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Dec 31, 2024
22nd Century Group Q4 2024 Earnings Report
22nd Century Group reported its Q4 2024 results with declining revenues and an increased net loss compared to the previous quarter.
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
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.