22nd Century Group reported an operating loss of $4.4 million for the first quarter of 2024 compared with $10.4 million in the comparable period of the previous year. Net loss from continuing operations for the first quarter of 2024 decreased to $5.5 million compared with $10.8 million in the prior-year comparative period.
Adjusted earnings before interest, taxes, depreciation and amortization declined to a loss of $3.5 million from a loss of $9 million in the prior-year comparative period.
Net revenue from continuing operations was $6.5 million, as the company further refined its revenue mix away from negative margin filtered cigars in favor of higher margin VLN and conventional cigarettes.
“The first quarter and subsequent events in Q2 2024 demonstrate that we are rapidly transforming 22nd Century’s operating results as we shift our revenue mix and implement a lean operating cost mantra across the company, and strengthening the balance sheet,” said 22nd Century Group chairman and CEO Larry Firestone in a statement.
“Operating costs declined dramatically, to just $3.3 million, well below our target of $4 million. We also recently announced two significant new customer contracts to drive additional revenue and improve our margin profile, including a 20 percent increase in our CMO production unit volumes. Those contracts commenced in April 2024 with revenue ramping in the second quarter.”