KP Tissue, the leading producer of tissue products in Canada, and growing in the U.S., announced fourth quarter and annual earnings, highlighted by a near 8% growth annually in the United States, compared with a year ago.
Total revenue reached $1.4 billion company-wide, an increase of 4.6%, year over year.
KP Tissue owns one-third of the market in bathroom tissue and facial tissue in Canada and more than 20% of the paper towel market there. Its brands include Cashmere, Scotties, Purex, White Swan, Sponge Towels and White Cloud.
The company also has a burgeoning private brand segment, especially in the U.S., where it is operated out of the company’s Through-Air-Drying facility in Memphis, Tenn. The company didn’t say how much it generated in private label sales but the segment did grow in fourth quarter, as all segments grew, and it does see it as an opportunity in one of the fastest-growing segments in paper.
“Our fourth-quarter adjusted EBITDA increased by a strong 87.5% to $46.0 million compared to a weak Q4 last year. We are very pleased with Fiscal 2019’s performance, particularly with the strong second half, reflecting volume growth and the benefit of previous pricing actions in all business segments and a favorable cost environment,” said Dino Bianco, COO of KP Tissue and Kruger Products.