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Category: Business & Finance

  • OTP Growth Hits 2.6% for Major Retailer

    OTP Growth Hits 2.6% for Major Retailer


    Arko Corp., one of the largest operators of convenience stores and wholesale fuel in the U.S., reported strong second-quarter results in its Other Tobacco Products (OTP) segment, with sales up 2.6% and margins rising 170 basis points. CEO Arie Kotler credited expanded assortments, better merchandising, and refreshed “back bars” in nearly 1,000 GPM Investments stores.

    OTP—including cigars, smokeless tobacco, nicotine pouches, and heated tobacco—now accounts for 10% of store assortment, with margins on par with cigarettes, according to Arko’s executive vice president and CFO Robert Giammatteo.

  • Canopy Growth Q1 Revenue Jumps on Strong Cannabis Sales

    Canopy Growth Q1 Revenue Jumps on Strong Cannabis Sales

    Canopy Growth Corp. posted a 9% Y-Y revenue increase to $72.1M in Q1 FY2026, driven by a 43% surge in Canada adult-use cannabis sales and strong demand for new products, including Claybourne infused pre-rolls. The company achieved $17M of its planned $20M in annualized savings, cutting SG&A expenses by 21%. Gross margin fell to 25% from 35%, hurt by lower Storz & Bickel vaporizer sales and a shift toward higher-cost cannabis products.

    International cannabis revenue rose 4% to $9M, with supply chain upgrades expected to boost European margins later this year. Canopy plans to launch a new Storz & Bickel vaporizer in the second half of 2025.

    Net loss from continuing operations narrowed 21% to $23M, while adjusted EBITDA loss widened to $8M.

  • Modern Oral Sales Surge 651% in Turning Point’s Strong Q2 Report

    Modern Oral Sales Surge 651% in Turning Point’s Strong Q2 Report

    Turning Point Brands, Inc. reported robust second-quarter results, with Modern Oral net sales skyrocketing 651% Y-Y to $30.1 million, now making up 26% of total revenue. Total net sales rose 25.1% to $116.6 million, while net income increased 11.3% to $14.5 million. Adjusted EBITDA grew 14.8% to $30.5 million, and adjusted net income hit $18 million.

    The Stoker’s segment, boosted by Modern Oral, posted a 62.9% sales increase, while Zig-Zag declined 6.9% due to product mix shifts. Despite that, the company increased its full-year 2025 Modern Oral sales forecast to $100–110 million, up from $80–95 million.

    CEO Graham Purdy credited the strong results to aggressive growth in Modern Oral and resilience in legacy brands. “Our consolidated second quarter results were better than expected,” he said.

    TPB ended the quarter with $190.1 million in net debt and $176.4 million in liquidity. The company also raised its 2025 Adjusted EBITDA guidance to $110–114 million.

    A replay of the earnings call can be found at turningpointbrands.com.

    The company also declared a regular quarterly dividend of $0.075 per common share. The dividend is payable October 10, to shareholders of record on the close of business on September 19.

  • Universal Reports Solid Start to FY26 Driven by Improved Tobacco Mix

    Universal Reports Solid Start to FY26 Driven by Improved Tobacco Mix

    Universal Corporation announced solid first-quarter results for fiscal 2026, highlighting gains in its Tobacco Operations segment and continued interest in its Ingredients business. Despite a modest revenue dip of $3 million to $594 million, operating income rose by $17 million to $34 million, primarily due to a favorable product mix in Asia within the Tobacco segment. While tobacco sales volumes dropped 8%, sales prices rose 2%, reflecting stronger demand and better product quality.

    CEO Preston D. Wigner emphasized the return to more typical global tobacco buying patterns, with low uncommitted inventory (11%) and larger flue-cured and burley crops underway. “Customer demand remains firm following years of short supply,” he said.

    In the Ingredients segment, sales volumes rose, but operating income was affected by a weaker product mix, tariff-related demand concerns, and higher fixed costs tied to an expanded facility. Still, Universal noted sustained customer interest in its new value-added ingredients offerings.

    The company ended the quarter with $178.4 million in cash, $355 million in available credit, and net debt down $47.1 million quarter-over-quarter.

    The company’s board of directors also declared a quarterly dividend of $0.82 per share on the shares of the company, payable November 3, to shareholders of record at the close of business on October 13.

  • Pyxus Reports Sluggish Q1, But Reaffirms Full-Year Guidance

    Pyxus Reports Sluggish Q1, But Reaffirms Full-Year Guidance

    Pyxus International announced fiscal Q1 2026 results, reporting revenue of $508.8 million, down from $634.9 million a year earlier, primarily due to accelerated shipments into Q4 FY2025. Despite the decline, CEO Pieter Sikkel said results were in line with expectations and aligned with the company’s “normalized cycle” of buying early and selling later in the fiscal year.

    Operating income was $21 million, down from $40.5 million Y-Y, while net loss reached $15.8 million versus a $4.6 million profit last year. Adjusted EBITDA dropped to $29.5 million, reflecting lower sales volumes but was supported by strong global demand and improved pricing.

    The company noted a tobacco inventory of $1.1 billion, reflecting larger crop availability in Africa and South America. Uncommitted inventory remained low at 2.4% of processed stock, signaling sustained demand.

    Despite the early numbers, Pyxus reaffirmed its FY2026 guidance of $2.3–$2.5 billion in revenue and $205–$235 million in adjusted EBITDA.

  • KT&G Posts Strong Q2 Results, Raises Dividend Amid Global Growth

    KT&G Posts Strong Q2 Results, Raises Dividend Amid Global Growth

    KT&G reported strong second-quarter earnings with revenue up 8.7% Y-Y to KRW 1.55 trillion ($1.1 billion) and operating profit rising 8.6% to KRW 349.8 billion ($252 million). The gains mark the third consecutive quarter of growth and a new milestone, with first-half revenue exceeding KRW 3 trillion ($2.2 billion) for the first time.

    Driven by global demand for its tobacco products, especially in Asia and Latin America, KT&G also saw strong results in its next-generation products and health food segments. Global cigarette sales rose 9.1%, reaching 16.7 billion sticks.

    The company raised its interim dividend to KRW 1,400 ($1.008) per share and announced a KRW 300 billion ($216 million) share buyback and cancellation starting August 8, part of its ongoing KRW 3.7 trillion ($2.7 billion) Value Up plan to boost shareholder returns.

    KT&G reaffirmed its goal of achieving double-digit profit growth for 2025.

  • 22nd Century to Release Financials Aug. 14

    22nd Century to Release Financials Aug. 14

    22nd Century Group, Inc. announced today (August 7) that it will host a webcast on Thursday, August 14, at 8 a.m. ET to discuss its 2025 second quarter results, which are to be reported in a press release two hours earlier.

    During the webcast, Larry Firestone, chairman and CEO, and Dan Otto, CFO, will review financial results, discuss progress made in the recent months, and update plans for the 2025 year.

    The live and archived webcast will be accessible on the events web page in the Investor Relations section of the company’s website, at https://ir.xxiicentury.com/events.

  • Scandinavian Raises U.S. Cigar Prices, Discontinues 34 SKUs

    Scandinavian Raises U.S. Cigar Prices, Discontinues 34 SKUs

    Yesterday (August 4), Scandinavian Tobacco Group (STG) announced a price increase on cigars sold in the U.S., effective immediately, marking its annual adjustment for General Cigar Co. and Forged Cigar Co. brands. According to Halfwheel, unlike other recent hikes driven by tariffs, STG clarified that this increase is unrelated to the Trump administration’s tariff policies. However, the existing 5% tariff surcharge will remain, as the tariffs have not been lifted.

    STG also revealed the discontinuation of 34 SKUs, primarily from the Alec Bradley line, which it acquired in 2023.

  • 22nd Century Group Announces Reduced-Nicotine Cigarette Launch

    22nd Century Group Announces Reduced-Nicotine Cigarette Launch

    22nd Century Group, Inc. announced the first shipments of its new Pinnacle VLN Gold and Pinnacle VLN Menthol reduced-nicotine content cigarettes will be available September 1 at nearly 1,000 convenience store locations across 12 states.

    Company CEO Larry Firestone said Pinnacle’s conventional cigarettes have built strong customer loyalty, and the new VLN line offers smokers a choice to significantly reduce nicotine intake—about a 95% reduction compared to traditional cigarettes.

    The company plans to expand the Pinnacle VLN range into more states and stores while continuing to supply other Pinnacle products, including conventional cigarettes, cigarillos, and moist snuff. Firestone emphasized 22nd Century’s commitment to lead the tobacco harm reduction movement by increasing access to these reduced-nicotine products.

  • BAT Posts Strong 1H Results

    BAT Posts Strong 1H Results

    BAT surpassed analysts’ expectations in the first half of 2025, reporting adjusted diluted earnings of 162 pence per share (vs. 159.4p in 2024 and consensus estimate of 154.8p). U.S. revenues, which represent roughly 44% of the group’s total, posted 3.7% constant-currency growth, the first uptick in three years. Driven by strong sales in its new-category offerings like Velo pouches, these smokeless products delivered a 3.9% rise and now account for over 18% of group revenue.

    BAT reaffirmed full-year 2025 guidance, expecting top-line growth at the upper end of its 1–2% range, and adjusted operating profit growth of 1.5–2.5% (excluding Canada). The company faces headwinds from a 4% FX translation penalty and a roughly 2% decline in global tobacco industry volume. However, management remains confident about achieving mid-single-digit growth in its new categories moving forward.

    To support shareholder value, the board has initiated a new share buyback program valued at £1.1 billion, expanding its previous plan by £200 million. Leaders also highlighted a partnership with Accenture aimed at operational efficiencies, including delivering £500 million in annual savings by 2028.