22nd Century Group Reports 73% Increase in Net Income

Aug.11.2022
22nd Century Group Reports 73% Increase in Net Income
22nd Century Group reports 73% YoY growth in Q2 net income, driven by increased manufacturing and GVB Biopharma acquisition.

The 22nd Century Group has reported a net income of $14.48 million for the three-month period ending June 30, 2022, which represents a growth of 73% compared to the same quarter in 2021. Gross profit for the quarter was $892,000, up from $449,000 in the second quarter of 2021.


Image: 22nd Century Group


The increase in net income was due to an increase in the contract manufacturing volume and approximately 50% increase in revenue in the second quarter for GVB Biopharma. The 22nd Century Group acquired GVB Biopharma on May 13.


Revenue from tobacco-related products was $10 million, representing a 19% increase compared to 2021. Revenue from cannabis/cannabis-related products was $4.5 million, reflecting a portion of GVB's quarterly revenue and an increase from zero in the previous year.


The 22nd Century Group has announced plans to accelerate the launch of its reduced-nicotine VLN King and VLN Menthol King cigarettes. Following approval from the US Food and Drug Administration in December, the company will market its VLN brand as a modified risk tobacco product (MRTP). As part of a pilot program, 22nd Century has started selling the product in selected Chicagoland Circle K stores.


James A. Mish, CEO of 22nd Century Group, stated in a release that their VLN pilot program in Chicago exceeded expectations and has prompted the acceleration and expansion of their launch plans. The pilot program and consumer research have demonstrated that their approach of focusing on awareness, education, and testing is resonating with adult smokers. They are currently testing specific incentives aimed at increasing trial and repeat purchase among current smokers while reducing smoking/nicotine consumption, in addition to expanding their business in Chicago and Illinois.


We have expanded our VLN launch to Colorado ahead of schedule. Compared to traditional high-quality cigarettes, Colorado offers reduced tax rates for MRTP authorized products, providing us with a favorable cost structure for our VLN products in the state.


Furthermore, of greater importance, we are closely collaborating with a major consumer goods distributor and a long-term professional distributor that covers convenience stores, grocery stores, and pharmacies throughout the state. This allows us to have full access to over 3,000 potential selling points throughout the entire state.


Statement:


This article is compiled from third-party information and is intended for industry communication and learning purposes only.


This article does not represent the views of 2FIRSTS, and 2FIRSTS cannot confirm the authenticity or accuracy of the article's content. The translation of this article is only for industry communication and research purposes.


Due to limitations in the level of translation proficiency, the translated article may not fully reflect the original text. Please refer to the original text for accuracy.


2FIRSTS is in full agreement with the Chinese government regarding any statements or positions related to domestic issues, as well as those concerning Hong Kong, Macau, Taiwan, and foreign relations.


The compilation of information belongs to the original media and authors, and if there is any infringement, please contact to have it deleted.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

2Firsts First Look|China to End VAT Export Rebates on Vape Devices and Nicotine in April 2027, Following Earlier Removal for HTP Devices and Nicotine Vapes
2Firsts First Look|China to End VAT Export Rebates on Vape Devices and Nicotine in April 2027, Following Earlier Removal for HTP Devices and Nicotine Vapes
China's Ministry of Finance and State Taxation Administration announced on October 12, 2026, that value-added tax (VAT) export rebates for vape devices, nicotine and its salts, and certain non-combustible inhalation products will be eliminated from April 1, 2027. The measure adds four tobacco- and nicotine-related customs codes, including 8543400010, which covers vape devices and qualifying empty pods. China previously eliminated rebates for nicotine-containing vaping products and devices under code 8543400090 in April 2026. According to industry classification information held by 2Firsts, the latter currently corresponds to heated tobacco devices. Export excise tax refund and exemption arrangements will remain unchanged.
Special Report
Oct.12
UK Extends Age-18 Rules to Zero-Nicotine Vapes and Nicotine Pouches From Oct. 29, Bans Vending Machines and Promotional Giveaways
UK Extends Age-18 Rules to Zero-Nicotine Vapes and Nicotine Pouches From Oct. 29, Bans Vending Machines and Promotional Giveaways
Key provisions of the UK's Tobacco and Vapes Act 2026 will take effect on Oct. 29, extending an age-18 sales restriction to all vaping and non-medicinal nicotine products. In England, Wales and Northern Ireland, the change brings zero-nicotine vapes within statutory age-of-sale rules and also covers products including nicotine pouches, strips and pearls. The law will also prohibit proxy purchasing for under-18s, consumer-facing vending machines, promotional giveaways and substantial discounts intended to promote vaping and nicotine products.
Regulations
Oct.10
EU Vape, Heated Tobacco and Nicotine Pouch Tax Reform Reaches Ministerial Talks: Sweden Opposes Proposed 2032 Minimum of 50% of Retail Price or €50/kg for Nicotine Pouches
EU Vape, Heated Tobacco and Nicotine Pouch Tax Reform Reaches Ministerial Talks: Sweden Opposes Proposed 2032 Minimum of 50% of Retail Price or €50/kg for Nicotine Pouches
EU finance ministers are scheduled to discuss tobacco excise reform on November 9, 2026, seeking agreement on higher minimum duties for conventional tobacco and a common EU minimum tax framework covering e-cigarettes, heated tobacco and nicotine pouches. A November 5 Council document identifies nicotine pouch taxation as the main outstanding issue. The Irish Council presidency proposes phased increases, reaching 50% of retail selling price or €50 per kilogram in 2032. Sweden has formally said it cannot support the current compromise, objecting to both the proposed nicotine pouch tax burden and the adjustment of minimum rates based on national purchasing power. The package also addresses cross-border personal-use reference quantities, raw tobacco controls and the continued exclusion of traditional tobacco snus.
Regulations
Nov.10
Special Report|CrossBar's High-Puff Vapes Draw Attention on Pennsylvania's 163-Product Directory as Link Between Earlier 1.3mL PMTA Filings and New 13mL Products Remains Unclear
Special Report|CrossBar's High-Puff Vapes Draw Attention on Pennsylvania's 163-Product Directory as Link Between Earlier 1.3mL PMTA Filings and New 13mL Products Remains Unclear
Pennsylvania began enforcing its electronic nicotine delivery system directory restrictions on October 19, 2026. Among 163 product listings recorded before enforcement, four CrossBar 20K disposables stood out with 13mL capacity, advertised puff counts of up to 20,000 and a flattened design distinct from conventional pod systems and compact disposables. Historical records identify earlier 1.3mL CrossBar products associated with Romo LLC, while newer 13mL products appeared in several state directories beginning in 2025 under entities including Blue Nine LLC. PMTA compliance expert Mr. K identified amendments and application ownership transfers as possible regulatory mechanisms, although neither has been confirmed in this case. Separately, Reynolds' $7.5 million acquisition of 16 PACHA products and related assets illustrates the commercial value of products linked to historic PMTA submissions.
Special Report
Oct.22
Former Roche Neuroscience and Rare Diseases Communications Director Ria Kioupritzi Joins PMI as Scientific Affairs Director
Former Roche Neuroscience and Rare Diseases Communications Director Ria Kioupritzi Joins PMI as Scientific Affairs Director
Eleftheria (Ria) Kioupritzi, a biopharmaceutical professional with more than 15 years of experience, has joined Philip Morris International as Director Scientific Affairs within Corporate Affairs. She previously served at Roche as Senior Scientific Communications Director for Neuroscience and Rare Diseases and worked extensively in spinal muscular atrophy. Her earlier career also covered competitive intelligence, clinical and regulatory monitoring, pipeline development and launch preparation. During her time working in Roche's SMA field, Evrysdi passed through several U.S. FDA milestones, including its initial approval, an expanded indication for younger infants and approval of a tablet formulation. Public records do not show that Kioupritzi herself led the FDA submissions.
Sep.22
Italian Financial Police Seize 4.3 Million E-Cigarettes and Smoking Accessories; 28 Reported to Judicial Authorities Across Operations
Italian Financial Police Seize 4.3 Million E-Cigarettes and Smoking Accessories; 28 Reported to Judicial Authorities Across Operations
Italy's Guardia di Finanza announced on October 28 that officers in Latina province had seized approximately 4.3 million e-cigarettes and smoking accessories at an unauthorized warehouse in an operation involving restrictions on the possession and sale of tobacco-related products. Another 300,000 suspected counterfeit or unsafe items were confiscated during separate inspections, bringing total seizures across the operations to more than 4.6 million products. Twenty-eight people were reported to judicial authorities over suspected smuggling and counterfeiting offenses. Officials did not disclose separate vape quantities, the value of the merchandise or alleged violations associated with individual brands.
Enforcement
Oct.29