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Dec 31, 2021
22nd Century Group Q4 2021 Earnings Report
22nd Century Group reported an increase in net sales and a higher operating loss for Q4 2021.
Key Takeaways
22nd Century Group reported an 8.9% increase in net sales for the fourth quarter of 2021, driven by increased contract manufacturing sales. However, the company's operating loss widened due to increased sales, general and administrative expenses, and a reduction in gross profit.
Secured FDA MRTP Authorization for VLN® King and VLN® Menthol King Reduced Nicotine Content Cigarettes.
Advancing to U.S. Pilot Market Launch in Chicago.
Announced Circle K as First VLN® Retail Trade Partner.
Commenced Hemp/Cannabis Revenue in the Fourth Quarter of 2021.
Forward Guidance
The company is focused on scaling its business across tobacco, hemp/cannabis, and hops franchises.
Positive Outlook
- Expanding manufacturing operations to increase cigarette market share.
- Readying for the largest VLN tobacco growing year to support expansion.
- Preparing plant lines for an expanded hemp/cannabis growing program.
- Targeting monetization of hop plant varieties and IP.
- Advancing discussions with multiple hops growers and consumer product partners.
Challenges Ahead
- Operating loss increased due to higher SG&A and reduced gross profit.
- Net loss increased due to a non-cash unrealized loss on investments.
- Increased sales, general and administrative expenses.
- The company expects R&D investments to grow in future quarters.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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