Category: Financial

Smoore Revenue Jumps Nearly 40 percent

Smoore’s Chairman and CEO Chen Zhiping (Photo: Smoore)
Smoore reported revenues of CNY13.75 billion ($2.16 billion) in 2021, up approximately 37.4 percent over the previous year.
The company maintained its position as the world’s largest manufacturer of vaping devices. According to Frost and Sullivan, Smoore’s share of the global vaping devices market increased to 22.8 percent in 2021 from 18.9 percent in 2020.
Smoore attributed its strong performance largely to the success of its flagship FEELM closed-system brand. To date, vaping devices with FEELM atomizers have been exported to 50 countries in Europe, America, East Asia, Africa and Oceania.
Smoore invested more than CNY670 million in research and development during 2021, representing an increase of approximately 59.7 percent over the previous year. “The driving force of the atomization industry is technological innovation, which brings fundamental breakthroughs in product safety and flavor reproduction,” said Smoore Chairman Chen Zhiping in a statement.
As of Dec. 31, 2021, Smoore had filed 3,408 patent applications, covering innovations relating to temperature control, heating elements, leakage-prevention and e-liquid storage, among other technologies.
The company recently set up a risk-assessment laboratory to help customers comply with the EU’s Tobacco Product Directive, along with seven fundamental research centers in China and the United States. It also installed a fully automated production line for vapor product assembly and packaging with a capacity of 7,200 standard vaporizers per hour.
In 2021, Smoore introduced the world’s first ceramic coil disposable pod solution. In January 2022, it showcased the world’s thinnest ceramic coil vape pod solution, FEELM Air in London.
The company has pledged to achieve carbon neutrality in its direct and indirect production and operational activities by 2050.
Frost and Sullivan expects the global market for vaping devices to grow at a compound growth rate of approximately 25.3 percent.
April 8, 2022
Imperial Brands Issues Trading Update

Photo: Casimirokt | Dreamstime.com
Imperial Brands continues to perform in line with its five-year strategy launched in 2021, the company announced in a trading update.
“Focused investment in our top five combustible markets, which account for around 70 percent of adjusted operating profit, has driven an increase in aggregate market share for those markets,” the company wrote. “Gains in the U.S., U.K. and Australia more than offset declines in Germany and Spain. These share gains were achieved while maintaining strong pricing discipline, and overall tobacco volumes are in line with expectations.”
According to Imperial Brands, consumers have responded positively to the pilots of its Pulze heated-tobacco system in Greece and the Czech Republic and an improved consumer marketing proposition for its Blu vapor product in the U.S. “We are making good progress against our strategic objective of building a sustainable, consumer-centric next-generation product (NGP) business, and we will provide an update on our next steps at the interim results,” the company wrote.
Imperial Brands expects first-half NGP revenues to be slightly ahead of the prior period, driven by growth in Europe.
“We are on track to deliver full-year results in line with our revised guidance issued on 15 March, with expected full-year net revenue growth of around 0 [percent to] 1 percent on a constant currency basis and adjusted operating profit growth of around 1 percent,” Imperial said.
The company expects first-half group adjusted operating profit to grow by around 2 percent on a constant currency basis, benefiting primarily from reduced losses in NGP. “As expected, tobacco performance will be weighted to the second half,” the company wrote. “First-half tobacco operating profit will be broadly flat on last year on a constant currency basis, with increased investment behind our strategy offsetting the benefit of reduced U.S. litigation costs compared to last year.”
In the wake of Russia’s invasion of Ukraine, Imperial Brands is continuing negotiations with a local third party about an orderly transfer of its Russian assets and operations as a going concern.
April 6, 2022
Morningstar: Stocks Hit Too Hard By Ukraine War

Photo: Engdao
Tobacco companies’ retreat from Russia will materially impact their cash flows, at least in the short term, according to Morningstar. Nonetheless, the financial services company believes investors have overstated the valuation impact as the tobacco companies will be able to recoup some their losses after hostilities end.
Following Russia’s invasion of Ukraine and the imposition of sanctions by Western countries, the leading multinational tobacco companies have all reevaluated their operations in Russia.
Philip Morris International ceased investment in Russia and plans to scale down its business there. BAT will exit Russia and transfer its Russian assets to a third party. Imperial Brands has begun negotiations with a local third party about a transfer of its Russian assets and operations. Japan Tobacco has ceased planned investment in Russia.
Russia is the world’s fourth-largest cigarette market, with market volume of almost 206 billion sticks in 2020, according to Euromonitor. Japan Tobacco is the most exposed with a volume share of 38 percent, representing almost 16 percent of group tobacco volume in 2021. Philip Morris International and BAT are the next largest with shares of 26 percent and 25 percent, respectively, representing 9 percent and 8 percent of group volume. Although Imperial Brands is smaller, with only 8 percent share, Russia represents 7 percent of group volume, according to Morningstar.
The Russian cigarette market has been declining at a 6 percent compound annual rate over the past 10 years and almost 7 percent over the past five years, according to Euromonitor. However, it has been a promising market for tobacco-heating products. Morningstar estimates that heated-tobacco units accounted for 11 percent of the total market in 2021, making Russia one of the largest markets for heated-tobacco outside Asia.
Exiting Russia would be especially painful for PMI because it would jeopardize its medium-term targets for IQOS HeatStick sales, according to Morningstar
Meanwhile, the collapse in the ruble will create translational foreign exchange pressure for all manufacturers and is likely to make an already low-margin market even lower. Regional margins are also likely to contract materially in the near term. Some manufacturers have pledged to continue paying the salaries of employees in Russia and Ukraine even as revenue will probably be decimated.
March 21, 2022
RLX Net Revenue Jumps in 2021
Net revenues of RLX Technology increased by 123.1 percent to RMB8.52 billion ($1.34 billion) in fiscal year 2021. The increase was primarily due to an increase in net revenues from sales to offline distributors, which was mainly attributable to the expansion of the company’s distribution and retail network (China banned internet sales of vapor products in October 2019).
Gross profit increased by 140.4 percent to RMB3.67 billion while gross margin increased to 43.1 percent from 40 percent in the prior year.
For the fourth quarter of 2021, RLX Technology reported net revenues of RMB1.9 billion, up 17.7 percent from the comparable 2020 quarter. Gross margin was 40.2 percent compared with 42.9 percent in the same period of 2020.
“We are pleased with our operational and financial performance in the fourth quarter, ending 2021 on a strong note. Despite the evolving industry regulatory framework and challenging backdrop of recurrent Covid-19 outbreaks, we remained focused throughout the year on optimizing our distribution and retail channels, investing in scientific research, new product development and digitalization upgrades,” said Ying (Kate) Wang, co-founder, chairperson of the board of directors and CEO of RLX Technology, in a statement.
“The 2021 fiscal year was defined by year-over-year revenue growth of 123.1 percent, further cementing our leadership as a trusted e-vapor brand for adult smokers. Looking ahead, we are confident that the company is well positioned to further explore the enormous potential of this vast yet growing industry and achieve future growth in 2022 and beyond.”
March 11, 2022
Strong Cigar Sales Boost STG’s Results

Photo: STG
Scandinavian Tobacco Group (STG) reported net sales of DKK8.23 billion ($1.21 billion) in 2021, up 4.5 percent organically from the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) before special items grew by 18.4 percent organically to DKK2.23 billion, with free cash flow before acquisitions stable at DKK1.39 billion.
Net sales for the fourth quarter were DKK2.01 billion, reflecting 1.8 percent organic growth over the comparable quarter in 2020. EBITDA before special items was DKK474 million, up from DKK397 million in the previous year’s quarter.
The fourth-quarter results were driven by continued strong demand for handmade cigars in the U.S., price increases across most product categories and continued cost efficiencies. The integration of Agio Cigars approaches completion, according to STG.
“We deliver particularly strong financial results for 2021 based on a strong demand for handmade cigars in the U.S., Agio synergies and a favorable market mix,” said STG CEO Niels Frederiksen in a statement. “During the year, we showed good progress on our strategy ‘Rolling Toward 2025’ across the business and edged closer to our vision of becoming the undisputed global leader in cigars.”
STG expects organic EBITDA growth in 2022 to be in the range of 0 percent to 6 percent.
At the annual general meeting on March 31, 2022, the board of directors will propose an increase in the ordinary dividend of 15 percent to DKK7.50 per share. The board has also approved a new share buyback program with a value of up to DKK700 million to adjust the capital structure and meet obligations relating to the group’s share-based incentive program.
March 9, 2022
Record Tobacco Income Boosts Vector’s Results

Photo: Wirestock
Vector Group reported consolidated revenues of $1.22 billion in 2021, down 1 percent from the previous year. Reported net income of $219.5 million was up $126.5 million over 2020. Adjusted net income from continuing operations was $174.8 million, up $44.9 million compared to the prior year period. Reported operating income increased $26 million to $320.4 million while tobacco segment operating income was $360.3 million, up 13 percent over 2020.
For the fourth quarter of 2021, Vector Group reported consolidated revenues of $313.7 million, up 9 percent compared to the prior year period. Reported net income was $45.3 million, up $13.1 million. Adjusted net income from continuing operations totaled $41.4 million, $19.3 million higher than in 2020. Reported operating income of $68.6 million was down $5.5 million compared to the prior year.
“Vector Group had another outstanding quarter, achieving all-time high annual tobacco segment operating income,” said Howard M. Lorber, president and CEO of Vector Group, in a statement.
“We are excited by the continued strong performance of our tobacco business, which validates our market strategy and reflects the competitive advantages we have in the highly attractive deep discount segment. With the spin-off of Douglas Elliman complete, we are laser focused on continuing to capitalize on opportunities in the growing deep discount segment while leveraging our value-focused brand portfolio and broad national distribution to meet evolving market demands.”
March 2, 2022
22nd Century Reports Results

Photo: MIND AND I
22nd Century Group reported net sales of $30.9 million for 2021, up 10.1 percent from 2020. The increase was due to an increase in contract manufacturing sales. Gross profit for 2021 was $2.1 million compared to $1.4 million in the prior year. Gross margin in 2021 increased to 6.7 percent from 5.1 percent in the prior year.
Net sales for the fourth quarter of 2021 were $8 million, an increase of 8.9 percent over the prior year period. The increase was due to an increase in contract manufacturing sales. Gross profit for the fourth quarter of 2021 was $387,000 compared to $588,000 in the prior year period due to the favorable effect of a large customer order that benefitted the previous year’s fourth quarter.
“The past several months were incredible as 22nd Century transforms from a pure science and contract manufacturing company into a company selling branded VLN cigarettes, licensing valuable biotechnology IP and supplying highly specialized plant lines in large and dynamic global end markets,” said James A. Mish, CEO of 22nd Century Group, in a statement.
“We secured our highly anticipated FDA MRTP [modified-risk tobacco product] designation on Dec. 23, and immediately moved to launch our VLN pilot program by the end of March. The first VLN cigarettes packaged with the FDA’s added claim of ‘Helps You Smoke Less’ rolled off our manufacturing lines in late January.
“Additionally, we have finalized our point-of-sale materials to educate adult smokers about how to use VLN to change their relationship with highly addictive nicotine cigarettes, and we have worked alongside Circle K to prepare for our first launch in more than 150 metro Chicago stores before rolling VLN out nationwide. Our mission is to get this product as quickly as possible into the hands of adult smokers, 70 percent of whom want to quit and are looking for new and innovative products to help them smoke less.”
On Feb. 28, 22nd Century announced its VLN cigarettes would make their international debut in South Korea.
March 1, 2022
SWM Reports Full-Year and Quarterly Results

Photo: SWM
Schweitzer-Mauduit International reported sales of $1.44 billion in 2021, up 4 percent on an organic basis. GAAP operating profit was $83.3 million, down $45.5 million, and included $38.9 million of transaction and integration costs and incremental purchase accounting expenses from the Scapa acquisition that closed on April 15, 2021. Adjusted operating profit was $158.8 million, down $12.8 million.
The company’s engineered papers business recorded sales of $509.3 million for the year, down 4 percent, driven by a 2 percent volume decline and unfavorable price/mix of 4 percent, which were partially offset by a 3 percent currency benefit related to the euro.
The volume decline was primarily attributable to lower tobacco paper volumes, particularly low-ignition propensity (LIP) papers, as customers adjusted inventories lower after building significant safety stocks in mid-2020. The lower LIP volume was also a significant contributor to the negative mix effect. Rapid growth throughout the year in heat-not-burn sales was a positive offset within the tobacco business, while nontobacco paper volumes also increased.
In the fourth quarter of 2021, the engineered papers segment business reported sales of $134.8 million, up 3 percent, driven by a 5 percent volume increase, unfavorable price/mix of 1 percent and 1 percent of negative currency related to the euro. Volumes benefited from gains in tobacco papers, continued rapid growth in heat-not-burn products, and an increase in nontobacco papers.
“We enter 2022 confident that we will deliver strong growth in sales and profitability, said SWM CEO Jeff Kramer in a statement. “2021 top line performance met our growth expectations, but profits were impacted by sharp input cost increases and supply chain challenges, which we expect to moderate as this year progresses.
“Early signs show more positive fundamentals on several fronts. We have successfully increased prices across the business and see moderation on some key input costs while we continue to progress against other supply chain hurdles.”
February 24, 2022
Turning Point Brands Reflects on Strong 2021

Yavor Efremov (Photo: TPB)
Turning Point Brands (TPB) announced financial results for the fourth quarter and full year ended Dec. 31, 2021.
Net sales were comparable with the fourth quarter of 2020 at $105.3 million despite a 22 percent decline in sales of new-generation (“NewGen”) products.
Gross profit decreased 3.8 percent to $50.3 million compared to the fourth quarter of 2020. Net income decreased 20.3 percent to $11.5 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) decreased 7.6 percent to $23.8 million.
Full-year 2021 net sales increased 10 percent to $445.5 million. Gross profit increased 14.7 percent to $217.8 million. Net income increased 36.3 percent to $52.1 million. Adjusted EBITDA increased 19.8 percent to $108.1 million.
“Our fourth-quarter results capped off another strong year of performance for Turning Point Brands, with EBITDA growing 20 percent for the fiscal year. Sales for the fourth quarter finished above our previous guidance and in line with the previous year despite a 22 percent decline in NewGen sales, which fell within our previous guidance,” said TPB President and CEO Yavor Efremov, in a statement.
“Zig-Zag delivered another quarter of double-digit growth against a tough comparable period while Stoker’s reaccelerated to high single-digit growth driven by mid-teens growth in the moist snuff tobacco business. Additionally, NewGen managed through a challenging quarter clouded by the evolving regulatory landscape while maintaining long-term upside potential in a post-PMTA [premarket tobacco product application] environment.
“Turning to capital deployment, we increased our share repurchase activity during the quarter and continue to maintain a strong balance sheet. Going forward, I am eager about the opportunity to work with a great organization, continue our momentum and invest further to deliver future organic and inorganic growth.”
In related news, TPB entered into an agreement with Flamagas, a lighter manufacturer, for exclusive distribution of Clipper lighters in the United States and Canada.
“Given Flamagas’ global reach and renowned product portfolio, this partnership represents a tremendous opportunity to expand Clipper’s reach in the United States and Canada,” said TPB Senior Vice President ff Sales And Marketing Frank Vignone in a statement.
February 22, 2022
Kaival Brands Reports ‘Challenging’ Year
Niraj Patel (Photo: Kaival Brands
Kaival Brands reported revenues of approximately $58.8 million in the fiscal year that ended on Oct. 31, 2021. The company’s performance was worse than 2020, primarily due to the U.S. Food and Drug Administration’s marketing denial orders, which prevented Kaival Brands from marketing the nontobacco flavored Bidi Sticks in the United States toward the end of fiscal year 2021.
In addition, the company faced increased competition, which it attributes to the lack of enforcement by federal and state authorities against subpar and low-priced vaping products that continued to enter the market illegally without FDA authorization.
Net loss for fiscal year 2021 was approximately $9 million compared to net income of approximately $3.8 million for fiscal year 2020. The decrease in net income year-over-year was largely due to the decrease in revenues and the increase in operating expenses.
“Fiscal year 2021 was a very challenging year, especially because of FDA’s marketing denial order, or MDO, for Bidi Vapor’s nontobacco flavored Bidi Stick ENDS [electronic nicotine-delivery system], which caused irreparable harm to both Bidi Vapor and Kaival Brands,” said Kaival Brands’ CEO Niraj Patel in a statement.
“However, we were pleased that the court ultimately agreed to stay the MDO and that we were able to make key strategic decisions to stay in business and continue maturation of the company in 2021, including uplisting to Nasdaq and completing our first underwritten public offering.”

February 16, 2022