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KP NEWS RELEASE For immediate release KP Tissue Releases Second Quarter 2021 Financial Results Q2 results reflect strong prior year comps and industry headwinds Mississauga ( ON ) , August 12 , 2021 - KP Tissue Inc. ( KPT ) ( TSX : KPT ) reports the Q2 2021 financial and operational results of KPT and Kruger Products L.P. ( KPLP ) . Kruger Products is Canada's leading manufacturer of quality tissue products for the Consumer market ( Cashmere , Purex , Sponge Towels , Scotties , and White Swan ) and the Away - From - Home ( AFH ) market and continues to grow in the U.S. Consumer tissue business with the White Cloud® brand and premium private label products . KPT currently holds a 14.5 % interest in KPLP . KPLP Q2 2021 Business and Financial Highlights • • • Revenue decreased by $ 47.5 million or 12.3 % to $ 339.3 million in Q2 2021 compared to $ 386.8 million in Q2 2020 . Adjusted EBITDA was $ 37.3 million in Q2 2021 compared to $ 64.4 million in Q2 2020 , a decrease of 42.1 % , and similar sequentially to the $ 37.5 million in Q1 2021 . TAD Sherbrooke continues to run above the expected start - up curve . Completed financing for the Sherbrooke Expansion Project . • Declared a quarterly dividend of $ 0.18 per share to be paid on October 15 , 2021 . " Given continued soft demand resulting from COVID - 19 related de - stocking by retailers and consumers , headwinds from high pulp prices and a gradual market recovery in the Away - From - Home segment , results for the quarter were largely in line with our expectations . Consequently , revenues were under pressure and Adjusted EBITDA for the quarter was down significantly compared to last year's record level , but was stable when compared to the first quarter of this year , " stated KP Tissue's Chief Executive Officer , Dino Bianco . " Our share position remains strong in all tissue product categories and the launch of Sponge Towels UltraPro ™ continues to exceed our expectations and led to important share gains in the category . TAD Sherbrooke's start - up curve remains ahead of schedule and provides the paper tissue capacity required to meet our long - term growth plans . " After several quarters of depressed end - user demand in Away - From - Home , volume has gradually picked - up with the easing of COVID - 19 restrictions , particularly in the U.S. This combined with the benefits of production efficiencies and less paper outsourcing , has resulted in an improved AFH Adjusted EBITDA position for the quarter , providing a near - term path to a turnaround . " With the situation gradually improving month - after - month in Consumer Tissue , we anticipate a return to more normal buying patterns and demand from retailers and consumers in the second half of the year . We have also worked hard to position AFH for a market recovery and expect improving sales as end - markets recover . High pulp prices and cost inflation will remain prevalent for the remainder of the year . We expect that , despite these factors , the pricing actions announced and a more favourable sales market should translate into a stronger performance in the second half of 2021 , " concluded Mr. Bianco . Outlook We are beginning to see the risks and uncertainties associated with COVID - 19 subside and expect to see activities and behaviour start to return to more pre - COVID levels in the second half of 2021 , in both the Consumer and Away - From - Home segments . Despite higher pulp prices , we expect Q3 2021 Adjusted EBITDA to be in a range which is higher than Q2 2021 and lower than Q3 2020 . KPLP Q2 2021 Financial Results Revenue was $ 339.3 million in Q2 2021 compared to $ 386.8 million in Q2 2020 , a decrease of $ 47.5 million or 12.3 % . The decrease in revenue was primarily due to a significant sales volume decrease in the Consumer Segment resulting primarily from the comparison to high COVID - 19 buying activity in the year ago quarter , while sales volume in the AFH segment was slightly lower compared to Q2 2020 as COVID - 19 impacted both quarters . Revenue was also unfavourably impacted by foreign exchange fluctuations on U.S. dollar sales .