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Sep 30, 2021
Turning Point Brands Q3 2021 Earnings Report
Turning Point Brands' Q3 2021 performance was within expectations, with core business sales growth of 11% despite prior year benefits.
Key Takeaways
Turning Point Brands reported a 5.5% increase in net sales to $109.9 million and a 49.3% increase in net income to $13.4 million for the third quarter of 2021. The company's Zig-Zag and Stoker's segments showed growth, while the NewGen segment faced challenges due to regulatory uncertainty. TPB updated its 2021 guidance and increased its share repurchase authorization.
Net sales increased by 5.5 percent to $109.9 million.
Gross profit increased by 12.3 percent to $54.3 million.
Net income increased by 49.3 percent to $13.4 million.
Adjusted EBITDA increased by 9.9 percent to $26.3 million.
Turning Point Brands
Turning Point Brands
Turning Point Brands Revenue by Segment
Revenue by Segment
Stoker's Products Sales Revenue
CapyFin.comZig-Zag Products Sales Revenue
CapyFin.com Forward Guidance
Turning Point Brands revised its 2021 annual guidance due to evolving market dynamics driven by the FDA regulatory environment, further implementation of the PACT Act, and supply chain-related delays.
Positive Outlook
- Strong double-digit sales growth for Zig-Zag Products is expected.
- Mid-to-high single-digit sales growth for Stoker’s Products is anticipated.
- The FDA rescinded its previous Market Denial Order for TPB’s Vapor Products.
- All of TPB’s proprietary vapor products will continue to be marketed while they remain under review.
- Increased equity stake in ReCreation Marketing.
Challenges Ahead
- Net sales are expected to be $433 to $443 million, revised down from $447 to $462 million.
- Adjusted EBITDA is projected to be $104 to $108 million, revised down from $108 to $113 million.
- A decline in sales for NewGen Products is expected.
- The vape distribution business is expected to see a double-digit decline.
- Supply chain-related delays are pushing some sales of new products into the first quarter of 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income