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.

Trump Reportedly Signs Off on Plan to Fire FDA Commissioner Marty Makary
Trump Reportedly Signs Off on Plan to Fire FDA Commissioner Marty Makary
According to The Wall Street Journal, people familiar with the matter said President Trump has signed off on a plan to fire FDA Commissioner Marty Makary, though the plan is not yet final and could change. The report said Makary’s tenure has included clashes over vaping, abortion and drug policy, and that some senior administration officials view him as struggling to manage the agency.
May.09 by 2FIRSTS.ai
Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process
Imperial Brands Pulls myblu Vape Business From U.S., Citing Prolonged FDA Approval Process
Imperial Brands said it will phase out its myblu vaping business in the United States, citing prolonged FDA approval timelines for new vape products. The company said it will instead focus on modern oral nicotine products in the U.S., including the expansion of its Zone brand and new flavors. While overall next-generation product revenue continued to grow, revenue from the category in the Americas declined sharply.
May.12
Why Many E-Liquids Today Are "Not Bad, but Not Memorable" – Mylor’s Approach to Experience Design
Why Many E-Liquids Today Are "Not Bad, but Not Memorable" – Mylor’s Approach to Experience Design
From May 8 to 10, 2026, Mylor (Booth E70) will exhibit at The Vaper Expo UK, where it will showcase its systematic experience design solutions for e-liquids. At present, the e-liquid market commonly faces a challenge: many products have “no obvious shortcomings, but lack memorable features.” In response, Mylor has proposed refined solutions across multiple dimensions, including device-adaptive sweetness, progressive cooling sensation, fruit-oriented sourness, and segmented nicotine experience.
May.08
Reuters: Shopify May Ban All Vape Sales This Week Amid Illegal Market Crackdown
Reuters: Shopify May Ban All Vape Sales This Week Amid Illegal Market Crackdown
Reuters reported that Shopify may ban all vape products from its platform as soon as this week, signaling that U.S. enforcement against the illegal vape market is expanding from retailers and importers to e-commerce platforms and payment networks.
MarketBAT
Jun.23 by 2Firsts Perspectives
ZYN by IQOS to Roll Out Across Tokyo From May 11 Through IQOS Shops and Lawson
ZYN by IQOS to Roll Out Across Tokyo From May 11 Through IQOS Shops and Lawson
Philip Morris Japan announced on April 23 at a product briefing that ZYN by IQOS, an oral tobacco pouch previously launched in selected areas, will expand sales in Tokyo. The company said the product will be released progressively from May 11 through IQOS shops, Lawson and other outlets in the city. The launch will include four flavors, each offered in Low and Medium intensity levels, for a total of eight products.
Apr.27 by 2FIRSTS.ai
Cambodia Moves to Draft New Tobacco Control Strategy Targeting Illicit Products and E-Cigarette Spread
Cambodia Moves to Draft New Tobacco Control Strategy Targeting Illicit Products and E-Cigarette Spread
Cambodian Health Minister Cheang Ra has called for the development of a tobacco control strategy for 2027–2031, with the goal of reducing tobacco use by 30% by 2030. The directive was issued during a Tobacco Product Control Committee meeting in Phnom Penh. Priority areas include reducing tobacco use, protecting the public from secondhand smoke, tackling illegal and counterfeit tobacco products, and preventing the spread of e-cigarettes.
Apr.29 by 2FIRSTS.ai