Turning Point Brands announced Full Year Net Sales Declined in 2022
On February 24, Turning Point Brands (TPB), a company listed on the New York Stock Exchange, announced its fourth quarter and full year of 2022. Based on the information in this annual financial report, TPB's net sales in the fourth quarter of 2022 were US$103.4 million, and gross profit decreased by 1.5% to US$49.6 million. Compared to 2021, the total net sales decreased by 6.8% to $415 million in 2022.
It is worth noting that although the net sales of its Zig-Zag (mainly engaged in cigarette paper) and Stoker (engaged primarily in moist snuff and chewing tobacco) products increased by 0.9% and 2.6%, but NewGen Products (e-cigarette distribution platform) net sales fell by 11.1%. According to TPB, the uncertainty of e-cigarette regulation in the United States caused a negative impact on sales.
"NewGen's regulatory environment remains unpredictable due to the uncertain outcome of the PMTA process and the possibility of additional state and federal regulations," concluded its CEO, Graham Purdy.
The followings are the fourth quarter and full-year performance data of the three major businesses:
Zig-Zag Products' fourth-quarter net sales rose 0.9 % to $46.4 million. Full-year net sales rose 7.9 % to $190.4 million.
Stoker's Product's fourth-quarter net sales rose 2.6 % to $32 million. Full-year net sales rose 5.3 % to $130.8 million.
NewGen Product's fourth-quarter net sales fell 11.1 % to $24.9 million. Full-year net sales fell 35.2 % to $93.8 million, and gross profit fell 41.1% to $27.7 million.
Early on December 21 last year, in order to optimize the performance of the e-cigarette distribution platform, the NewGen Products business was sold to South Beach Holdings LLC, which established a wholly-owned subsidiary under the name of Creative Distribution Solutions ("CDS"). CDS specializes in distributing e-cigarettes and related products to B2B and B2C customers in the United States. An independent management board will then oversee CDS.
"We believe this restructuring is the best suited for CDS to navigate the current regulatory environment, adapt to future market changes, and pursue further value," Purdy noted.
Reference: TURNING POINT BRANDS ANNOUNCES FOURTH QUARTER AND FULL YEAR 2022 RESULTS
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