•
Mar 31, 2023

22nd Century Group Q1 2023 Earnings Report

22nd Century Group reported a net revenue increase of 143% year-over-year, driven by hemp/cannabis sales following the GVB acquisition, and introduced a full-year revenue outlook.

Key Takeaways

22nd Century Group reported a strong first quarter with net revenues of $22.0 million, a 143% increase compared to Q1 2022. The company introduced its first revenue guidance, projecting $105 million to $110 million for 2023. Growth is expected to be driven by VLN® sales, Pinnacle CMO sales, cannabinoid ingredient volumes, and new CDMO+D hemp/cannabis agreements.

Net revenues for Q1 2023 were $22.0 million, up 143% from Q1 2022.

Introduced 2023 revenue outlook of $105 million to $110 million, a 69% to 77% year-over-year increase.

Signed exclusive CDMO plus distribution agreements worth more than $140 million with Cookies and Old Pal.

Delivered record GVB ingredient volumes as dominant supplier in North America.

Total Revenue
$22M
Previous year: $9.05M
+142.8%
EPS
-$19.2
Previous year: -$12
+60.0%
Gross Profit
-$1.18M
Previous year: $460K
-355.9%
Cash and Equivalents
$11M
Previous year: $1.58M
+591.4%
Free Cash Flow
-$19.4M
Previous year: -$8.19M
+137.1%
Total Assets
$124M
Previous year: $66.5M
+86.7%

22nd Century Group

22nd Century Group

Forward Guidance

22nd Century Group anticipates full-year 2023 revenue between $105 million and $110 million, driven by VLN® sales, Pinnacle CMO sales, cannabinoid ingredient volumes, and new CDMO+D hemp/cannabis agreements. The company aims for cash positive operations in 2024.

Positive Outlook

  • Rapid stocking and ramp up of new VLN® customers
  • New Pinnacle CMO sales
  • Continued record cannabinoid ingredient volumes
  • Start-up of CDMO+D hemp/cannabis agreements
  • Full year of GVB sales