TPB Reports Robust Demand in Hard Times

Turning Point Brands (TPB) announced its first quarter results for 2020.

Net sales decreased 1 percent to $90.7 million while gross profit increased 2.4 percent to $41.4 million. Net income decreased to $3.3 million, reflecting inclusion of premarket tobacco product application costs.

“Our results this quarter reflect the robust demand for our products even during challenging times,” said Larry Wexler, president and CEO of TPB. “Sales performance was driven by mid-teens growth in our core smokeless and smoking segments partially aided by trade load-in as a response to strong customer demand and the uncertain environment. We estimate trade load-in impacted sales in our core tobacco segments by $2 million. Our NewGen segment also delivered better than expected results after we reorganized the business last quarter.”

“As a result of the extraordinary situation we are facing [the Covid-19 outbreak], our focus during the quarter was on the safety and well-being of our colleagues and the communities and customers we serve. This focus serves as the basis for decisions we make as a company and how we react going forward,” said Wexler.

In response to Covid-19, TPB has implemented safety precautions, including split shifts in warehouses and manufacturing facilities, temperature scans, additional contactless hand sanitizing stations, protective equipment, social distancing guidelines, increased cleaning and sanitation, the suspension of unnecessary travel, the implementation of telecommuting where possible, videoconferencing, and tele-selling initiatives. Some of these changes are likely to remain in place even after the pandemic crisis is over, leading to ongoing cost savings.