Turning Point revenues rise as Zig-Zag dominates top line sales | Where to buy Skittles Moonrock online

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Turning Point Brands, Inc. (NYSE: TPB) announced financial results for the fourth quarter and full year ending December 31, 2024. The company did not publish a standard 10Q and instead opted to publish an investor presentation on its website.

Fourth Quarter

For the fourth quarter, total consolidated net sales increased 12.8% to $93.7 million, just missing the Yahoo Finance average analyst estimate of $94.48 million. Turning Point told investors that Zig-Zag Product Segment net sales increased by 1.8% and Stoker’s Product Segment net sales increased by 25.8%.  The company attributed its success to a solid performance in its U.S. Papers & Wraps business, partially offset by Clipper. Excluding Clipper, Zig-Zag revenue was up 4.1%.

The fourth quarter net income decreased 76.1% to $2.4 million versus $10.1 million in the year-ago period, driven primarily by a one-time loss from discontinued operations (CDS) of $7.3 million. The diluted EPS of $0.13 and Adjusted Diluted EPS of $0.98 compared to $0.53 and $0.82, respectively, in the same period one year ago. This topped the analyst estimate for earnings per share of $0.81.

The discontinued operations referred to a transaction on January 2, 2025, where the company contributed 100% of its interest in South Beach Brands LLC, the subsidiary that owned and operated its former Creative Distribution Solutions reportable segment, to General Wireless Operations, Inc. This gave the company a 49% ownership interest in the joint venture and is presented as discontinued operations.

During the quarter the company launched its nicotine pouch product FRE and said it did not require a leading market share to have a meaningful impact on the bottom line. FRE’s distribution expanded in 2024 with both brick & mortar and digital marketing strategies;and with more recent product launches into lower 3/6 mg nicotine strengths that make up more than two-thirds of the modern oral category.

Full-year results

For the full year of 2024, Turning Point reported total consolidated net sales increased 11.0% to $360.7 million. Zig-Zag net sales increased 6.6% to $192.3 million and Stoker’s net sales increased 16.4%. The company also reported solid growth in cigars that was partially offset by declines in lighter sales.

Net income increased 3.5% to $39.8 million. Diluted EPS was $2.14, and adjusted diluted EPS was $3.49, compared to $2.01 and $2.93, respectively, in the same period one year ago.

CEO Graham Purdy said, “We were pleased with our fourth quarter and full year 2024 results and the momentum we are seeing across the organization. We believe Zig-Zag remains on a sustainable growth trajectory with Stoker’s MST continuing to grow market share. In Modern Oral, combined sales were $11.2 million for the quarter. FRE sales more than quadrupled versus year-ago and grew 26% sequentially, and we are excited by the successful launch of ALP during the quarter.”

Turning Point’s total gross debt at the end of 2024 was $248.6 million. The company ended the quarter with total liquidity of $103.6 million, comprised of $46.2 million in cash and $57.4 million of asset-backed revolving credit facility capacity. Last month, Turning Point issued $300 million of senior secured notes due 2032 and used the money to repay its $250 million of existing senior secured notes due 2026 with no pre-payment penalty. The company said it is comfortable with its liquidity position.