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Jun 30, 2021

Turning Point Brands Q2 2021 Earnings Report

Turning Point Brands demonstrated positive growth momentum, led by core market segments and strategic initiatives.

Key Takeaways

Turning Point Brands reported a strong second quarter with net sales increasing by 16.8% to $122.6 million and net income increasing by 49.2% to $15.4 million. The company's performance was driven by exceptional growth in the Zig-Zag segment and solid results from the Stoker's segment. TPB also increased its full-year guidance for net sales and adjusted EBITDA.

Net sales increased 16.8 percent to $122.6 million.

Gross profit increased 25.1 percent to $60.0 million.

Net income increased 49.2 percent to $15.4 million.

Adjusted EBITDA increased 31.7 percent to $30 million.

Total Revenue
$123M
Previous year: $105M
+16.8%
EPS
$0.84
Previous year: $0.71
+18.3%
Smokeless Volume Growth
2.4%
Previous year: 13.9%
-82.7%
Smokeless Price/Mix Growth
5.9%
Previous year: 3.8%
+55.3%
Gross Profit
$60M
Previous year: $48.1M
+24.7%
Cash and Equivalents
$157M
Previous year: $64.2M
+145.3%
Free Cash Flow
$11.8M
Previous year: $1.73M
+585.5%
Total Assets
$629M
Previous year: $467M
+34.7%

Turning Point Brands

Turning Point Brands

Turning Point Brands Revenue by Segment

Forward Guidance

TPB projects net sales of $447 to $462 million and Adjusted EBITDA of $108 to $113 million for 2021.

Positive Outlook

  • Strong double-digit sales growth for Zig-Zag Products
  • High single-digit sales growth for Stoker’s Products
  • Flat sales growth for NewGen Products
  • Low single-digit declines for vape distribution
  • Expected growth in Nu-X

Revenue & Expenses

Visualization of income flow from segment revenue to net income