Sales Down, Profit up at Turning Point Brands

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.