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Dec 31, 2024
Turning Point Brands Q4 2024 Earnings Report
Turning Point Brands reported strong revenue growth in Q4 2024, with increased sales in both Zig-Zag and Stoker’s product segments, despite a decline in net income due to one-time discontinued operations losses.
Key Takeaways
Turning Point Brands delivered strong Q4 2024 results, with total revenue increasing by 12.8% year-over-year to $93.67 million. Zig-Zag product sales grew modestly, while Stoker’s segment saw significant gains, driven by increased volume and favorable pricing. Net income declined due to a one-time $7.3 million loss from discontinued operations, but adjusted net income rose by 12.7% to $18 million. Adjusted EBITDA increased by 5.3% to $26.2 million, reflecting continued operational efficiency and growth in key product lines.
Q4 2024 revenue increased 12.8% year-over-year to $93.67 million.
Net income declined 76.1% to $2.4 million due to discontinued operations losses.
Stoker’s Products segment net sales grew 25.8%, while Zig-Zag net sales rose 1.8%.
Adjusted EBITDA increased by 5.3% to $26.2 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 expects strong performance in 2025, with projected adjusted EBITDA between $108 million and $113 million. The company also anticipates Modern Oral product sales reaching $60 million to $80 million, driven by continued expansion and product adoption.
Positive Outlook
- Projected adjusted EBITDA growth to $108-$113 million for FY 2025.
- Modern Oral product sales expected to reach $60-$80 million.
- Strong momentum in Stoker’s MST and Modern Oral segments.
- Improved operational efficiencies leading to higher margins.
- Successful launch of new product innovations in key markets.
Challenges Ahead
- Potential regulatory challenges impacting Modern Oral product approvals.
- Continued pressure on Zig-Zag gross margins due to product mix changes.
- Macroeconomic uncertainties affecting consumer demand.
- Rising SG&A expenses due to restructuring and compliance costs.
- Increased competition in the alternative tobacco and smoking accessories markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income