’s main competitors are Starflex PCL, Crown Holdings Inc, and Chuo Kagaku Co Ltd.
– Starflex PCL ($SET:SFLEX)
Starflex PCL is a Thailand-based company engaged in the manufacture and sale of flexible packaging products. The Company offers a range of products, including laminated film, extrusion coating laminate, metallized film, paper laminates, BOPP film and others. It serves customers in the food and beverage, electronics, pharmaceuticals and other industries. The Company operates manufacturing plants in Thailand, Vietnam and Laos.
– Crown Holdings Inc ($NYSE:CCK)
Crown Holdings Inc is a global packaging company that provides packaging solutions for a variety of industries, including food and beverage, consumer goods, and industrial. The company has a market cap of 8.66B as of 2022 and a Return on Equity of -4.77%. Crown Holdings Inc is a publicly traded company on the New York Stock Exchange (NYSE) under the ticker symbol CCK.
– Chuo Kagaku Co Ltd ($TSE:7895)
Chuo Kagaku Co Ltd is a Japanese company that manufactures and sells chemicals, plastics, and other products. It has a market cap of 6.85 billion as of 2022 and a return on equity of 2.95%. The company was founded in 1947 and is headquartered in Tokyo, Japan.
Summary
KARAT PACKAGING reported total revenue of USD 108.7 million for the second quarter ending June 30 2023, a decrease of 5.3% year over year. Net income for the period was USD 10.5 million, an increase of 65.6% from the same period in 2023. Despite a decrease in revenue, the increase in net income suggests that the company is managing its expenses well and improving its profitability.
As a result, investors are likely to view this as a positive sign and may be encouraged to invest in KARAT PACKAGING. Further analysis would be needed to determine the sustainability of these results and whether they can be maintained or improved in the coming quarters.
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