Category: Financial

Taat Quarterly Revenue up Nearly 10 Percent

Photo: Taat Global Alternatives
Taat Global Alternatives reported gross revenue of CAD515,464 ($399,049) for the second quarter of fiscal 2022, up 9.7 percent over that reported in the comparable 2021 quarter. More than 54 percent of its gross quarter revenues came from repeat orders during the quarter.
The company’s cost of goods sold dropped, reflecting an improvement in gross margin from 28.09 percent in the first quarter of 2022 to 46.1 percent in second quarter of 2022
The company’s flagship product, a nicotine-free and tobacco-free cigarette called Taat, is currently sold in over 2,700 U.S. stores, which include locations of major national and global chains in the convenience and gas categories.
As a greater quantity of Taat in retail circulation is now manufactured with the Version III formulation of its patent-pending Beyond Tobacco base material, the company and its wholesale/retail partners have reported improvements to the conversion rates of adult smokers who choose Taat instead of their preferred brand of tobacco cigarettes.
Earlier this year, Taat entered into an agreement to acquire ADCO Distributors, an Ohio tobacco distributor. The Taat brand name became a registered trademark in eight global markets including the the United States and the European Union.
“Our fiscal Q2 2022 was a pivotal timeframe for the company as we made two key transitions,” said Taat Founder Joe Deighan in a statement. “The first was the acquisition of ADCO, which added integrated distribution to our business model in addition to a steady revenue stream of over CAD$87 million (based on 2021 financial results) to complement our existing sales pipeline of Taat throughout the United States.
“The second was rotating Taat inventory with our wholesale and retail partners to ensure Taat made with the V3 formulation of Beyond Tobacco is as available as possible across our nationwide footprint. It’s tricky to articulate just how significant V3 is compared to our previous formulations.
“Consumer feedback from adult smokers who have tried V3 reflects validation of our mission to create an experience that is truly better than their preferred tobacco cigarette brand. This has done wonders for our conversion rates at the point of sale, which is why we elected to take the plunge to voluntarily replace existing inventory with product made using V3.
“With the added distribution bandwidth resulting from our acquisition of ADCO, we are excited to be carrying on as an integrated player in the $812 billion global tobacco category, and are thankful to our loyal base of investors for their continued support.”
June 30, 2022
Kaival Brands Reports Quarterly Results

Photo: Song about Summer
Kaival Brands’ revenues decreased by approximately $15.7 million in the second quarter of fiscal year 2022, compared to the same period of fiscal year 2021. Compared with the first quarter of 2022, however, revenues rose 11 percent.
Gross profit in the second quarter of fiscal year 2022 was approximately $387,700, or approximately 12.7 percent of revenues, net, compared to approximately $6.3 million gross profit, or approximately 34.6 percent of revenues, net, for the second quarter of fiscal year 2021.
In February 2022, Bidi Vapor was granted a judicial stay on the marketing denial order (MDO) previously issued by the U.S. Food and Drug Administration prohibiting the marketing and sale of nontobacco flavored Bidi Sticks, which had significantly impacted Kaival Brands’ revenues in previous quarters.
As a result of the grant of the judicial stay of the MDO, the company’s revenues increased in the second quarter of fiscal 2022, as compared to the first quarter of fiscal 2022. Kaival Brands expect this trend to continue as renewed distribution ramps up and sales of nontobacco flavored Bidi Sticks increase, subject to the court ruling in Bidi Vapor’s favor in the pending merits-based case, and subject to the FDA’s enforcement discretion.
“Our results demonstrate strong execution and resiliency in our business, as revenues in the second quarter of fiscal year 2022 rose 11 percent as compared to revenues in the first quarter of fiscal year 2022,” said Kaival Brands founder and CEO Niraj Patel in a statement.
“The recently announced international licensing agreement with Philip Morris Products, a wholly owned affiliate of Philip Morris International, is a major milestone in the company’s efforts to expand the global sales and distribution of the Bidi Stick. From a balance sheet perspective, the international licensing agreement has the potential to generate substantial returns on capital for the company, given the low cash investment needed to reach a significant number of potential new consumers.”
June 21, 2022
Pyxus Reports Progress in Fiscal 2022

Photo: Alliance One International
Pyxus International reported sales and other operating revenues of $1.64 billion, up 23.1 percent from the prior fiscal year. Gross profit as a percent of sales was 13.8 percent, compared with 12.1 percent in 2021. The net loss attributable to Pyxus International was $82.1 million, which improved 30.2 percent from the prior fiscal year despite $32.2 million of goodwill impairment in fiscal 2022.
The results presented for the prior fiscal year period reflect the periods prior to and subsequent to the company’s emergence from Chapter 11 proceedings.
Pyxus International attributed the increase in sales and other revenues to a 16.8 percent increase in kilo volume and a 7.5 percent increase in average price per kilo. The 16.8 percent increase in kilo volume was driven by larger crop sizes in Africa and increased market share in Africa, Asia and South America partially due to customers reversing their vertical integration in certain markets.
In addition, 21.1 million kilos or $178.3 million of shipments were delayed by the Covid-19 pandemic and customer shipping instructions from the prior year into the current year and was offset by similar volume of shipments expected in the current that has been delayed into next year in Africa, North America and South America.
The 7.5 percent increase in average price per kilo was primarily due to product mix having a higher concentration of lamina in Asia, Africa, and Europe, as well as customer and grade mix in Africa and North America.

Our employees worked diligently to successfully increase volumes and revenue compared to the prior year while continuing to navigate global challenges.
Pieter Sikkel, president and CEO, Pyxus International
“We are proud of the progress made by the business during fiscal year 2022,” said Pyxus’ President and CEO Pieter Sikkel, in a statement. “Our employees worked diligently to successfully increase volumes and revenue compared to the prior year while continuing to navigate global challenges, which largely stem from the ongoing impacts of Covid-19 and the unfortunate events in Ukraine.
“We continued to expand our customer relationships as customers sought solutions to reduce supply chain complexities and improve operational efficiencies. Expansion of these relationships, partially attributable to our environmental, social, and governance framework that we publicly announced in December 2021, increased our market share in Africa, Asia, and South America and contributed to a 16.8 percent increase in kilo volume compared to last year.
“Our efforts in fiscal 2022 to execute on our strategy to increase financing sources and working capital lines around the globe resulted in a new asset-based lending credit facility with PNC Bank in February 2022, which provides the company with an extended maturity date, reduced costs and increased potential borrowing availability. In addition, in June 2022, we entered into an agreement to amend our delayed draw term loan facility, which provides the company with an extended maturity date, reduced costs, and increased financial flexibility.
“In January 2022, we completed the exit of our cash-flow-negative cannabinoid operations. Our restructuring activities generated savings in SG&A, which contributed to a $55.9 million decrease in expense compared to last year. As a result, our SG&A expense has normalized and is consistent with levels prior to our investments to develop those businesses.
“For the full year, we expect fiscal 2023 sales to be between $1.75 billion and $1.95 billion and adjusted EBITDA to be between $130 million and $160 million as we anticipate increased demand for our leaf products, the continuation of Covid-related logistical challenges, and cost and price increases due to inflation.
“Maintaining farmer livelihood and a supply chain of responsibly sourced, sustainable, and traceable products remains a top priority as we engage with customers about the impact of inflation on the cost and price of tobacco going forward. Additionally, we have taken proactive measures to secure inputs for the next year, such as fertilizer and fuel, allowing us to remain focused on delivering stakeholder value as we work to grow a better world.”
June 15, 2022
BAT Reiterates Full Year Guidance

Photo: BAT
British American Tobacco reiterated its revenue guidance of £5 billion ($6.27 billion) for 2022, anticipating that its diversification into noncombustible products will pay off.
The new business line “is increasingly contributing to group performance, and we are confident in delivering our £5 billion New Category revenue and profitability targets by 2025”, said BAT CEO Jack Bowles in a statement, adding that the company continues to drive value through its combustibles business.
The noncombustible product consumer base reached 19.4 million in the first quarter of the year, according to BAT. In the first half of the fiscal year, the company invested more than £1 billion to build its brands in this product segment. Its portfolio of non-combustible products includes vapor products, nicotine pouches, tobacco heating products and other oral products.
BAT’s Vuse vapor cigarette now holds a value market share of 35.9 percent in the U.S., up 3.4 percentage points in the year to date versus 2021. Vuse debuted in the U.K. in May and the company anticipates further rollouts for the second half of 2022.
BAT said it continues to enjoy volume share leadership in Modern Oral in Europe, with 69.3 percent of the market.

We are confident in delivering on our current financial targets, irrespective of the timing of the transfer of our Russian business.
Jack Bowles, CEO, BAT
Like many multinationals, BAT has been impacted by the war in Ukraine, which has increased global uncertainty and disruption, further exacerbating inflationary pressures on supply chains. In March, BAT announced that its ownership of the business in Russia was no longer sustainable. The company is in the process of transferring its Russian business to a third party.
“While we are not immune to these pressures, we are confident in delivering on our current financial targets, irrespective of the timing of the transfer of our Russian business,” said Bowles. “This is thanks to our well-established multi-category strategy, our strong portfolio of global brands and our resilient, highly cash generative business.”
While considering BAT’s aspiration to reach £5 billion of sales and achieve profitability in its new products stream “achievable,” Ross Hindle, an analyst at Third Bridge, noted the significance of Russia and Ukraine to BAT. “Russia and Ukraine are very important heated tobacco markets, they are even more important for BAT than PMI, with 26 percent of their heated tobacco sales coming from the region historically,” he told Proactive.
June 9, 2022
ITC Reports Strong Fiscal Year

Photo: Wirestock
ITC reported gross revenue of INR591.01 billion ($7.62 billion) for the fiscal year that ended March 31, 2022, up 22.7 percent over the previous fiscal year. The company’s earnings before interest, taxes, depreciation and amortization were up 22 percent, to INR189.34 billion, while profit before tax was INR198.3 billion, 15.5 percent more than in the previous year. Profit after tax was INR150.58 billion, compared with INR130.32 billion a year earlier.
According to ITC, the operating environment during the year was marked by heightened uncertainty and volatility due to the Covid-19 pandemic, along with unprecedented inflationary headwinds. Geopolitical tensions towards the end of the year exacerbated the situation.
“In spite of significant disruptions during the year, the company’s consumer-centricity, agility in seizing market opportunities, focus on execution excellence harnessing learnings from previous waves and proactive strategic interventions enabled it to post robust growth in revenues and profits, surpassing pre-pandemic levels,” ITC wrote in statement.
After a challenging fiscal year 2020-2021, and despite repeated disruptions this year, ITC’s cigarette business progressively recovered on the back of improved mobility and easing of restrictions, surpassing pre-pandemic levels in the latter half of the year. According to ITC, the business effectively leveraged institutional strengths, digital technologies and learnings from previous waves to respond with agility across all nodes of operations. This included, reconfiguring and realigning supply chain operations to service market requirements through dynamic planning, strengthening direct reach in target markets across all traditional trade channels and augmenting the network to service rural and semi-urban markets efficiently.
ITC says the cigarette business continues to counter illicit trade and reinforce market standing by fortifying the product portfolio through innovation, democratizing premiumization across segments and enhancing product availability backed by superior on-ground execution.
The company introduced several new brand variants to cater to continuously evolving consumer preferences. New launches during the fiscal year included Classic Connect, Gold Flake Neo SMART Filter, Wills Protech, Capstan Excel, American Club Smash, Gold Flake Kings Mixpod, Gold Flake Indie Mint, Wave Boss and Flake Nova.
Meanwhile, ITC says it continues to modernize its manufacturing facilities by introducing contemporary technologies towards securing higher levels of productivity, product excellence and driving innovation. “New benchmarks were set in areas of quality, sustainability, supply chain responsiveness and productivity,” the company wrote in its financial release. “Cutting-edge technologies such as Industry 4.0 and Data Sciences were leveraged to build a smart manufacturing environment of connected systems.”
May 27, 2022
Universal Reports Flat 2022 Results

Photo: Universal Corp.
Universal Corp. reported sales and other operating revenue of $2.1 billion for fiscal 2022 compared with sales and other operating revenue of $1.98 billion in fiscal 2021. Reported operating income was $160.3 million, up 8 percent over that reported in 2021. The company’s tobacco operations contributed sales and other operating revenues of $1.84 billion in fiscal 2022, down slightly from the previous year.
“I am proud of our fiscal year 2022 results, which were generally comparable to those in fiscal year 2021,” said George C. Freeman III, chairman, president and CEO of Universal Corp., in a statement. “During fiscal year 2022, we continued to face a very challenging logistical environment in many of our key tobacco regions. Strong performance from our Ingredients Operations segment offset some challenges that reduced results in our Tobacco Operations segment.
“Our plant-based ingredients platform is coming together nicely and is exceeding our expectations. With the acquisition of Shank’s Extracts, we are now positioned to offer our customers a broad range of products, from fruit and vegetable juices, concentrates and dehydrated ingredients to botanical extracts and flavorings. In fiscal year 2022, the Ingredients Operations segment saw increased demand for organic-based products and continued strong volumes for human and pet food categories as well as for vanilla extracts.

We continue to see opportunities to increase market share and expand the supply chain services we provide our customers.
George C. Freeman III, chairman, president and CEO, Universal Corp.
“Ongoing shipping constraints reduced our Tobacco Operations segment results for the year and quarter ended March 31, 2022, as a result of continued limitations in worldwide shipping availability stemming from the Covid-19 pandemic. Due to the logistical constraints in fiscal year 2021, we had carryover tobacco volumes, which shipped in fiscal year 2022. Similar logistical constraints impacted fiscal year 2022, which led to an even larger amount of tobacco volumes, reflecting a difference of about $70 million in revenue, which did not ship in fiscal year 2022, compared to the carryover volumes from fiscal year 2021. Tobacco shipment volumes in fiscal year 2022 were also reduced due to smaller African burley crops.
“We experienced volatile tobacco and currency markets in Brazil during the fourth quarter of fiscal year 2022. Appreciation of the Brazilian currency coupled with strong demand for leaf tobacco led to unprecedented increases in green prices for leaf tobacco and earlier purchasing of the 2022 Brazilian crop, resulting in disruptions to market dynamics. To fulfill our customers’ orders, leaf tobacco purchases from our contracted farmers this season have been at the prevailing inflated market price for all leaf tobacco regardless of the quality of leaf tobacco. This resulted in larger inventory write downs in the quarter ended March 31, 2022, compared to the prior year’s fourth quarter.
“As we move into fiscal year 2023, we are seeing strong demand for our plant-based ingredients and tobacco products. We believe leaf tobacco supply for flue-cured, burley, dark air-cured and oriental tobaccos to be in an undersupply position. At the same time, we continue to see opportunities to increase market share and expand the supply chain services we provide our customers. We expect continued logistical constraints as well as higher costs, particularly freight, raw materials, labor, fertilizer and energy, in both our tobacco and ingredients businesses. We are actively working to mitigate these challenges, and I am confident that we can deliver another good ye
May 26, 2022
RLX Results Impacted by Pandemic
RLX Technology reported net revenues of CNY1,71 billion ($270.4 million) for the first quarter ended March 31, 2022, compared with RMB2.4 billion in the same period of 2021. Gross margin was 38.3 percent, down from 46 percent in the same period of 2021. U.S. GAAP net income was RMB687.1 million, compared with a U.S. GAAP net loss of RMB267 million in the same period of 2021. Non-GAAP net income was RMB361.8 million, compared with RMB610.5 million in the same period of 2021.
“During the first quarter of 2022, we continued to focus on our core strategy and maintain our leading position in the industry while preparing for the anticipated regulatory changes,” said Ying (“Kate”) Wang, co-founder, chairperson and CEO of RLX Technology, in a statement.
“As the new regulatory framework has come into effect and detailed implementation measures have been released, we are proactively adapting our business to the new market environment by applying for the relevant licenses and developing qualified products that meet the requirements of the most recent national standards. We believe that, by leveraging our leading research and development abilities, we are able to launch market-leading products that conform to the national standards and satisfy our users’ needs.
RLX Technology attributed the decline in net revenues to the impact of the Covid-19 pandemic on its factory in Shenzhen, which limited the company’s production and shipment volumes.
“Our cash position remains solid, which will support us as we navigate the market dynamics and agilely adjust our business to the fluctuating macro environment,” said Chao Lu, chief financial officer of RLX Technology. “Looking ahead, we will remain focused on the business elements under our control, such as product innovation, cost optimization and operating efficiency, to reinforce our fundamentals and position ourselves to seize future opportunities. As always, we are committed to delivering sustainable growth for our shareholders in the long run.”
May 21, 2022
KT&G Posts Strong Results in First Quarter

Photo: KT&G
KT&G’s sales and operating profit soared by 11.5 percent and 10 percent, respectively, to reach KRW844.8 billion ($665 million) and KRW272.6 billion in the first quarter of 2022, according to a company earnings release. Performance was driven by KT&G’s flourishing overseas business, with robust sales of its heat-not-burn (HNB) tobacco products.
“Our sales expansion of HNB products in both domestic and overseas markets, along with increasing export volume of our traditional tobacco products, led to the growth of the company’s total revenue,” a KT&G official was quoted as saying by The Korea Times.
KT&G sold about 9.54 billion cigarettes in Korea in the first quarter of this year, 0.9 percent less than in the same period last year. However, its market share increased by 1.2 percentage points to 65.7 percent. In the HNB sector, the company’s products accounted for 45.1 percent of the domestic market.
KT&G’s overseas volume of combustible cigarettes jumped 43.8 percent to 11.5 billion, thanks to strong sales in the Middle East and Asia Pacific regions.
May 14, 2022
Habanos Reports Record Turnover

Photo: Habanos
Habanos reported a turnover of $568 million in 2021, up 15 percent growth over the previous year.
“The 2021 results confirm the solid path we are on, despite the crisis caused by Covid-19. Last year we surpassed the $500 million mark for premium cigar sales worldwide, an all-time record for the category and a testament to the enormous potential of our business,” Habanos wrote in a statement attributed to its co-presidents, Inocente Núñez Blanco and Luis Sánchez-Harguindey Pardo de Vera.
“We are very proud to lead the premium cigar category and to continue to grow despite the situations experienced over the past two years,”
In terms of volume, Habanos, top markets were Spain, China, Germany, France and Switzerland. Europe remains Habanos’ main regional market, with 59 percent of global sales volume, followed by Asia Pacific (16 percent), America (14 percent) and Africa and the Middle East (11 percent).
“At Habanos, we maintain our commitment to offer the best experience to our aficionados, exclusive products and novelties, all in keeping with the quality, tradition and unique origin that make our Habanos a luxury product appreciated all over the world,” Commercial Vice President Leopoldo Cintra González and Vice-President of Development José María López Inchaurbe wrote in a press note.
“Our aficionados have remained loyal to Habanos and their tastes and, in many cases over the past year, they have incorporated into their domestic consumption vitolas and brands that used to be part of a more social consumption.”
According to Habanos, the Covid-19 pandemic has changed consumer habits. However, working with its distributors, the company said it was able to keep alive smokers’ passion for Habanos with a combination of product launches, virtual events and—when possible—face-to-face events.
While strong demand, in combination with the pandemic, has delayed the supply of some of Habanos’ bestselling vitolas, the company managed to export 38 new products in 2021. Habanos says it the supply situation has gradually improved after the first quarter of 2022.
Following the pandemic-related cancelation of the Habanos Festival in 2021 and 2022, the company presented several new products, including : Cohiba Ambar Cohiba Ideales and Cohiba Edición Limitada 2021, at is virtual Habanos World Days.
Habanos will commemorate the 55th anniversary of its prestigious Cohiba brand on Sept. 9 in Havana.
May 10, 2022
Vector Announces First-Quarter Results

Photo: MIND AND I
Vector Group released its first-quarter 2022 results for the quarter ended March 31, 2022.
Consolidated revenues were $312 million, an increase of 15.1 percent compared to the prior year period. Tobacco Segment revenues were $309 million, an increase of 15.1 percent compared to the prior year period.
Reported net income attributed to Vector Group was $32.5 million compared to $32 million in the previous year. Adjusted net income from continuing operations was $26.6 million compared to $34.9 million in the prior year period. Reported operating income was $75.1 million, a decline of $0.8 million compared to the prior year.
Tobacco segment operating income was $77.6 million, a decline of 4.9 percent compared to the prior year, attributable to the investment in Montego’s significant volume and market share growth.
“Vector Group delivered strong tobacco business revenue performance in the first quarter as we capitalized on favorable market opportunities to substantially increase value and market share,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.
“Our timely investments in expanding our price-fighting Montego brand further demonstrate our proven long-term strategy of optimizing long-term profit through the effective management of volume, pricing and market share growth.”
May 10, 2022