22nd Century Group Q4 2024 Earnings Report
Key Takeaways
In Q4 2024, 22nd Century Group recorded net revenues of $4.02 million, a sequential decline reflecting lower contract manufacturing revenues and VLN® product rebates. The company reported a net loss of $4.25 million and an adjusted EBITDA loss of $3.89 million, highlighting ongoing challenges as they restructure and prepare for product relaunches.
Net revenues in Q4 2024 were $4,020,000, down from $7,357,000 in Q4 2023.
Gross loss for the quarter was $1,254,000, improving from a loss of $7,829,000 in the prior year.
Net loss from continuing operations was $4,246,000, significantly better than the $22,068,000 loss in Q4 2023.
Adjusted EBITDA loss was $3,888,000, showing a slight improvement from $4,363,000 in the prior year.
22nd Century Group
22nd Century Group
22nd Century Group Revenue by Segment
Forward Guidance
22nd Century Group plans to relaunch its VLN® products and expand its contract manufacturing business in 2025, with focus on profitable partnerships and regulatory compliance.
Positive Outlook
- VLN® partner brand shipments expected to begin in Q2 2025.
- Expansion of reduced nicotine product offerings in discussion.
- Signed new five-year expanded license and manufacturing agreement with Smoker Friendly.
- Contract manufacturing business entering 2025 with profitable contracts.
- VLN® products meet FDA’s proposed new nicotine yield standard.
Challenges Ahead
- Revenue decline of 45.4% year-over-year in Q4 2024.
- Continued gross losses in the quarter, though reduced compared to last year.
- Higher operating loss compared to the prior quarter.
- Net debt position of $3.3 million at year-end.
- VLN® revenues negative in Q4 due to rebates and marketing incentives.