Mar 31, 2022

22nd Century Group Q1 2022 Earnings Report

Announced first quarter 2022 financial results, highlighted by a 33% increase in net sales year-over-year and the launch of VLN® pilot program in Chicago.

Key Takeaways

22nd Century Group reported a 33% increase in net sales for the first quarter of 2022, reaching $9.0 million. The company launched its VLN® pilot program in Chicago with Circle K and began VLN® shipments to South Korea for its first international launch.

Launched VLN® Pilot Program in Chicago with Circle K as First Retail Trade Partner.

Began VLN® Shipments to South Korea for First International Launch.

FDA’s Proposed Menthol Ban Could Leave VLN® Menthol King as the Only Menthol Cigarette on the Market.

Achieved Breakthrough in Hemp/Cannabis Plant Transformation Technology.

Total Revenue
$9.05M
Previous year: $6.8M
+33.0%
EPS
-$12
Previous year: -$7.2
+66.7%
Gross Profit
$460K
Previous year: $647K
-28.9%
Cash and Equivalents
$1.58M
Previous year: $30.9M
-94.9%
Free Cash Flow
-$8.19M
Previous year: -$4.01M
+104.1%
Total Assets
$66.5M
Previous year: $59.7M
+11.4%

22nd Century Group

22nd Century Group

Forward Guidance

The company is focused on expanding VLN® marketing and distribution, securing regulatory clearances, and pursuing partnerships for VLN® tobacco and IP across multiple countries.

Positive Outlook

  • Continuing to explore launch opportunities in additional markets in Asia and Europe with limited regulatory barriers while also leveraging VLN®’s MRTP authorization from FDA toward seeking approval in markets with higher regulatory barriers.
  • 22nd Century Group continued its support of FDA’s proposed ban on menthol as a characterizing flavor in conventional nicotine cigarettes.
  • FDA’s proposed menthol cigarette ban could leave VLN® Menthol King as the only combustible menthol cigarette on the market, providing a critical off-ramp to help current menthol smokers to smoke less.
  • Completing delivery of a purchase order for 3 million additional variable nicotine research cigarettes, including menthol, for use in studies underpinning FDA’s proposed menthol ban and reduced nicotine content proposals.
  • Contracted the largest VLN® tobacco planting to date to support expansion in both the U.S. and international markets.