The American e-cigarette company Turning Point Brands has released its financial report for the first quarter ending on March 31, 2024.
In the first quarter of 2024, the company's total consolidated net sales decreased by 3.9% from the same period in 2023, to $97.1 million.
The nicotine pouch brand Zig-Zag saw a year-on-year increase in net sales of 11.5%, while the Stoker's brand saw a year-on-year increase in net sales of 8%.
However, the net sales of creative distribution solutions decreased significantly by 44.9% year-on-year.
In terms of profitability, gross profit increased by 6.8% year-on-year to reach $51.9 million. Net income significantly increased by 58.1% to $12 million. Adjusted net income increased by 29.8% to $15.4 million, while adjusted EBITDA increased by 21.6% to $25.3 million.
In a statement, President and Chief Executive Officer Graham Perdy said, "We are encouraged by our performance in the first quarter. We believe that by executing our strategy, Zig-Zag has returned to a path of sustainable growth; the Stoker's brand continues to grow and expand market share; and our national promotion of the FRE modern oral care product series has had a strong start."
Perdy also mentioned, "The outstanding performance of alternative channels this quarter is exciting, our continued efforts are proving our progress in driving sustainable growth for the Zig-Zag brand."
The company maintained its expectation for adjusted EBITDA between $95 million and $100 million for the full year 2024.
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