Vector Group has released its annual report for 2022, which highlights a record high in tobacco business revenue bolstered by persistent strong sales.
Vector Group reported a consolidated revenue of $363.8 million in the fourth quarter, marking a 16% increase from the same period last year, or an additional $50.1 million. Revenue from their tobacco business also rose by 18.6%, or $57.2 million, to reach $363.8 million. The wholesale and retail market share for the tobacco sector increased from 4.4% to 5.5% and 4.4% to 5.8%, respectively. Operating revenue stood at $89.3 million, representing an increase of $20.7 million year-over-year. The tobacco sector's operating revenue amounted to $93 million, an 11% increase, or $9.2 million, attributed mainly to the Montego brand's switch to a revenue-based strategy instead of sales volume-based.
Throughout the year, Vector Group's total revenue amounted to $1.44 billion, marking an 18% increase from the previous year, or a $220.3 million increase. Within the company, the tobacco division brought in $1.43 billion in revenue, showing an 18.5% growth from the same period the year before, or a $222.6 million increase. The division's market shares in both wholesale and retail increased from 4.1% and 4.2%, respectively, to 5.4% and 5.5%. As for the reported operating revenue, it totaled $339 million and increased by $18.6 million from the previous year. The tobacco division's operating revenue was $347 million, a 3.7% decrease from the same period the year before, or a $13.3 million decrease, which was mainly due to the investment in the Montego brand that significantly increased its sales and market share.
Howard M. Lorber, President and CEO of Vector Group, stated that by seizing opportunities and significantly increasing market share, the company has created value for shareholders and achieved a historic high in revenue for 2022. The tobacco business saw an 11% increase in revenue in the fourth quarter, reflecting a shift in strategy for the Montego brand from volume-based to profit-based. In 2023, Vector Group will continue to focus on optimizing long-term profits through effective management of sales volume, pricing, and market share.
Vector Group Ltd. is a diversified holding company headquartered in Miami, Florida, with administrative offices in Manhattan and tobacco operations in North Carolina. Through its subsidiaries - Liggett Group LLC and Vector Tobacco Inc. - the company produces and sells high-quality tobacco-related products for adult smokers in the United States.
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