Turning Point Brands announced financial results for the fourth quarter and full year ended Dec. 31, 2023.
Total consolidated net sales decreased 6.1 percent in the fourth quarter of 2023 to $97.1 million. Zig-Zag Products net sales decreased by 2.9 percent. Stoker’s Products net sales increased by 18.6 percent. Creative Distribution Solutions net sales decreased by 43.7 percent. Gross profit increased 1.9 percent to $50.5 million. Net income increased $26.4 million to $10.1 million. Adjusted net income increased 15.9 percent to $15.3 million. Adjusted EBITDA increased 7.5 percent to $24.8 million.
“Our fourth-quarter results were at the high end of our expectations,” said TPB President and CEO Graham Purdy in a statement. “The Zig-Zag segment was stable from the previous year, excluding the impact of a discontinued product line, and is well positioned to return to growth in 2024. Stoker’s had an outstanding quarter, posting its highest growth rate in over four years led by double-digit growth year-over-year in Stoker’s MST. We also had strong free cash flow generation during the year, allowing us to build a cash balance to address the remaining principal amount of our convertible notes at maturity in July. Our outlook for 2024 is positive as we expect solid growth in our Zig-Zag and Stoker’s Products businesses.
“Our U.S. Zig-Zag papers and alternative channel business posted a strong quarter with double-digit growth to close the year. With the reduction of trade inventory through the year, Zig-Zag is now positioned to return to growth aided by industry secular growth trends and internal growth initiatives.”
“Stoker’s had an exceptional quarter with strong market share gains in both the MST and loose-leaf categories as its value proposition continues to resonate with consumers,” continued Purdy. “We are excited about the planned expansion of our FRE white nicotine pouch product throughout the year.”