Tag: Liggett Group

  • Vector Posts Record Quarterly Revenues

    Vector Posts Record Quarterly Revenues

    Photo: Phongphan Supphakank

    Vector Group reported consolidated revenues of $378 million for the third quarter of 2022, up 26.6 percent over the prior year period.

    Tobacco segment unit volume increased 30.1 percent compared to the comparable 2021 period. Liggett’s wholesale and retail market share increased to 5.7 percent each, compared with 3.9 percent and 4.2 percent, respectively, in the prior year period.

    Reported net income declined to $38.9 million from $48.9 million.

    Reported net income from continuing operations was $38.9 million, up from $29.9 million in the prior year period. Adjusted net income from continuing operations was $37.6 million compared to $33.9 million in the prior year period.

    Reported operating income increased by $1.9 million to $83.9 million.

    Tobacco segment operating income was down 4 percent to $88.1 million, primarily as a result of the company’s investment in its Montego brand.

    “Vector Group delivered record tobacco quarterly revenues in the third quarter as we continued to capitalize on favorable market opportunities to substantially increase value and market share,” said Vector Group President and CEO Howard M. Lorber in a statement.

    “Driven by the significant growth of our price-fighting Montego brand, Liggett’s wholesale market share in the third quarter was 5.7 percent, which is its highest market share since 1984. We have begun to gradually shift our growth strategy of Montego, which is now the second-largest discount brand in the United States, from volume-based to profit-based. As we move forward, we will continue to focus on optimizing long-term profit through the effective management of volume, pricing and market share growth.”

  • Vector Group Reports Financial Results

    Vector Group Reports Financial Results

    Photo: Steve Buissinne from Pixabay

    Vector Group reported revenues of $554.6 million in the fourth quarter of 2020 compared to revenues of $439.6 million in the fourth quarter of 2019. The company recorded operating income of $87.3 million in the fourth quarter of 2020 compared to operating income of $45.6 million in the fourth quarter of 2019. Net income attributed to Vector Group for the fourth quarter of 2020 was $32.3 million compared to net income of $10.7 million in the fourth quarter of 2019.

    For the year ended Dec. 31, 2020, revenues were $2 billion compared to revenues of $1.9 billion for the year ended Dec. 31, 2019. The company recorded operating income of $245.1 million for 2020 compared to operating income of $231.1 million for 2019. Net income attributed to Vector Group for 2020 was $92.9 million compared to net income of $101 million for 2019.

    For the fourth quarter of 2020, the tobacco segment had revenues of $286.1 million compared to $260.3 million for the fourth quarter of 2019. For the full year of 2020, the tobacco segment had revenues of $1.21 billion compared to $1.12 billion for 2019.

    Operating income from the tobacco segment was $79.7 million and $319.5 million for the three months and the full year 2020, respectively, compared to $60 million and $261.6 million for the three months and year ended Dec. 31, 2019, respectively.

    “Vector Group’s strong fourth quarter results reflect our ongoing commitment to creating long-term stockholder value,” said Howard M. Lorber, president and CEO of Vector Group, in a statement. “We are pleased that both our tobacco and real estate segments reported significant increases in operating income this quarter, including record operating income at Liggett, which is well into the income growth phase of its Eagle 20’s brand strategy.”

  • Discounters Contest Minimum Price

    Discounters Contest Minimum Price

    Photo: Tobacco Reporter archive

    Liggett Group, Vector Tobacco and Xcaliber International, together with a Colorado citizen and cigarette smoker, have filed a motion for a preliminary injunction against the State of Colorado in a United States Federal Court. The motion seeks to enjoin Colorado from enforcing the recently enacted Colorado minimum cigarette price requirement, which would raise retail cigarette prices for Colorado consumers to premium brand levels.

    The motion alleges that the requirement was inserted into a cigarette tax increase bill solely to secure support for the bill from Philip Morris, the largest U.S. seller of premium cigarettes. The motion also alleges that the minimum price requirement violates the Commerce Clause of the U.S. Constitution by favoring Colorado retailers’ in-state economic interests over the interests of out-of-state discount manufacturers.

    Further, the complaint alleges that the minimum price requirement was not properly disclosed to Colorado voters who approved the bill on Election Day. “Voters believed that the tax increases would benefit education and other public purposes, when in fact all of the benefit of the minimum price provision will go to retailers, Philip Morris and other premium cigarette manufacturers, and none to the State of Colorado,” the plaintiffs wrote in a statement.