Canada's KP Tissue Q3 revenue rises on higher sales volumes
Overview
Canada tissue maker's Q3 revenue rose 5.1% yr/yr on higher sales volumes and pricing
Adjusted EBITDA for Q3 rose 9.1% yr/yr
Q3 net income more than doubled from a year ago
Outlook
Company expects Q4 2026 Adjusted EBITDA to be slightly below Q3, but above Q4 2025
Company expects escalating input costs and inflationary pressure in coming quarters
Company anticipates delay in new TAD facility, not commencing operations in 2028
Result Drivers
CONSUMER SEGMENT GROWTH - Higher sales volumes in the Consumer segment and favourable selling prices in the U.S. Consumer business drove revenue gains
COST PRESSURES - Increased manufacturing overhead, higher freight and warehousing costs, and foreign exchange impacts raised costs, partially offset by lower pulp costs
BRAND INVESTMENT - Continued investment in brands contributed to sales growth in both Canada and the U.S.
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | C$589.66 mln | C$574.90 mln (2 Analysts) |
Q3 Net Income | C$27.71 mln | ||
Q3 Adjusted EBITDA | C$93.50 mln | ||
Q3 Operating Income | C$59.81 mln | ||
Q3 Pretax Profit | C$41.81 mln |
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)