Turning Point Brands announced financial results for the first quarter ended March 31, 2024.
For the first quarter of 2024, total consolidated net sales decreased 3.9 percent to $97.1 million compared to the first quarter of 2023.
Zig-Zag products net sales increased by 11.5 percent compared to the previous year. Stoker’s products net sales increased by 8 percent compared to 2023.
Creative Distribution Solutions net sales decreased by 44.9 percent compared to the same period the previous year.
Gross profit increased 6.8 percent to $51.9 million compared to the previous year period. Net income increased 58.1 percent to $12 million. Adjusted net income increased 29.8 percent to $15.4 million. Adjusted EBITDA increased 21.6 percent to $25.3 million.
“We are encouraged by our first-quarter results,” said President and CEO Graham Purdy in a statement “We believe the execution of our strategy has Zig-Zag back on a sustainable growth trajectory; Stoker’s continued to grow and improved its market share; and the national launch of our FRE Modern Oral product is off to a good start.”
“We were encouraged by the outsized performance of the alternative channel in the quarter,” said Purdy. “Our ongoing efforts continue to demonstrate progress toward sustainably growing the Zig-Zag brand.”
The company is maintaining its previous expectation of full-year 2024 adjusted EBITDA of $95 million to $100 million.