Karat Packaging Reports Strong 2024 Financial Results

Karat Packaging, Inc. ( (KRT) ) has released its Q4 earnings. Here is a breakdown of the information Karat Packaging, Inc. presented to its investors.

Karat Packaging Inc. is a specialty distributor and manufacturer of disposable foodservice products, focusing on environmentally friendly options, primarily serving the foodservice industry in the United States. The company has reported strong financial results for the fourth quarter and full year 2024, with significant growth in net sales and gross profit. In the fourth quarter, Karat Packaging saw a 6.3% increase in net sales to $101.6 million and a 16.8% rise in gross profit to $39.8 million, resulting in a gross margin expansion to 39.2%. The company’s net income also grew by 40.3% to $5.9 million. For the full year, net sales increased by 4.2% to $422.6 million, driven by volume growth and a favorable product mix. The company has successfully diversified its sourcing to reduce dependence on China, focusing on countries with favorable trade conditions like Taiwan. Looking ahead, Karat Packaging expects continued growth in 2025, with anticipated increases in net sales and gross margins, supported by its strategic supply chain adjustments and expansion of eco-friendly product lines.