Category: Financial

Aspire Withdraws NYSE Listing Application

Photo: kmiragaya
Shenzhen-based Aspire Global has asked U.S. regulators to withdraw its New York Stock Exchange (NYSE) listing application. The move comes as Beijing clamps down on the growth of vaping companies, mandating pre-approval for initial public offerings and restricting foreign investment.
Aspire filed a withdrawal request to the Securities and Exchange Commission on May 9, without providing a reason for the decision in its filing, according to the South China Morning Post. It had originally planned to sell 15 million shares at $7 to $9 each, and had applied to trade on the Nasdaq exchange under the ticker “ASPG.”
Aspire applied for a Nasdaq listing last June, and updated its draft prospectus in January this year. The company was expected to raise $135 million. Its withdrawal comes as recent rules introduced in China make expansion and distribution more challenging for e-cigarette manufacturers.
Other rules introduced last month include a ban on foreign investors in a sector that once attracted venture capital giants such as Sequoia Capital and IDG. Manufacturers and retailers must also get a license before they can produce and market their products. The government banned online advertising in late 2019, and sales in shops are restricted.
More than half of Aspire Global’s sales in 2021 were generated from Europe, with China and the U.S. accounting for 18.5 percent and 10 percent respectively, according to the company’s draft prospectus. In the U.S., Aspire has been marketing its cannabis vaping product, Ispire, since late 2020. “Our strategy is … directed at increasing our e-cigarette vaporizer technology products and developing our cannabis vaporizer technology products,” the company stated in its draft prospectus.
May 10, 2022
PMI Holds 2022 Annual Meeting

Photo: PMI
Philip Morris International held its 2022 annual meeting of shareholders on May 4. André Calantzopoulos, executive chairman of the board, addressed shareholders and answered questions. CEO Jacek Olczak gave the business presentation, which included an overview of PMI’s financial performance and its efforts to support employees impacted by the war in Ukraine, along with an update on the company’s progress in its smoke-free transition and investments in the wellness and healthcare categories.
“The recent months have been an extremely challenging time for many in the PMI family given the war in Ukraine. Our primary concern is for our people and their families, and we are doing everything in our power to help them,” said Olczak in a statement.
“Despite this tragic situation, and the related impacts on our operations in the region and more broadly, the outlook for our business excluding Russia and Ukraine remains strong and our smoke-free ambition remains intact. We are off to a strong start to the year, following an excellent performance in 2021, with robust underlying momentum and a reacceleration in IQOS user growth.
“We continue to prioritize returns to shareholders and have increased the dividend for 14 consecutive years since the 2008 spin. In 2021, we raised the dividend by 4.2% to an annualized rate of $5.00 per common share. In addition, since July 2021, we have repurchased approximately $1 billion in shares as part of our current three-year program.”
Approximately 81 percent of the shares entitled to vote were represented at the meeting in person or by proxy. The shareholders elected 14 nominees for director; approved, on an advisory basis, the compensation of named executive officers; approved the 2022 performance incentive plan; ratified the selection of PricewaterhouseCoopers as independent auditors; and voted against a shareholder proposal. Final voting results will be included in a Form 8-K that PMI will file with the SEC in the coming days.
An archived copy of the webcast of the meeting will be available for approximately one year from the date of the meeting at http://www.virtualshareholdermeeting.com/PMI2022.
May 5, 2022
22nd Century Reports Quarterly Results

Photo: 22nd Century Group
22^nd Century Group reported net sales of $9 million for the first quarter of 2022, up 33 percent from the comparable 2021 quarter. The increase was due to increased contract manufacturing volumes in both filtered cigars and cigarettes, including products for export markets and pricing adjustments.
Gross profit for the first quarter was $500,000, compared to $600,000 million in the prior year first quarter. Gross margin in the first quarter was reduced by lower research cigarette sales volume compared with the prior year, and a Master Settlement Agreement adjustment of $200,000 recorded in the quarter.
Operating loss for the first quarter 2022 was $8.1 million, compared to an operating loss of $5.2 million in the prior year period. Net loss was $8.9 million.
“We are off to an exciting start with our VLN reduced nicotine content cigarette pilot launch at more than 150 Chicagoland Circle K stores,” said James A. Mish, chief executive officer of 22nd Century Group, in a statement.
“The recently proposed menthol cigarette ban by the FDA could leave our VLN Menthol King reduced nicotine cigarettes as the only menthol cigarette on the market, helping adult menthol smokers find an off-ramp from nicotine addiction. Early sales in our Chicago pilot affirm the importance of this approach, with sales of VLN Menthol King already selling ahead of non-menthol in pilot stores. We fully anticipate an even more favorable regulatory environment as the FDA continues to advance the agency’s comprehensive plan, which includes requiring all cigarettes to be ‘minimally or non-addictive,’ a standard our VLN King and VLN® Menthol King cigarettes already meet.”
May 5, 2022
Scandinavian Tobacco Reduces Share Capital

Photo: Scanrail
Participants in the March 31 annual general meeting of Scandinavian Tobacco Group adopted a proposal by the board of directors to reduce the company’s share capital by nominally DKK4.5 million ($638,224) from nominally DKK97.5 million to nominally DKK93 million by canceling some of the company’s treasury shares.
On May 4, the board of directors resolved to complete the capital reduction, and the reduction of the share capital has been registered with the Danish Business Authority.
Following the capital reduction, the company’s share capital amounts to nominally DKK93 million divided into 93 million shares of DKK1 each. The total number of voting rights is 93 million.
The updated Articles of Association can be found on the company’s website.
May 5, 2022
JT: Strong Quarter Despite Uncertainty

JTI’s headquarters in Geneva
The JT Group reported revenues of ¥581.5 billion ($4.45 billion) in the first quarter of 2022, up 6.2 percent over that reported in the first quarter of 2021. Adjusted operating was ¥194.9 billion during the quarter, 9.4 percent more than in the comparable 2021 quarter. The JT Group posted an operating profit of ¥178.4 billion and a profit of ¥124.1 billion in the quarter, up 11.4 percent and 9.1 percent, respectively, over the 2021 quarter.
“Following the combination of the tobacco businesses this year, the JT Group delivered strong results with adjusted operating profit at constant FX increasing by 4.5 percent,” said JT Group CEO Masamichi Terabatake in a statement. “However, several uncertainties remain, such as the changing operating environment in Russia, the rapidly evolving operational costs and a very volatile inflation. Considering these factors, as of the first quarter, we have decided not to revise the full year guidance.
On March 10, the JT Group announced the suspension of new investments and marketing activities in Russia. The company is currently evaluating various options for its Russia business, including potentially transferring its ownership.
Russia is one of the JT Group’s largest markets. The company has four factories and employs nearly 4,000 people in the country. Terabatake said the company remains committed to its employees in Russia, including to secure their employment.
“We will continue to closely monitor the situation and prioritize the safety of our employees and their families by extending all possible support to affected people. We will take all necessary decisions to address the changing situation in accordance with the group’s management principle, which is to pursue the 4S model.”
Under the 4S model, the JT Group strives to fulfill its responsibilities to consumers, shareholders, employees and the wider society.
April 28, 2022
Altria Businesses ‘on Track’

Photo: Casimiro
Altria Group reported its 2022 first-quarter business results and reaffirmed its guidance for 2022 full-year adjusted diluted earnings per share (EPS).
“We are off to a strong start to the year and believe our businesses are on track to deliver against their full-year plans. Our tobacco businesses performed well in a challenging macroeconomic environment, and we continued to make progress toward our vision to responsibly lead the transition of adult smokers to a smoke-free future,” said Billy Gifford, Altria’s CEO, in a statement.
“We reaffirm our guidance to deliver 2022 full-year adjusted diluted EPS in a range of $4.79 to $4.93. This range represents an adjusted diluted EPS growth rate of 4 percent to 7 percent from a $4.61 base in 2021. We continue to expect that adjusted diluted EPS growth will be weighted toward the second half of the year.”
Net revenues decreased 2.4 percent to $5.9 billion, primarily driven by the sale of the company’s wine business in October 2021. Excluding the wine segment, net revenues were essentially unchanged. Revenues net of excise taxes decreased 1.3 percent to $4.8 billion.
A conference call to discuss results with the investment community and the news media was held today at 9 a.m. Eastern Time.
April 28, 2022
Match Sets Dividend and Elects Directors

Photo: Swedish Match
Participants in Swedish Match’s annual general meeting on April 27 resolved to pay a dividend of SEK1.86 ($0.19) per share distributed to the shareholders in two equal payments of SEK0.93 per share, the company announced in a press note.
The record date for the right to receive a cash dividend for the first payment is April 29, 2022, and payment through Euroclear Sweden is expected to be made on May 4, 2022. The record date for the second payment is Nov. 14, 2022, and payment through Euroclear Sweden is expected to be made on Nov. 17, 2022.
The board of directors and the CEO were granted discharge for the financial year 2021.
Charles A. Blixt, Jacqueline Hoogerbrugge, Conny Karlsson, Alexander Lacik, Pauline Lindwall and Joakim Westh were reelected as members of Swedish Match’s board of directors. Sanna Suvanto-Harsaae was elected as a new member of the board of directors. Conny Karlsson was reelected as chairman of the board.
The annual general meeting elected Deloitte as auditor until the end of the annual general meeting 2024.
The board of directors’ remuneration report for 2021 was adopted. Furthermore, the annual general meeting approved the board of directors’ proposal that it be authorized to resolve on acquisition of the company’s own shares, on one or several occasions prior to the next annual general meeting, provided the company’s holding does not at any time exceed 10 percent of all shares in the company. The shares shall be acquired on Nasdaq Stockholm at a price within the price interval registered at any given time, i.e., the interval between the highest bid price and the lowest selling price. Swedish Match owns 59,285,810 treasury shares as per April 27, 2022.
In addition, the company’s share capital was reduced by SEK13,559,080.98 by means of withdrawal of 55,000,000 previously repurchased shares held in treasury, with a simultaneous bonus issue, without issuing any new shares, of a corresponding amount to restore the share capital. The shareholders further approved the proposal that the reduction will be allocated to a fund for use pursuant to a resolution adopted by the annual general meeting.
The annual general meeting approved all other proposals made by the board of directors and the nominating committee. The proposals are outlined in the published notice of the annual general meeting.
April 27, 2022
Bank Policies Threaten Egypt’s Leaf Imports

Photo: Taco Tuinstra
The reluctance of banks to open the documentary credits required to import leaf tobacco is endangering the operations of Egypt’s tobacco factories, reports Egypt Independent, citing the Tobacco Division of the Federation of Egyptian Industries ((FEI).
FEI Division Head Ibrahim al-Embabi warned that more than 23 factories will close following the Eid al-Fitr holiday, after which they will have used their entire stock of raw tobacco. Due to a ban on tobacco cultivation in Egypt, the country’s tobacco industry is entirely dependent on leaf imports.
Earlier this year, Egypt’s Central Bank of Egypt stopped collecting documents upon import, requiring importers to cover the entire value of the shipment before importing. The decisions forced many factories, including tobacco manufacturing plants, to suspend their imports of raw materials.
Al-Embabi said that stopping the import of raw materials and the consequent disruption of production will lead to the displacement of nearly 30,000 direct workers in the sector, and threaten the state’s intake of taxes and fees paid by cigarette and tobacco companies, which exceed EGP79 billion ($4.27 billion) annually.
Tobacco factories import raw materials worth about $500 million each year while exports reach $120 million annually.
The remaining percentage is used to satisfy the needs of the local market. Despite its high consumption of imported raw materials, the tobacco sector is the state treasury’s most important source of revenue, according to al-Embabi.
April 27, 2022
TPB’s Quarter ‘In Line With Expectations’

Yavor Efremov (Photo: TPB)
Turning Point Brands announced financial results for the first quarter ended March 31, 2022.
Net sales for the first quarter of 2022 decreased 6.3 percent to $100.9 million compared to the previous year. Net sales for Zig-Zag and Stoker’s Products increased 10.1 percent over 2021. Gross profit decreased 2.8 percent to $51.8 million while net income decreased 6.7 percent to $11 million.
“Our first- quarter results were in line with our expectations as we continued to grow our market share for both Zig-Zag and Stoker’s while navigating a difficult consumer and regulatory environment to drive profitability in each of our segments, including NewGen. Sales decreased 6 percent from the previous year driven by a 37 percent decline in NewGen sales but showed double-digit growth excluding NewGen,” said Yavor Efremov, president and CEO of Turning Point Brands, in a statement.
“Zig-Zag delivered another strong growth quarter led by our U.S. papers business, which built on its market-leading share during the quarter. At the same time, Stoker’s maintained its growth trajectory driven by double-digit growth in the moist snuff tobacco business, which benefited from consumer trade-down as a leading value brand. Despite the expected sales decline, NewGen maintained positive profitability during the quarter while improving the distribution reach for its regulated products.”
“We continue to monitor FDA developments. While added regulation may cause short-term disruption, this is a necessary step to fully regulate the industry, create a level playing field and provide consumers with additional reduced-risk alternatives to cigarettes,” continued Efremov.
“We maintain a strong balance sheet that is allowing us to deploy a substantial amount of our free cash flow toward share repurchases, which continued during the quarter. While inflationary pressures, including a spike in gas prices, are impacting the consumer wallet, we remain favorably positioned as we continue to execute and outpace the overall industry. In addition to solid execution on the business side, we have completed both the ERP and CRM scopes we discussed on our last earnings call. I am particularly proud of the fact that the organization undertook a detailed review of the business with heavy involvement from every level of the company while delivering a solid quarter.”

April 27, 2022
PMI: Strong Quarter Despite Uncertainty

Photo: Vitezslav Vylicil
Philip Morris International reported net revenues of $7.75 billion for the first quarter of 2022, up 2.1 percent over that reported for the 2021 first quarter. Its operating income was $3.3 billion, compared with $3.44 billion in the previous year’s quarter. PMI reported adjusted operating income of $3.34 billion, down 4.4 percent from the comparable 2021 period.
The company’s operations during the quarter were heavily impacted by the war between Russia and Ukraine, two important markets for PMI.
On Feb. 25, PMI announced the temporary suspension of its operations in Ukraine, including at its Kharkiv factory. While activities in the east of Ukraine remain the most heavily impacted, the company said it has seen some resumption of retail activities where safety allows.
In 2021, Ukraine accounted for around 2 percent of PMI’s total cigarette and heated tobacco unit shipment volume and under 2 percent of PMI’s total net revenues. As of March 31, 2022, PMI’s Ukrainian operations have approximately $400 million in total assets.
In March, PMI announced it would significantly scale down its operations in Russia, discontinuing a number of cigarette products, including Marlboro and Parliament, and reducing its manufacturing activities accordingly. According to PMI, the discontinued products represent approximately one-quarter of the company’s domestic cigarette SKUs.
PMI also canceled all product launches planned for 2022 in Russia, including the launch of its flagship heated tobacco product IQOS Iluma, which was originally planned to take place in March 2022. In addition, PMI canceled plans to manufacture its Terea heated tobacco units for IQOS Iluma in Russia and the related ongoing investment of $150 million.
PMI is currently working on a plan to exit Russia in an orderly manner. In 2021, Russia made up almost 10 percent of total shipment volumes and around 6 percent of PMI net revenues. As of March 31, 2022, PMI’s Russian operations have approximately $1.4 billion in total assets.
“The recent months have been an extremely challenging time for many in the PMI family given the war in Ukraine,” said PMI CEO Jacek Olczak in a statement. “Our primary concern is for our people and their families, and we are doing everything in our power to help them.”
“Despite this tragic situation, we were able to deliver a very strong performance in the first quarter—reflecting the hard work and dedication of our employees globally—with organic net revenue and currency-neutral adjusted diluted EPS growth coming ahead of our expectations.
“The re-acceleration of our IQOS business continued in the quarter, highlighted by a sequential increase of over 1 million total IQOS users, excluding Russia and Ukraine, and the superb performance of Iluma in initial launch markets. This was complemented by the robust performance of our combustible business, which exceeded our objective of stable category share in the quarter and delivered positive shipment volume and organic net revenue growth.
“We expect to deliver robust top- and bottom-line growth this year on a pro forma adjusted basis, including full-year adjusted diluted EPS growth of 9 percent to 11 percent, excluding currency. This gives us confidence in achieving our 2021 to 2023 compound annual growth targets, on a pro forma basis, and our ambition to become a majority smoke-free company by 2025.”
April 21, 2022