{"id":7000,"date":"2025-05-09T08:54:46","date_gmt":"2025-05-09T12:54:46","guid":{"rendered":"https:\/\/www.packagingindustrynews.com\/?p=7000"},"modified":"2025-05-09T08:54:46","modified_gmt":"2025-05-09T12:54:46","slug":"karat-packaging-reports-5-2-net-income-increase-in-q1-2025","status":"publish","type":"post","link":"https:\/\/www.packagingindustrynews.com\/?p=7000","title":{"rendered":"Karat Packaging reports 5.2% net income increase in Q1 2025"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure class=\"article-image__container\">\n                                    <picture><source media=\"(min-width: 990px)\" srcset=\"https:\/\/www.packaging-gateway.com\/wp-content\/uploads\/sites\/16\/2025\/05\/Pack-5-shutterstock_2367084417-770x433.jpg\"\/><source media=\"(min-width: 430px)\" srcset=\"https:\/\/www.packaging-gateway.com\/wp-content\/uploads\/sites\/16\/2025\/05\/Pack-5-shutterstock_2367084417-940x528.jpg\"\/>\n                                    <\/picture><figcaption class=\"c-featured-image__description\">Karat\u2019s gross margin for Q2 is expected to be in line with Q1. Credit: JulieK2\/Shutterstock.<\/figcaption><\/figure>\n<\/p><\/div>\n<p class=\"drop-cap\">US-based beverage and foodservice packaging company Karat Packaging has reported a net income of $6.8m for the first quarter (Q1) of 2025, which is up 5.2% from $6.5m in the same period last year.<\/p>\n<p>            <!-- sponsored-whitepaper sponsored hidden sponsored-with-form --><\/p>\n<p>Its net income margin in the latest quarter was 6.6%, compared to 6.8% in the same period last year.<\/p>\n<p>For the first quarter ended 31 March\u00a02025, the company posted net sales of $103.6m, up 8.4% from $95.6m in the prior year\u2019s quarter.<\/p>\n<p>In the latest quarter, the company reported a gross profit of $40.8m, which also rose by 8.4%, from $37.6m last year.<\/p>\n<p>Its gross margin was 39.3% in Q1 2025, consistent with the prior-year quarter.<\/p>\n<p>In Q1 2025, the company\u2019s adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) were $11.9m versus $13.5m compared to last year\u2019s quarter. Karat Packaging posted an adjusted EBITDA margin of 11.5% versus 14.2%\u00a0in the prior-year quarter.<\/p>\n<p>Karat Packaging says that its net sales for this year\u2019s second quarter are expected to increase by high single-digits to low double-digits compared to the prior-year quarter.<\/p>\n<p>The company\u2019s gross margin for the second quarter is expected to be in line with the first quarter.<\/p>\n<p>Karat Packaging CEO Alan Yu said: \u201cWe delivered another strong quarter, with sales volume up 10.9% and net sales up 8.4% and we believe we are well-positioned to navigate the supply chain challenges and the uncertain trade environment.<\/p>\n<p>\u201cOur effective and nimble global strategic sourcing capabilities enabled us to act early, reducing reliance on China from approximately 20% at the end of 2024 to 15% in March 2025, as we secured inventory from alternative sources with significantly more favourable trade terms under the current tariff structure.<\/p>\n<p>\u201cMoreover, due to the recently imposed extreme tariff, we have temporarily suspended imports from most vendors in China starting mid-April.\u201d<\/p>\n<p>            <!-- sponsored-whitepaper sponsored hidden sponsored-with-form --><\/p>\n<footer class=\"article-footer\">\n                                <!-- article-actions start --><\/p>\n<p><!-- .gdm-article-actions -->                                <!-- article-actions end --><br \/>\n                            <\/footer>\n<\/p><\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.packaging-gateway.com\/news\/karat-packaging-q1-2025-filings\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Karat\u2019s gross margin for Q2 is expected to be in line with Q1. Credit: JulieK2\/Shutterstock. US-based beverage and foodservice packaging company Karat Packaging has reported a net income of $6.8m for the first quarter (Q1) of 2025, which is up 5.2% from $6.5m in the same period last year. Its net income margin in the [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":7001,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[165],"tags":[501],"class_list":["post-7000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-packaging-news","tag-packaging-containers-and-components"],"_links":{"self":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/posts\/7000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7000"}],"version-history":[{"count":0,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/posts\/7000\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=\/wp\/v2\/media\/7001"}],"wp:attachment":[{"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.packagingindustrynews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}