Karat Packaging Inc. (NASDAQ:KRT) Q3 2022 Earnings Conference Call November 10, 2022 5:00 PM ET
Company Participants
Roger Pondel - Investor Relations
Alan Yu - Chief Executive Officer
Jian Guo - Chief Financial Officer
Conference Call Participants
Jake Bartlett - Truist Securities
Michael Hoffman - Stifel
Ryan Merkel - William Blair
Operator
Good day and welcome to the Karat Packaging Inc. Third Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. After today's presentation there will be an opportunity to ask questions. [Operator Instructions]. Please note, this event is being recorded.
I would now like to turn the call over to Roger Pondel, Investor Relations for Karat Packaging. Please go ahead.
Roger Pondel
Good afternoon, everyone and welcome to Karat Packaging's 2022 third quarter earnings call. I'm Roger Pondel with PondelWilkinson, Karat Packaging's Investor Relations firm. It will be my pleasure momentarily to introduce the company's Chief Executive Officer, Alan Yu and its Chief Financial Officer, Jian Guo.
Before I turn the call over to Alan, I want to remind our listeners that today's call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Such forward-looking statements are subject to numerous conditions, many of which are beyond the company's control, including those set forth in the Risk Factors section of the Karat Packaging's most recently Form 10-K as filed with the Securities and Exchange Commission, copies of which are available on the SEC's website at www.sec.gov, along with other company filings made with the SEC from time to time.
Actual results could differ materially from these forward-looking statements, and Karat Packaging undertakes no obligation to update any forward-looking statements, except as required by law.
Please also note that during today's call, we will be discussing adjusted EBITDA, adjusted EBITDA margin and adjusted diluted earnings per share, which are non-GAAP financial measures as defined by SEC Regulation G. A reconciliation of the most directly comparable GAAP measures to the non-GAAP financial measures is included in today's press release, which is now posted on the company's website.
And with that, it is my pleasure to turn the call over to CEO, Alan Yu. Alan?
Alan Yu
Thank you, Roger. Good afternoon, everyone. Our third quarter 2022 net sales increased 7% from the prior year period, which was particularly strong quarter from post COVID reopenings.
Result for the most recent quarter were impacted by customers destocking of certain inventories. Due to supply chain recovery nonetheless, we continue to see solid long term demand, particularly for our environmentally friendly products which grew 27% over the comparable prior year period.