22nd Century Group Q3 2024 Earnings Report
Key Takeaways
22nd Century Group reported a decrease in net revenues to $5.9 million, a gross profit loss of $(0.6) million, an increase in operating loss to $3.4 million, and an increase in net loss to $3.6 million for the third quarter of 2024. The company remains focused on achieving EBITDA breakeven results in the first quarter of 2025 and is moving forward with plans to launch additional products, including VLN® SKUs within key customer brand families.
Net revenues decreased to $5.9 million compared to $7.9 million in the previous quarter.
Gross profit was $(0.6) million, a decrease from $0.6 million in the previous quarter.
Operating loss increased to $3.4 million compared to $2.0 million in the previous quarter.
The company remains focused on EBITDA breakeven results in the first quarter of 2025.
22nd Century Group
22nd Century Group
Forward Guidance
22nd Century Group is focused on achieving EBITDA breakeven results in the first quarter of 2025 and plans to launch additional products, including VLN® SKUs within key customer brand families, to expand the distribution of reduced nicotine content cigarettes.
Positive Outlook
- Focus on EBITDA breakeven results in Q1 2025.
- Plans to launch additional products, including VLN® SKUs within key customer brand families.
- Changes in core CMO business expected to drive revenue growth.
- Expanding distribution of reduced nicotine content cigarettes.
- Synchronicity between the CMO business and VLN® is progressing as planned.
Challenges Ahead
- Third quarter results reflect operational adjustments intended to address underperforming results in the filtered cigar business.
- Filtered cigars net revenues decreased.
- VLN® cigarette net revenues were negligible.
- Sell-through of VLN® products has not yet materialized.
- Cigarette carton volumes declined 22% due to prior year comparable period stocking orders.