Latest news with #ModernOral
IOL News
3 days ago
- Business
- IOL News
British American Tobacco forecasts modest revenue growth for 2025
The headquarters quarters of British American Tobacco at Temple Place in central London. The group said first half revenue was slightly better than it had anticipated and operating profit margins had improved. Image: AFP British American Tobacco (BAT) is likely to generate 1% to 2% revenue growth in its 2025 financial year, as first-half revenue to June 30 was likely to be slightly ahead of previous guidance, CEO Tadeu Marroco said on Tuesday. He said in a trading statement that the full-year revenue growth would support 1.5% to 2.5% growth in adjusted profit from operations. The cigarette and non-combustible tobacco product group said their US operations were expected to return to revenue and profit growth in the first half, driven by strengthening combustibles delivery and 'an excellent Velo Plus performance.' There has also been strong global growth from Velo in Modern Oral, the fastest-growing New Category segment. The performance in Asia and the Middle East remained strong, led by Brazil, Turkiye, and Romania, but performance in the Asia-Pacific, Middle East, and Africa was impacted by excise and regulatory challenges in Bangladesh and Australia, as previously guided. In the first half, New Categories revenue growth was expected to be in the low single digits, with the impact of illicit vapour products in the US and Canada partly offsetting 'excellent Velo performance.' Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ New Category product growth was being driven by the deployment of innovations in key markets, and there was a further improvement in the New Category contribution margin, driven by the group's 'Quality Growth' focus. Cash generation was strong with balanced capital allocation. Leverage was being reduced, and the group remained committed to progressive dividends and sustainable share buy-backs. '2025 is a deployment year and, as previously highlighted, we expect our performance to be weighted in the second half, mainly driven by the roll-out of New Category innovations in key markets from the middle of the year,' said Marroco. He said that while the combustibles industry volume remained under pressure, total industry volume and value share had stabilised. 'Excluding the deep discount segment where we are not present, we are gaining share, driven by Natural American Spirit and Lucky Strike,' he said. He said the vapour category remained impacted by the proliferation of illicit vapour products in the US and Canada, with US legal industry volume down mid-teens year-to-date.
Yahoo
08-05-2025
- Business
- Yahoo
Turning Point Brands Inc (TPB) Q1 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Revenue: Increased 28% to $106.4 million for the quarter. Adjusted EBITDA: Increased 12% to $27.7 million, with a 26% margin. Gross Margin: 56%, down 220 basis points year over year. SG&A Expenses: $36.4 million for the quarter, up $1.8 million sequentially. Modern Oral Revenue: $22.3 million for the quarter. Stoker's Revenue: Increased 63% to $59.2 million. Zig-Zag Revenue: Increased 1% to $47.3 million. Cash Position: Ended the quarter with $99.6 million in cash. Free Cash Flow: $12.4 million for the quarter. CapEx: $2.2 million for the quarter. Nicotine Pouch Sales Guidance: Increased to $80 million to $95 million for the full year. Adjusted EBITDA Guidance: Reaffirmed at $108 million to $113 million for 2025. Release Date: May 07, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Revenue increased by 28% to $106.4 million, surpassing expectations. Adjusted EBITDA rose by 12% to $27.7 million, reaffirming strong financial performance. Significant growth in the white nicotine pouch segment, with sales increasing nearly tenfold year over year. Increased full-year guidance for nicotine pouch sales to a range of $80 million to $95 million. Stoker's segment revenue increased by 63%, driven by growth in loose leaf and MST sales. Negative Points Gross margin decreased by 220 basis points year over year, indicating potential cost pressures. Reported SG&A expenses increased by $1.8 million sequentially, impacting profitability. Potential headwinds from tariffs, with an anticipated $5 million to $7 million impact on imported products. FX headwinds in the Zig-Zag segment due to a stronger Euro, affecting financial performance. Challenges in the Zig-Zag segment with only a 1% sales increase, impacted by the unwind of the Clipper relationship. Q & A Highlights Q: Can you comment on the distribution gains in modern oral in the quarter and expectations for rolling out ALP to brick-and-mortar stores? A: Summer Frein, Chief Revenue Officer: We are making great traction with retailers, including high-profile ones like 7-Eleven, and are in active conversations with other top chains. We have rollouts planned for later this year. Graham Purdy, CEO: The ALP plan is different from the free plan, focusing initially on online direct-to-consumer sales, but we anticipate seeing some brick-and-mortar presence by the end of the year. Q: What is your capacity to produce nicotine pouches at your current domestic MST production facility, and are there plans for onshoring production? A: Andrew Flynn, CFO: Our current supply is adequate, and we are exploring onshoring options to enhance production capabilities.
Business Wire
07-05-2025
- Business
- Business Wire
Turning Point Brands Announces First Quarter 2025 Results
LOUISVILLE, Ky.--(BUSINESS WIRE)-- Turning Point Brands, Inc. ('TPB' or 'the Company') (NYSE: TPB), a manufacturer, marketer and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients, today announced financial results for the first quarter ended March 31, 2025. We are pleased with our first quarter results. Modern Oral sales were $22.3 million, up nearly 10-times versus the prior year and nearly double the prior quarter. MST and looseleaf exceeded our expectations, and Zig-Zag was in line with our expectations. Share Q1 2025 vs. Q1 2024 Total consolidated net sales increased 28.1% to $106.4 million Stoker's Products net sales increased 62.7% Zig-Zag Products net sales increased 1.2% Gross profit increased 23.3% to $59.6 million Net income increased 19.8% to $14.4 million Adjusted EBITDA increased 12.0% to $27.7 million (see Schedule A for a reconciliation to net income) Adjusted net income increased 8.0% to $16.7 million (see Schedule B for a reconciliation to net income) Diluted EPS of $0.79 and Adjusted Diluted EPS of $0.91 compared to $0.63 and $0.80, respectively, in the same period one year ago (see Schedule B for a reconciliation to Diluted EPS) Graham Purdy, President and CEO, commented, 'We are pleased with our first quarter results. Modern Oral sales were $22.3 million, up nearly 10-times versus the prior year and nearly double the prior quarter. Stoker's MST and looseleaf exceeded our expectations, and Zig-Zag was in line with our expectations.' Zig-Zag Products Segment (44% of total net sales in the quarter) For the first quarter, Zig-Zag Products net sales increased 1.2% to $47.3 million. For the quarter, the Zig-Zag Products segment gross profit decreased 7.2% from the prior year but was up 2.9% sequentially from Q4 2024 to $25.6 million. Gross margin declined 490 basis points from the prior year but was flat sequentially at 54.1%. Stoker's Products Segment (56% of total net sales in the quarter) For the first quarter, Stoker's Products net sales increased 62.7% to $59.2 million, driven by strong growth in Modern Oral sales, low double-digit growth in MST and low single-digit growth in looseleaf. For the first quarter, total Stoker's Products segment volume increased 55.1%, while price / product mix increased 7.6%. For the quarter, Stoker's Products segment gross profit increased 63.6% from the prior year, and 23.5% sequentially from Q4 2024 to $34.0 million. Gross margin increased 30 basis points from the prior year, but decreased 20 basis points sequentially to 57.5%. Performance Measures in the First Quarter First quarter 2025 consolidated selling, general and administrative ('SG&A') expenses were $36.4 million compared to $29.1 million in the first quarter of 2024 primarily driven by ALP-related SG&A that was not in the prior year period. First quarter SG&A included the following notable items: $1.6 million of FDA PMTA-related expenses for modern oral products compared to $0.8 million in the prior year period; and $0.2 million of transaction-related costs compared to $0.0 million in the prior year period. Total gross debt as of March 31, 2025 was $300.0 million. Net debt (total gross debt less unrestricted cash) as of March 31, 2025 was $200.4 million. The Company ended the quarter with total liquidity of $161.8 million, comprised of $99.6 million in cash and $62.2 million of availability under its asset backed revolving credit facility. 2025 Outlook The Company is increasing projected Modern Oral sales from $60.0 – 80.0 million to $80.0 – 95.0 million. The Company is maintaining its previous expectation for full-year 2025 adjusted EBITDA of $108.0 – 113.0 million. Earnings Conference Call As previously disclosed, a conference call with the investment community to review TPB's financial results has been scheduled for 9:30 a.m. Eastern on Wednesday, May 7, 2025. Investment community participants should dial in 10 minutes ahead of time using the toll-free number (800) 715-9871 (international participants should call (646) 307-1963) and follow the audio prompts after typing in the event ID: 6640134. A live listen-only webcast of the call will be available on the Events and Presentations section of the investor relations portion of the Company website ( A replay of the webcast will be available on the site two hours following the call. Non-GAAP Financial Measures In addition to financial measures prepared in accordance with generally accepted accounting principles in the United States (GAAP), this press release includes certain non-GAAP financial measures including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS and Adjusted Operating Income (Loss). A reconciliation of these non-GAAP financial measures accompanies this release. About Turning Point Brands, Inc. Turning Point Brands (NYSE: TPB) is a manufacturer, marketer and distributor of branded consumer products including smoking accessories and consumables with active ingredients through its Zig-Zag®, Stoker's®, FRE ®, and Alp Pouch ® brands. TPB's products are available in more than 220,000 retail outlets in North America, and on sites such as For the latest news and information about TPB and its brands, please visit Forward-Looking Statements This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each case, their negative, or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. As a result, these statements are not guarantees of future performance and actual events may differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement made by TPB in this press release, its reports filed with the Securities and Exchange Commission (the 'SEC') and other public statements made from time-to-time speak only as of the date made. New risks and uncertainties come up from time to time, and it is impossible for TPB to predict or identify all such events or how they may affect it. TPB has no obligation, and does not intend, to update any forward-looking statements after the date hereof, except as required by federal securities laws. Factors that could cause these differences include, but are not limited to, those included in the Company's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other reports filed by the Company with the SEC. These statements constitute the Company's cautionary statements under the Private Securities Litigation Reform Act of 1995. Turning Point Brands, Inc. (unaudited) Three Months Ended March 31, 2025 2024 Net sales $ 106,436 $ 83,064 Cost of sales 46,826 34,710 Gross profit 59,610 48,354 Selling, general, and administrative expenses 36,421 29,084 Operating income 23,189 19,270 Interest expense, net 4,414 3,479 Investment gain (291 ) (119 ) Loss on extinguishment of debt 1,235 - Income from continuing operations before income taxes 17,831 15,910 Income tax expense 2,040 3,729 Income from continuing operations 15,791 12,181 Loss from discontinued operations, net of tax - (2 ) Consolidated net income 15,791 12,179 Net income attributable to non-controlling interest 1,396 169 Net income attributable to Turning Point Brands, Inc. $ 14,395 $ 12,010 Basic income per common share: Continuing operations $ 0.81 $ 0.68 Discontinued operations - - Net income attributable to Turning Point Brands, Inc. $ 0.81 $ 0.68 Diluted income per common share: Continuing operations $ 0.79 $ 0.63 Discontinued operations - - Net income attributable to Turning Point Brands, Inc. $ 0.79 $ 0.63 Weighted average common shares outstanding: Basic 17,795,243 17,654,684 Diluted 18,249,306 20,170,314 Expand Turning Point Brands, Inc. Consolidated Balance Sheets (dollars in thousands except share data) (unaudited) March 31, December 31, ASSETS 2025 2024 Current assets: Cash $ 99,640 $ 46,158 Accounts receivable, net of allowances of $75 in 2025 and $66 in 2024 14,861 9,624 Inventories, net 104,440 96,253 Current assets held for sale - 11,470 Other current assets 40,072 34,700 Total current assets 259,013 198,205 Property, plant, and equipment, net 27,659 26,337 Deferred tax assets, net - 995 Right of use assets 10,788 11,610 Deferred financing costs, net 1,662 1,823 Goodwill 135,780 135,932 Other intangible assets, net 64,939 65,254 Master Settlement Agreement (MSA) escrow deposits 29,317 28,676 Noncurrent assets held for sale - 3,859 Other assets 35,394 20,662 Total assets $ 564,552 $ 493,353 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 27,007 $ 11,675 Accrued liabilities 31,596 31,096 Current liabilities held for sale - 2,049 Total current liabilities 58,603 44,820 Deferred tax liabilities, net 885 - Notes payable and long-term debt 293,062 248,604 Lease liabilities 8,565 9,549 Total liabilities $ 361,115 $ 302,973 Commitments and contingencies Stockholders' equity: Preferred stock, $0.01 par value; authorized shares 40,000,000; issued and outstanding shares -0- - - Common stock, voting, $0.01 par value; authorized shares, 190,000,000; 20,366,910 issued shares and 17,895,505 outstanding shares at March 31, 2025, and 20,200,886 issued shares and 17,729,481 outstanding shares at December 31, 2024 204 202 Common stock, nonvoting, $0.01 par value; authorized shares, 10,000,000; issued and outstanding shares -0- - - Additional paid-in capital 124,811 126,662 Cost of repurchased common stock (2,471,405 shares at March 31, 2025 and December 31, 2024) (83,144 ) (83,144 ) Accumulated other comprehensive loss (2,363 ) (2,903 ) Accumulated earnings 160,182 147,164 Non-controlling interest 3,747 2,399 Total stockholders' equity 203,437 190,380 Total liabilities and stockholders' equity $ 564,552 $ 493,353 Expand Turning Point Brands, Inc. Consolidated Statements of Cash Flows (dollars in thousands) (unaudited) Three Months Ended March 31, 2025 2024 Cash flows from operating activities: Consolidated net income $ 15,791 $ 12,179 Loss from discontinued operations, net of tax - 2 Adjustments to reconcile net income to net cash provided by operating activities: Loss on extinguishment of debt 1,235 - Loss on sale of property, plant, and equipment 40 1 Depreciation and other amortization expense 1,309 848 Amortization of other intangible assets 307 305 Amortization of deferred financing costs 448 696 Deferred income tax expense 1,716 114 Stock compensation expense 1,664 2,062 Noncash lease income (380 ) (42 ) Loss on MSA investments - 6 Changes in operating assets and liabilities: Accounts receivable (5,539 ) 1,846 Inventories (8,310 ) (7,488 ) Other current assets (5,399 ) 1,050 Other assets (4,201 ) (270 ) Accounts payable 15,433 10,800 Accrued liabilities and other 512 (2,933 ) Operating cash flows from continuing operations 14,626 19,176 Operating cash flows from discontinued operations - 3,463 Net cash provided by operating activities $ 14,626 $ 22,639 Cash flows from investing activities: Capital expenditures $ (2,185 ) $ (366 ) Purchases of investments (714 ) (7,119 ) Proceeds from sale of investments 500 - Purchases of non-marketable equity investments - (500 ) MSA escrow deposits, net (48 ) (1 ) Investing cash flows from continuing operations (2,447 ) (7,986 ) Investing cash flows from discontinued operations - - Net cash used in investing activities $ (2,447 ) $ (7,986 ) Cash flows from financing activities: Redemption of 2026 Notes $ (250,000 ) $ - Proceeds from 2032 Notes 300,000 - Payment of dividends (1,385 ) (1,149 ) Payment of financing costs (6,582 ) - Exercise of options 973 3 Redemption of options (33 ) - Redemption of restricted stock units (1,828 ) (136 ) Redemption of performance based restricted stock units (2,625 ) (1,212 ) Common stock repurchased - (2,079 ) Financing cash flows from continuing operations 38,520 (4,573 ) Financing cash flows from discontinued operations - - Net cash provided by (used in) financing activities $ 38,520 $ (4,573 ) Net increase in cash $ 50,699 $ 10,080 Effect of foreign currency translation on cash $ (48 ) $ (58 ) Cash, beginning of period: Unrestricted $ 48,941 $ 117,886 Restricted 1,961 4,929 Total cash at beginning of period $ 50,902 $ 122,815 Cash, end of period: Unrestricted $ 99,640 $ 130,903 Restricted 1,913 1,934 Total cash at end of period $ 101,553 $ 132,837 Expand Non-GAAP Financial Measures To supplement our financial information presented in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, we use non-U.S. GAAP financial measures, including EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income . We believe Adjusted EBITDA provides useful information to management and investors regarding certain financial and business trends relating to our financial condition and results of operations. Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income are used by management to compare our performance to that of prior periods for trend analyses and planning purposes and are presented to our board of directors. We believe that EBITDA, Adjusted EBITDA, Adjusted Net Income, Adjusted Diluted EPS, and Adjusted Operating Income are appropriate measures of operating performance because they eliminate the impact of expenses that do not relate to business performance. We define 'EBITDA' as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization. We define 'Adjusted EBITDA' as net income before interest expense, gain (loss) on extinguishment of debt, income tax expense, depreciation, amortization, other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define 'Adjusted Net Income' as net income excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define 'Adjusted Diluted EPS' as diluted earnings per share excluding items that we do not consider ordinary course in our evaluation of ongoing operating performance. We define 'Adjusted Operating Income' as operating income excluding other non-cash items and other items that we do not consider ordinary course in our evaluation of ongoing operating performance. Non-U.S. GAAP measures should not be considered a substitute for, or superior to, financial measures calculated in accordance with U.S. GAAP. EBITDA, Adjusted Net Income, Adjusted EBITDA, Adjusted Diluted EPS, and Adjusted Operating Income exclude significant expenses that are required by U.S. GAAP to be recorded in our financial statements and is subject to inherent limitations. In addition, other companies in our industry may calculate this non-U.S. GAAP measure differently than we do or may not calculate it at all, limiting its usefulness as a comparative measure. In accordance with SEC rules, we have provided, in the supplemental information attached, a reconciliation of the non-GAAP measures to the next directly comparable GAAP measures. Schedule A Turning Point Brands, Inc. (dollars in thousands) (unaudited) 2025 2024 Net income attributable to Turning Point Brands, Inc. $ 14,395 $ 12,010 Add: Interest expense, net 4,401 3,479 Loss on extinguishment of debt 1,235 - Income tax expense 2,040 3,729 Depreciation expense 828 741 Amortization expense 822 412 EBITDA $ 23,721 $ 20,371 Components of Adjusted EBITDA Corporate restructuring (a) - 1,261 ERP/CRM (b) 211 138 Stock based compensation (c) 1,664 2,062 Transactional expenses and strategic initiatives (d) 176 30 FDA PMTA (e) 1,591 841 Mark-to-market loss on Canadian inter-company note (f) 315 - Adjusted EBITDA $ 27,678 $ 24,703 (a) Represents costs associated with corporate restructuring, including severance and early retirement. (b) Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses. (c) Represents non-cash stock options, restricted stock, PRSUs, etc. (d) Represents the fees incurred for transaction expenses. (e) Represents costs associated with applications related to FDA premarket tobacco product application ('PMTA'). The PMTA regime requires the Company to submit an application to the FDA to receive marketing authorization to continue to sell certain of its product lines with continued sales permitted during the pendency of the applications. The application is a onetime resource-intensive process for each covered product line; however, due to the nature of the implementation process for those product lines already in the market, applications can take multiple years to complete rather than the typical one-time submission. The Company currently has only two product lines currently subject to the PMTA process, having utilized other regulatory pathway options available for our other product lines. The Company does not expect to submit additional PMTA applications for any new product lines after the submission for the remaining two are complete. (f) Represents a mark-to-market loss attributable to foreign exchange fluctuation. Expand Schedule B Turning Point Brands Reconciliation of GAAP Net Income to Adjusted Net Income and Diluted EPS to Adjusted Diluted EPS (dollars in thousands except share data) (unaudited) Three Months Ended Three Months Ended March 31, 2025 March 31, 2024 Income from continuing operations before income taxes Income tax expense (i) Net income attributable to non-controlling interest Net Income Diluted EPS Income from continuing operations before income taxes Income tax expense (i) Loss from discontinued operations, net of tax (j) Net income attributable to non-controlling interest Net Income Diluted EPS GAAP Net Income and Diluted EPS $ 17,831 $ 2,040 $ 1,396 $ 14,395 $ 0.79 $ 15,910 $ 3,729 $ 2 $ 169 $ 12,010 $ 0.63 Loss on discontinued operations (a) - - - - - - - (3 ) - 3 0.00 Loss on extinguishment of debt (b) 1,235 141 - 1,094 0.06 - - - - - - Corporate restructuring (c) - - - - - 1,261 295 - - 966 0.05 ERP/CRM (d) 211 24 - 187 0.01 138 32 - - 106 0.01 Stock options, restricted stock, and incentives expense (e) 1,664 190 - 1,474 0.08 2,062 483 - - 1,579 0.08 Transactional expenses and strategic initiatives (f) 176 20 - 156 0.01 30 7 - - 23 0.00 FDA PMTA (g) 1,591 182 - 1,409 0.08 841 197 - - 644 0.03 Mark-to-market loss on Canadian inter-company note (h) 315 36 - 279 0.02 - - Tax benefit (i) - 2,329 - (2,329 ) (0.13 ) - (93 ) - - 93 0.00 Adjusted Net Income and Adjusted Diluted EPS $ 23,023 $ 4,963 $ 1,396 $ 16,664 $ 0.91 $ 20,242 $ 4,650 $ (1 ) $ 169 $ 15,424 $ 0.80 Totals may not foot due to rounding (a) Represents loss on discontinued operations. (b) Represents loss on extinguishment of debt as a result of the redemption of the 2026 Notes. (c) Represents costs associated with corporate restructuring, including severance and early retirement. (d) Represents cost associated with scoping and mobilization of new ERP and CRM systems and cost of duplicative ERP licenses. (e) Represents non-cash stock options, restricted stock, PRSUs, etc. (f) Represents the fees incurred for transaction expenses. (g) Represents costs associated with applications related to FDA premarket tobacco product application ("PMTA"). The PMTA regime requires the Company to submit an application to the FDA to receive marketing authorization to continue to sell certain of its product lines with continued sales permitted during the pendency of the applications. The application is a onetime resource-intensive process for each covered product line; however, due to the nature of the implementation process for those product lines already in the market, applications can take multiple years to complete rather than the typical one-time submission. The Company currently has only two product lines currently subject to the PMTA process, having utilized other regulatory pathway options available for our other product lines. The Company does not expect to submit additional PMTA applications for any new product lines after the submission for the remaining two are complete. (h) Represents adjustment from quarterly tax rate to quarterly projected tax rate of 21% in 2025 and 23% in 2024. (i) Income tax expense calculated using the effective tax rate for the quarter of 11.4% in 2025 and 23.4% in 2024. (j) Tax allocation for discontinued operations excluded from adjusted net income. Expand
