Turning Point Brands (TPB), a company listed on the New York Stock Exchange, announced its financial performance for Q4 and full year 2022. According to the annual financial report, TPB's consolidated net sales for Q4 2022 were $103.4 million, with a gross profit decline of 1.5% to $49.6 million. For the fiscal year 2022, TPB's consolidated net sales decreased by 6.8% to $415 million compared to the previous fiscal year 2021.
It is worth noting that although the net sales of its Zig-Zag (mainly rolling papers) and Stoker (mainly moist snuff and chewing tobacco) products have increased by 0.9% and 2.6%, respectively, the net sales of NewGen Products (an e-cigarette distribution platform) have decreased by 11.1%. TPB reports that this is due to the unclear regulation of e-cigarettes in the United States, which has had a negative impact on sales.
Due to the uncertainty of the PMTA process and the possibility of additional state and federal regulations, the regulatory environment for NewGen remains unpredictable," summarized its CEO Graham Purdy.
Here are the fourth quarter and full-year performance data for the three main business lines under its operation:
In the fourth quarter, Zig-Zag Products experienced a 0.9% increase in net sales, reaching $46.4 million. For the entire year, the company saw a 7.9% increase in net sales, totaling $190.4 million.
In the fourth quarter, Stoker's Products reported a 2.6% increase in net sales to $32 million. For the full year, net sales increased by 5.3% to $130.8 million.
In the fourth quarter, NewGen Products reported a decrease in net sales of 11.1% to $24.9 million. For the entire year, the net sales dropped by 35.2% to $93.8 million, while gross profit decreased by 41.1% to $27.7 million.
Faced with NewGen's sluggish business data, TPB has not been idle either.
On December 21st of last year, in an effort to improve performance on their e-cigarette sales distribution platform, it was announced that the NewGen Products business was sold to South Beach Holdings LLC. The latter established a wholly-owned subsidiary under the name 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 committee will oversee CDS.
Purdy stated, "We believe that this restructuring is best suited for CDS to handle the current regulatory environment, adapt to future market changes, and seek further opportunities for maximizing value when they arise.
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Turning Point Brands has released its financial report for the fourth quarter and full year of 2022.
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