Turning Point Brands (TPB) reported net sales of $104.2 million in the third quarter of 2020, up 7.6 percent over those of last year’s third quarter.
Gross profit increased 12.8 percent to $48.3 million. Net income increased $1.5 million to $7.8 million, despite PMTA costs incurred during the current quarter.
Adjusted EBITDA increased 27.4 percent to $23.9 million.
“Streamlining and repositioning the business at the end of 2019 has paid dividends throughout 2020,” said Larry Wexler, president and CEO of TPB, in a statement.
“Smokeless saw continued same store sales momentum in MST and newfound strength in loose leaf chewing tobacco. Smoking (Zig-Zag) saw its highest growth rate in recent history driven by product and channel growth initiatives behind rolling papers, the benefits of greater control of our MYO cigar wraps business after the Durfort transaction closed in the second quarter, and a burgeoning e-commerce presence, he said.
“The NewGen segment navigated admirably through significant market disruption caused by the PMTA application deadline, said Wexler. “Overall, we are seeing ongoing benefits from reshaping our business towards a more growth-oriented mindset and are able to raise our outlook once again for the remainder of the fiscal year.”
TPB also revised its 2020 guidance provided on July 28, 2020. Absent any further acquisitions, the company projects 2020 net sales to be between $395 million and $401 million, up from previous guidance of $370 million to $382 million.