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Jun 30, 2022

Turning Point Brands Q2 2022 Earnings Report

Turning Point Brands' Q2 2022 results reflected resilience in Zig-Zag and Stoker's segments amidst a challenging macro environment, while NewGen segment faced regulatory headwinds.

Key Takeaways

Turning Point Brands reported a decrease in net sales by 16.1% to $102.9 million, with net income decreasing by 64.7% to $5.4 million. The Zig-Zag and Stoker's segments showed resilience, while the NewGen segment experienced a decline. The company is adjusting its outlook for the year due to the uncertain macro environment.

Net sales decreased by 16.1% to $102.9 million, while Zig-Zag and Stoker’s combined net sales decreased 0.9%.

Net income decreased 64.7% to $5.4 million, with diluted EPS at $0.30 and Adjusted Diluted EPS at $0.70.

Stoker’s MST experienced accelerated share gains driven by consumer trade-down to the value category.

Company is adjusting its outlook for the year due to the uncertain macro environment and slower than expected improvement in NewGen Products segment.

Total Revenue
$103M
Previous year: $123M
-16.1%
EPS
$0.7
Previous year: $0.84
-16.7%
Smokeless Volume Growth
-6.1%
Previous year: 2.4%
-354.2%
Smokeless Price/Mix Growth
6.8%
Previous year: 5.9%
+15.3%
Gross Profit
$51.5M
Previous year: $60M
-14.2%
Cash and Equivalents
$107M
Previous year: $157M
-31.8%
Free Cash Flow
-$8.8M
Previous year: $11.8M
-174.3%
Total Assets
$604M
Previous year: $629M
-4.0%

Turning Point Brands

Turning Point Brands

Turning Point Brands Revenue by Segment

Forward Guidance

Due to the uncertain macro environment and slower than expected improvement in our NewGen Products segment, the Company now expects the following full-year 2022 results

Positive Outlook

  • Zig-Zag Products sales of $193 to $200 million
  • Stoker’s Products sales of $127 to $133 million
  • Consolidated adjusted EBITDA of $97 to $103 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income