TobaccoReporter logo

Category: Business & Finance

  • EAS Adds Gabriel Muñiz as Consultant

    EAS Adds Gabriel Muñiz as Consultant

    EAS Consulting Group announced the addition of Gabriel Muñiz to its team of independent consultants, saying he is a “distinguished expert in FDA regulatory compliance, quality systems, and risk management, with nearly two decades of experience in tobacco and other FDA regulated product industries.” Muñiz served as a director at the FDA and a senior regulatory leader at Juul Labs, and brings firsthand knowledge of FDA enforcement strategies, compliance expectations, and regulatory submission requirements. He has experience in quality management systems, regulatory risk assessments, data integrity, supplier control, and FDA inspection readiness.

    “With his unique blend of FDA regulatory experience and industry leadership, Gabriel Muñiz is a trusted resource for companies requiring expert guidance in FDA compliance, regulatory risk management, and litigation support,” EAS said in a statement. “Before transitioning to private industry, Gabriel spent over a decade at the FDA, where he served as an FDA Director and Level II Investigator. He was the first-ever director of the FDA’s Office of Regulatory Affairs Tobacco Operations Staff, where he played a pivotal role in shaping FDA compliance and enforcement activities for the tobacco industry.”

    EAS Consulting Group is a global leader in regulatory solutions and testing for the FDA and USDA-regulated industries, working with more than 200 independent consultants.

  • Cresco Labs Shows Record Cash Flow in FY24

    Cresco Labs Shows Record Cash Flow in FY24

    Cresco Labs Inc. today (March 13) released its financial and operating results for the fourth quarter and FY24. For the year, Cresco Labs reported:

    • Revenue of $724 million, record operating cash flow of $132 million, and free cash flowof $114 million.
    • Gross profit of $364 million. Adjusted gross profit of $374 million; and an adjusted gross margin of 52% of revenue, a 270 bps improvement year-over-year.
    • SG&A of $221 million. Reduced Adjusted SG&A by 12% year-over-year to $212 million, or 29% of revenue.
    • Net loss of $60 million which includes one-time, non-cash charges of $66 million, related to the company’s expected benefits from its updated 280E position, as initially described in the second quarter of 2024.
    • Adjusted EBITDA1 of $200 million, up 15% year-over-year; and Adjusted EBITDA margin1 of 28%, a nearly 510 bps improvement year-over-year.

    “In 2024, the team executed with discipline—streamlining operations, prioritizing profitability, and generating record free cash flow,” said Charlie Bachtell, Cresco Labs CEO and co-founder. “With $132 million in operating cash flow, a leading brand position in our core markets, and retail productivity that outperforms the industry, our foundation is stronger than ever. In 2025, we’re extending our focus to strategically deploy capital to create growth and maximize returns for the years ahead. It’s a straightforward approach: execute at the highest level, generate cash, reinvest in high-ROI opportunities, and repeat.

    “Kentucky is our first of these new market expansions—a strategic addition backed by clear regulations. As one of only two Tier 3 cultivators, we have up to 25,000 square feet of canopy, representing more than 20% of the state’s total allocation. This allows us to scale efficiently, serve patients quickly, and reinvest in our operations—just as we have in Illinois, Pennsylvania, and Ohio. Congratulations to the Cresco team on a phenomenal 2024 and Let’s Go in 2025!”

  • North Dakota Rejects Tobacco Tax Increase

    North Dakota Rejects Tobacco Tax Increase

    Representatives in the North Dakota House rejected a bill Wednesday (March 12) that would raise taxes on nicotine products with the funds earmarked for a tobacco distribution fund. Senate Bill 2281 would have raised taxes on cigarettes by 25 cents a pack and levied higher taxes on vapes, chewing tobacco, and other nicotine products.

    The bill had passed in the Senate, but this week the House Finance and Taxation Committee took a closer look at the idea and said in some cases tobacco goods could be taxed twice and create larger black market sales.

    “If a tax policy was bad last month, it’s still bad today,” Rep. Ty Dressler said. “Senate Bill 2281 implements a large tax increase and a regressive one at that. Most of the impact falls on those that can afford it the least. It may harm retailers, increase black market trade, and weaken economic growth.”

  • RLX to Release Financials Tomorrow

    RLX to Release Financials Tomorrow

    RLX Technology Inc. announced it will release its fourth quarter and FY24 unaudited financial results on Friday, March 14, 2025. The e-vapor company will host an earnings conference call at 8 a.m. EST. Participants should dial in 10 minutes early and request to be connected to “RLX Technology Inc.” using the following dial-in information:

    Dial-In Details:

    • United States (toll free): +1-888-317-6003
    • International: +1-412-317-6061
    • Hong Kong, China (toll free): +800-963-976
    • Hong Kong, China: +852-5808-1995
    • Mainland China: 400-120-6115

    Participant Code: 7971219

    A live and archived webcast of the conference call will be available on the Company’s investor relations website at https://ir.relxtech.com. A replay of the call will be accessible until March 21, 2025. To access the replay, dial the following numbers:

    • United States: +1-877-344-7529
    • International: +1-412-317-0088

    Replay Access Code: 5229492

  • BAT Gives Notice of Annual Meeting 

    BAT Gives Notice of Annual Meeting 

    BAT announced that it has published its Notice of Annual General Meeting 2025 on its website ahead of the meeting on April 16. The following documents are being mailed and made available to its shareholders today (March 13):

    1)    Annual Report and Form 20-F 2024 (including the Strategic Report 2024) www.bat.com/annualreport

    2)    Combined Performance and Sustainability Summary 2024 www.bat.com/annualreport

    3)    AGM Notice 2025 www.bat.com/AGM

    4)    Proxy Form 

    5)    Proxy Form – South Africa 

    6)    Voting Instruction Form – South Africa

    Click here for details on document submissions and local compliance.

  • BAT Announces Pricing of $2.5B Notes Offerings

    BAT Announces Pricing of $2.5B Notes Offerings

    British American Tobacco today (March 12) announced that B.A.T Capital Corporation, a wholly owned subsidiary of BAT, has priced an offering of $2.5 billion aggregate principal amount of guaranteed debt securities consisting of (1) $1 billion 5.350% notes due in 2032, (2) $1 billion 5.625% notes due in 2035, and (3) $500 million 6.250% notes due in 2055.

    The notes will be fully and unconditionally guaranteed on a senior and unsecured and joint and several basis by BAT, B.A.T. International Finance p.l.c., B.A.T. Netherlands Finance B.V. and, unless its guarantee is released in accordance with the relevant indenture, Reynolds American Inc.

    The issuance of the notes is expected to close March 13, subject to customary closing conditions.

    BAT intends to use the net proceeds of the offering of the notes for general corporate purposes, including the potential repayment of existing indebtedness.

    The preliminary prospectus supplement is available at: 424B2 (sec.gov)

    The shelf registration statement is also available at: F-3ASR (sec.gov)

  • Wild Bill’s Breaks into Missouri Market

    Wild Bill’s Breaks into Missouri Market

    Wild Bill’s Tobacco, which has 240 retail stores in Michigan, Indiana, Ohio, and West Virginia, announced the opening of its first store in Missouri. The 1,360-square-foot store is located in Raymore, and according to the company will have one of the largest walk-in humidors in the state.

    Headquartered in Troy, Michigan, and owned by LAMB Ventures, Wild Bill’s recently celebrated its 30th anniversary. The company said it has been anxious to get into the Missouri market and plans to expand around the state.

    “We’re thrilled to bring the Wild Bill’s experience to the Kansas City market, introducing our premium selection and unmatched customer service to a new community,” stated Jon Welzel, Chief Marketing Officer at Wild Bill’s Tobacco. “Raymore is the perfect place to begin our journey in Missouri, and we’re excited to become a part of this vibrant community, with plans to expand in the area for years to come.”

  • Vietnam Told Gradual Tax Hike Will Prevent Illicit Tobacco Surge 

    Vietnam Told Gradual Tax Hike Will Prevent Illicit Tobacco Surge 

    Vietnam is reviewing new tax policies for tobacco products, with experts recommending a gradual tax increase every two years instead of higher annual hikes. The Vietnam Tax Advisory Association (VTCA) has raised concerns that sharp, sudden tax hikes may backfire, leading to higher illicit cigarette trade and reduced tax revenue.

    According to the draft law, the government plans to impose a hybrid tax system on tobacco products, combining the current 75% ad valorem tax with a specific absolute tax increase on each pack of cigarettes. The VTCA submitted its recommendations for two proposed scenarios:

    The first scenario suggests an annual increase of VND 2,000 ($0.08) per pack starting in 2026, leading to a total tax hike of VND 10,000 ($0.40) per pack by 2030.

    The second scenario proposes a VND 5,000 ($0.20) increase in 2026, followed by an additional VND 1,000 ($0.04) increase per year from 2027 to 2029, also culminating in a total increase of VND 10,000 ($0.40) per pack by 2030.

    VTCA has urged policymakers to be cautious, citing examples from other countries where abrupt tax increases led to unintended consequences, mainly that smoking rates didn’t drop as consumers turned to cheaper illicit products.

    If this proposal is not accepted, VTCA has recommended that lawmakers adopt the first scenario, which calls for an annual increase of VND 2,000 ($0.08) per pack starting in 2026, reaching VND 10,000 ($0.40) by 2030.

  • Scandinavian Sales Up, Profits Down

    Scandinavian Sales Up, Profits Down

    Scandinavian Tobacco Group (STG) released its 2024 annual report today, reporting a sales gain of 5.4%, while net profits were down by more than 20%. One of the biggest cigar companies in the world, it saw a 6% sales increase for the year to 9.2 billion Danish kroner ($1.3 billion), compared to 8.7 billion kroner in 2023. Net income, however, dropped for the second straight year to 940 million kroner ($136 million) from 1.2 billion kroner in 2023.

    Last year “was another challenging year with a volatile business environment,” wrote chief executive officer Niels Frederiksen and chairman Henrik Brandt. “The global market for handmade cigars remains dominated by U.S. consumption.” 

    Handmade cigars accounted for 36% of STG’s 2024 revenues, while machine-made cigars and smoking tobacco were 48%.

  • PMI Declares Quarterly Dividend of $1.35 Per Share

    PMI Declares Quarterly Dividend of $1.35 Per Share

    The Board of Directors of Philip Morris International Inc. today (March 6) declared a regular quarterly dividend of $1.35 per common share, payable on April 10, 2025, to shareholders of record as of March 20, 2025. The ex-dividend date is March 20, 2025. For more details on stock, dividends and other information, see www.pmi.com/dividend.