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Jun 30, 2023

22nd Century Group Q2 2023 Earnings Report

22nd Century Group reported a 62% increase in net revenues to $23.4 million for Q2 2023, launched VLN® sales in California, Texas and Florida, delivered record GVB ingredient volumes, and initiated an operating cost reduction program.

Key Takeaways

22nd Century Group's Q2 2023 net revenues increased by 62% to $23.4 million. The company launched VLN® sales in key states, achieved record GVB ingredient volumes, and initiated a cost reduction program targeting $15+ million in annualized savings. They updated their 2023 revenue outlook to $80 million to $90 million.

Net revenues for Q2 2023 increased 62% to $23.4 million.

VLN® sales were launched in California, Texas, and Florida, expanding retail availability.

Record GVB ingredient volumes were delivered, solidifying the company's position as a dominant supplier in North America.

An operating cost reduction program was initiated, targeting $15+ million in annualized savings.

Total Revenue
$23.4M
Previous year: $14.5M
+61.8%
EPS
-$22.4
Previous year: -$14.4
+55.6%
Gross Profit
-$2.35M
Previous year: $892K
-362.9%
Cash and Equivalents
$4.43M
Previous year: $2.67M
+66.2%
Free Cash Flow
-$20.7M
Previous year: -$12.7M
+62.2%
Total Assets
$125M
Previous year: $119M
+4.6%

22nd Century Group

22nd Century Group

Forward Guidance

The Company revised the Company’s 2023 revenue outlook from a range of $105 million to $110 million to a range of $80 million to $90 million to account for changes in the launch timeline and scope of VLN® at certain key chains in 2023, transitioning GVB volumes back to internal production and the operating cost reduction plan.