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KP NEWS RELEASE For immediate release KP Tissue Releases Third Quarter 2021 Financial Results Revenue recovery while managing inflationary pressures Mississauga ( ON ) , November 12 , 2021 - KP Tissue Inc. ( KPT ) ( TSX : KPT ) reports the Q3 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 Q3 2021 Business and Financial Highlights • • • Revenue increased by $ 22.3 million or 6.0 % to $ 391.4 million in Q3 2021 compared to $ 369.1 million in Q3 2020 . Adjusted EBITDA was $ 40.3 million in Q3 2021 compared to $ 46.2 million in Q3 2020 , a decrease of 12.8 % , and improved sequentially from $ 37.3 million in Q2 2021 . TAD Sherbrooke continues to run above the expected start - up curve . Declared a quarterly dividend of $ 0.18 per share to be paid on January 17 , 2022 " Our solid revenue growth of 6 % for the third quarter reflects pricing actions in our Canadian Consumer segment , combined with slightly higher volume and gradually improving commercial end - markets , along with the execution of our recovery plan in the Away - From - Home business . High inflationary costs and near - record pulp prices negatively impacted our Adjusted EBITDA compared to the same quarter last year , but the benefits of recent price increases resulted in a sequential improvement to $ 40.3 million for the quarter , " stated KP Tissue's Chief Executive Officer , Dino Bianco . " Market share data in Canada for the most recent 52 - week period further highlights the significant progress we have made since the beginning of 2020. In our market - leading categories we have grown bathroom tissue by 2.4 share points to 35.6 % and facial tissue increased by 4.0 share points to 35.5 % . In the paper towel category , we consolidated our strong second place through innovations and the introduction of new products , translating into gains of 2.6 share points to 23.2 % with continued strong investments ahead . " The Away - From - Home segment , which was hardest hit by the COVID - 19 pandemic , showed further signs of recovery in the quarter with 20 % year - over - year revenue growth supported in part by the faster re - opening of the U.S. economy . On the strength of higher sales volumes , more in - house paper production and cost - reduction initiatives , Adjusted EBITDA for this business turned positive in Q3 2021 . " Inflationary pressure and labour shortages are among the key challenges we will be facing in upcoming quarters . We are executing pricing actions across the business along with a more focused labour approach to manage our margins , while continuing to invest to grow the top - line in both Consumer and AFH . TAD Sherbrooke performance continues to be well ahead of our growth curve and a key enabler for future growth , " concluded Mr. Bianco . Outlook We are seeing activities and behaviour start to return to more pre - COVID levels in both the Consumer and Away - From - Home segments . However , cost inflation and lagged pricing in the fourth quarter are expected to impact results . Q4 2021 Adjusted EBITDA is therefore expected to be lower than Q3 2021 and higher than Q4 2020 . KPLP Q3 2021 Financial Results Revenue was $ 391.4 million in Q3 2021 compared to $ 369.1 million in Q3 2020 , an increase of $ 22.3 million or 6.0 % . The increase in revenue was due to a selling price increase in Consumer Canada , slightly higher sales volume in the Consumer segment compared to the year ago quarter , and an increase in sales volume in the AFH segment resulting from the beginning of COVID - 19 related demand recovery . Revenue was unfavourably impacted by foreign exchange fluctuations on U.S. dollar sales .