KRT
Still growing, even with the headwinds
Karat Packaging came out of the second quarter looking pretty sturdy. Net sales hit a record $136.3 million, climbing 9.9% from $124.0 million a year ago, as the company’s online business kept humming and customer demand stayed healthy.
The good news, with a side of cost pressure
That’s the kind of top-line print investors like to see. But there’s always a catch, right? The company also noted higher product and import costs, which can nibble away at the benefits of stronger sales like a raccoon finding the snack drawer.
Why you should care
For investors, the key question isn’t just whether Karat can sell more cups, containers, and packaging stuff — it’s whether it can keep doing it profitably while costs stay annoying. Strong demand is a nice flex; protecting margins is the real test.
Big picture: Karat’s quarter suggests demand is still there, but the next leg of the story is all about how well management handles inflation in its cost stack.