22nd Century Group Q3 2022 Earnings Report
Key Takeaways
22nd Century Group reported a significant increase in net sales for Q3 2022, driven by the acquisition of GVB Biopharma and increased contract manufacturing volumes. The company is expanding its VLN® product launch and focusing on key geographies and markets. The company's hemp/cannabis revenue is also growing, with plans to increase gross margin through the startup of a new crude extraction plant and additional certifications.
Net sales increased by 148% to $19.4 million compared to Q3 2021.
VLN® product launch expanded to five states with plans to reach 18 states within twelve months.
GVB Biopharma acquisition contributed to hemp/cannabis revenue, positioning the company as the largest merchant market supplier of CBD in North America.
Company is focused on increasing gross margins and driving market share across its business units.
22nd Century Group
22nd Century Group
Forward Guidance
22nd Century Group anticipates a decrease in cash requirements, reflecting higher sales volume of higher margin contract manufacturing operations (CMO) cigarettes and VLN® products through fiscal 2023, and continued organic growth of GVB’s operations, providing adequate liquidity from the current balance sheet to complete its planned strategic initiatives.
Positive Outlook
- Higher sales volume of higher margin contract manufacturing operations (CMO) cigarettes
- Higher sales volume of VLN® products through fiscal 2023
- Continued organic growth of GVB’s operations
- Adequate liquidity from the current balance sheet
- Planned strategic initiatives