Category: Financial

Turning Point Releases First-Quarter Results

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Turning Point Brands announced financial results for the first quarter ended March 31, 2023.
Total consolidated net sales increased 0.1 percent to $101 million from the first quarter of 2022. Zig-Zag product net sales decreased by 8.3 percent from the previous year due to anticipated reduction of trade inventory during the quarter. Stoker’s product net sales increased by 6.2 percent. Creative Distribution Solutions net sales increased by 8 percent.
Gross profit decreased 6.1 percent to $48.6 million, and net income decreased 30.9 percent to $7.6 million. Adjusted net income decreased 18.1 percent to $11.9 million, and adjusted EBITDA decreased 17.7 percent to $20.8 million.
“We are encouraged by our first-quarter operating results, which fell within our expectations,” said Turning Point Brands President and CEO Graham Purdy in a statement. “The Zig-Zag segment had an anticipated inventory reduction with certain wholesale customers but saw strong performance from the alternative channel and the rollout of Clipper lighters. With the adjustment in trade inventory, Zig-Zag is now well positioned to demonstrate growth for the balance of the year.
“Stoker’s had a solid quarter of performance as the value proposition of Stoker’s MST and looseleaf led to another quarter of market share gains. We opportunistically purchased another $13.9 million in aggregate principal amount of our convertible notes during the first quarter while maintaining a strong cash balance. We are currently maintaining our annual guidance as we focus on executing against our plan for the balance of the year.”
May 3, 2023
JT Reports ‘Solid’ First-Quarter Results

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Japan Tobacco (JT) reported revenue of ¥665.3 billion ($4.86 billion) in the first quarter of 2023, up 14.4 percent over the comparable 2022 quarter.
Core revenue at constant currency exchange rates increased by 6.2 percent to ¥594.6 billion. Adjusted operating profit at constant exchange rates increased by 5.1 percent to ¥204.7 billion. On a reported basis, adjusted operating profit increased by 14.6 percent to ¥223.4 billion. Operating profit increased by 15.7 percent to ¥206.4 billion. Profit increased by 16.6 percent to ¥144.7 billion.
“JT Group delivered solid results in the first quarter, building on the positive momentum across its businesses,” said Masamichi Terabatake, president and CEO of JT. “Robust pricing in the tobacco business continued to drive the strong performance of the group.
“In line with our plan to increase our presence in HTS (heated-tobacco sticks) and establish the foundations for JT Group’s future earnings growth, we successfully launched Ploom X in Italy and Lithuania in April after an encouraging rollout in the U.K. We are making good progress for additional international launches, with a rollout in Portugal planned for mid-May.
“Guided by the group’s management principle, which is to pursue the 4S model, and considering the recently announced JT Group Purpose, we will continue to take all necessary decisions to address operational uncertainties, such as regulatory changes, economic instabilities and volatile foreign exchange rates.”
May 2, 2023
Altria Reports First-Quarter Results

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Altria Group reported net revenues of $5.72 billion in the first quarter of 2023, down 2.9 percent from the comparable 2022 quarter. Revenues net of excise taxes declined 1.2 percent to $4.76 billion.
“We are off to a strong start and believe our businesses are on track to deliver against full-year plans,” said Altria CEO Billy Gifford in a statement. “Our tobacco businesses performed well in a challenging macroeconomic environment. We delivered strong adjusted diluted EPS growth of 5.4 percent, and we announced exciting progress toward our vision.
“We reaffirm our guidance to deliver 2023 full-year adjusted diluted EPS in a range of $4.98 to $5.13. This range represents an adjusted diluted EPS growth rate of 3 percent to 6 percent from a $4.84 base in 2022.”
During the quarter, Altria Group entered into an agreement to acquire Njoy Holdings for approximately $2.75 billion in cash at closing and up to an additional $500 million in cash payments that are contingent upon regulatory outcomes with respect to certain Njoy products.
In March, Altria exchanged its entire minority economic interest in Juul Labs for a nonexclusive, irrevocable global license to certain of Juul’s heated-tobacco intellectual property. As a result of the 2023 Juul transaction, Altria recorded a noncash, pretax loss of $250 million on the disposition of its Juul equity securities for the three months ended March 31, 2023.
Altria determined that the fair value of the intellectual property was not material to its financial statements. As a result, it did not record an asset associated with this intellectual property on its condensed consolidated balance sheet on March 31, 2023.
“The primary drivers of this conclusion were (i) our rights to the intellectual property being nonexclusive, (ii) there being no product or technology transferred to us associated with the intellectual property and (iii) there being no connection between the intellectual property and our current product development plans,” Altria wrote in a press note.
April 27, 2023
BAT Settles Investigation

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BAT has reached an agreement with the U.S. Department of Justice (DOJ) and the Office of Foreign Assets Control (OFAC) to resolve investigations into suspicions of sanctions breaches concerning business activities relating to the Democratic People’s Republic of Korea between 2007 and 2017.
BAT has entered into a deferred prosecution agreement with the DOJ and a civil settlement agreement with the OFAC, and an indirect BAT subsidiary in Singapore has entered into a plea agreement with the DOJ. The total amount payable to the U.S. authorities is $635.24 million plus interest.
Under the agreement, BAT cannot comment on the documentation published by the investigating authorities or on related factual matters.
As announced in its half-year report of 27 July 2022, BAT recognized a provision of £450 million ($540 million) in line with the International Accounting Standards 37 requirements. its full year 2023 group guidance is unaffected by this announcement.
“On behalf of BAT, we deeply regret the misconduct arising from historical business activities that led to these settlements and acknowledge that we fell short of the highest standards rightly expected of us,” said BAT CEO Jack Bowles in a statement.”
“Adhering to rigorous compliance and ethics standards has been, and remains, a top priority for BAT. In recent years, we have transformed our compliance and ethics program, which encompasses sanctions, anti-bribery, anti-corruption and anti-money laundering. The significant steps already taken, as well as the continued refinements to the program that will be made as part of these settlements, will leave us even better equipped to lead a responsible and sustainable business.”
April 26, 2023
Philip Morris Posts First-Quarter Results

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Philip Morris International reported net revenues of $8 billion in the first quarter of 2023, up 3.5 percent over those from the comparable quarter in the previous year. Smoke-free product net revenues increased 14.5 percent to $2.8 billion. The company’s operating income was $2.7 billion during the quarter, 17.2 percent less than in the comparable 2022 quarter.
PMI shipped 171.1 billion cigarettes and heated-tobacco units during the 2023 quarter, down 1.1. percent from the 2022 quarter. The volume of heated-tobacco units increased 10.4 percent to 27.4 billion. Shipments of oral products, boosted by the company’s acquisition of Swedish Match, rose to 173.3 million cans.
“Our business performed strongly in the first quarter, with adjusted diluted EPS [earnings per share] of $1.38 exceeding our expectations,” said PMI CEO Jacek Olczak in a statement.
“Net revenues increased by 3.5 percent on a reported basis and by 3.2 percent organically, reflecting accelerated combustible tobacco pricing and robust underlying heated-tobacco unit shipment volume growth before the impact of inventory movements.
“We continue to successfully integrate Swedish Match, which delivered impressive—and accretive—results, accelerating our transition to a majority smoke-free company. The outstanding performance of Zyn in the U.S. complemented the positive momentum of IQOS, including the excellent traction of ILUMA across launch markets, and reinforces our position as a truly global smoke-free champion.
“With our encouraging start to the year, we are reaffirming our full-year 2023 forecast for organic net revenue growth of 7 percent to 8.5 percent and currency-neutral adjusted diluted EPS growth of 7 percent to 9 percent.”
April 20, 2023
BAT Chair Lauds Progress in 2022

Luc Jobin (Photo: BAT)
BAT made great progress against its strategy in 2022 despite a challenging external environment, according to chairman Luc Jobin.
Speaking at the company’s annual general meeting on April 19, Jobin noted that BAT’s new category business delivered strong volume, revenue and market share growth. The group, he said, delivered a 150 basis points improvement in adjusted operating margin at current rates and delivered another year of 100 percent operating cash conversion. “We also returned £6.9 billion ($8.57 billion) to shareholders through dividends and share buybacks,” said Jobin in a statement.
Around 15 percent of BAT’s revenue is now generated from noncombustible products, a twofold increase since 2018, according to Jobin. “At the end of 2022, we had 22.5 million consumers of our noncombustible products,” he said. “The upward trajectory, and the momentum we have, provides a clear pathway to reaching our goal of 50 million consumers by 2030.”
While expressing satisfaction with the progress BAT had made in transitioning smokers toward less harmful nicotine products, Jobin noted that BAT could not reduce the health impact of its business by itself.
“Policymakers, regulators and public health advocates must help build the science base and create the policy frameworks necessary for adult smokers to switch to less risky alternatives,” he said.
“As a board, it is our responsibility to make sure that BAT’s own transformation continues apace.”
April 19, 2023
Imperial On Track to Meet Full-Year Guidance

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Imperial Brands is on track to deliver full-year results in line with expectations and the company’s guidance of low-single-digit constant currency net revenue growth. Over the next three years, the company continues to expect operating profit growth to accelerate to a mid-single-digit CAGR at constant currency.
The company has seen a robust tobacco pricing and stable aggregate market share across its top 5 combustible markets against a strong comparator.
Product launches across vapor, heated tobacco and modern oral have driven next-generation product net revenue growth.
First-half group adjusted operating profit is expected to be at a similar level to last year on a constant currency basis. Tobacco and next-generation product (NGP) adjusted operating profit has been impacted by the planned increase in NGP investment, the impact of the company’s exit from Russia and the continued unwind of Covid-19. Growth in distribution adjusted operating profit has helped to mitigate these headwinds.
Imperial is on track to meet full-year expectations and its guidance of growing revenue and operating profit. The company completed £523 million ($654.82 million) of the fiscal year 2023 £1 billion share buyback as part of an ongoing program of capital returns.
The interim results for the six months ended March 31, 2023, will be announced on May 16, 2023.
April 13, 2023
Greentank Gets Millions for Vape Technology

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Vape hardware manufacturer Greentank Technologies closed a Series B financing round worth $16.5 million with an unspecified “strategic investor group” that includes Canadian cannabis producer Organigram Holdings.
The funding will be used to launch new vape technology, which Greentank CEO Dustin Koffler said in a statement, “moves away from the traditional ceramic and wicked coil systems commonly used in most vaporizer products today.”
The technology “is expected to launch later this year and serve multiple markets beyond cannabis,” Toronto-based Greentank said in a news release, according to MJ Biz Daily.
The $16.5 million funding round includes a $14.5 million equity investment from the investment group plus $2 million in debt financing from existing shareholders.
The terms of the debt financing were not disclosed.
In a statement, Greentank said its new vape technology “will expand its reach beyond cannabis to serve the broader vape category, including nicotine, e-liquids, pharmaceuticals and more.”
April 4, 2023
Cannabis, Caffeine Pouches Possible

Altria executives updated financial targets during its Investor Day event as well as highlighting several new product developments.
Company leaders touted Altria’s new SWIC heated-tobacco capsule product, which uses proprietary technology to heat tobacco-filled capsules to deliver a vapor similar to a combustible cigarette.
Altria executives also highlighted the company’s new On Plus! nicotine pouch product alongside broad statements on its long-term growth plans.
“We believe the international smoke-free and non-nicotine categories combined represent multi-billion-dollar opportunities for us,” Billy Gifford, CEO of Atria, said. “Our teams are evaluating these opportunities and expect to finalize strategies for these growth areas over the next 12 months. We intend to share specific goals for these areas once established.”
Altria said those non-nicotine offerings could include cannabis and caffeine.
Bonnie Herzog with Goldman Sachs said she came away optimistic about Altria’s future and ability to pivot its portfolio to a smoke-free business following presentations at the event.
“Overall, we feel there is more visibility on (Altria’s) transformation as management spent the bulk of the time discussing its smoke-free efforts, which is clearly the next important phase of growth for (Altria) as it accelerates plans to move beyond smoking and eventually beyond nicotine,” Herzog wrote in an email. “To give shape and structure to its smoke-free vision, management introduced 2028 enterprise goals, which included growing its U.S. smoke-free volume by at least 35 percent, doubling smoke-free revenue to $5 billion (including $2 billion from smoke-free) and maintaining leadership in U.S. tobacco.”
The company updated financial targets during the event; for example, guidance for full-year adjusted EPS in a range of $4.98 to $5.13 was reiterated.
Looking further ahead, the tobacco company set a goal to deliver mid-single-digits adjusted diluted EPS growth on a compounded annual basis through 2028.
March 26, 2023
Kaival Reports First-Quarter Results

Photo: Bidi Vapor
Kaival Brands Innovations Group, distributor of Bidi Vapor products, reported revenues of approximately $2.5 million for the first quarter of fiscal year 2023 compared to revenues of approximately $2.8 million in the same period of the prior fiscal year.
Gross profit was approximately $500,000 compared to approximately a $700,000 gross loss for the first quarter of fiscal year 2022. The net loss for the first quarter of fiscal year 2023 was approximately $3 million compared to a net loss of approximately $2.8 million for the first quarter of fiscal year 2022.
“Despite a slight decrease in revenues versus the comparable quarter last year and our fiscal fourth quarter, primarily due to an unusually large amounts of credits, discounts and rebates to customers, which we do not expect to continue, we are continuing to focus on broadening distribution channels and driving revenue, all with the goal of materially expanding our business and increasing shareholder value,” said Eric Mosser, president and chief operating officer of Kaival Brands, in a statement.
On March 9, 2023, Kaival announced it had signed an agreement with a prominent national broker, increasing distribution by upward of 40,000 retail stores.
On March 7, 2023, the company announced it entered into new retail distribution agreements representing potential new distribution to approximately 13,500 locations.
March 20, 2023