Turning Point Brands, Inc. (NYSE:TPB) announced financial results for the fourth quarter and full year ended December 31, 2021.
Q4 2021 vs. Q4 2020 Financial Highlights
- Net sales were comparable with Q4 2020 at $105.3 million despite a 22 percent decline in NewGen sales.
- Gross profit decreased 3.8% to $50.3 million.
- Net income decreased 20.3% to $11.5 million.
- Adjusted EBITDA decreased 7.6% to $23.8 million.
- Diluted EPS of $0.57 and Adjusted Diluted EPS of $0.66 as compared to $0.68 and $0.77 in the same period one year ago, respectively.
- Zig-Zag Products net sales increased 13.6% to $46.1 million.
- Zig-Zag Products segment gross profit increased 4.7% to $26.4 million
- Net sales of Stoker's Products increased 8.3% to $31.2 million on double-digit growth of MST.
- The Stoker's Products segment gross profit increased 10.4% to $16.9 million.
- Net sales of NewGen Products decreased 22% to $28 million.
- NewGen Products gross profit decreased 40.6% to $7 million.
FY 2021 vs. FY 2020 Financial Highlights
- Net sales increased 10% to $445.5 million
- Gross profit increased 14.7% to $217.8 million
- Net income increased 36.3% to $52.1 million
- Adjusted EBITDA increased 19.8% to $108.1 million.
- Diluted EPS of $2.52 and Adjusted Diluted EPS of $3.03 as compared to $1.85 and $2.60 in the same period one year ago, respectively.
- Zig-Zag Products net sales increased increased 32.9% to $176.5 million.
- Zig-Zag Products segment gross profit increased 31.2% to $102.7 million.
- Net sales of Stoker's Products increased 7.3% to $124.3 million on double-digit growth of MST.
- The Stoker's Products segment gross profit increased 10.2% to $68.1 million.
- Net sales of NewGen Products decreased 7.5% to $144.7 million.
- NewGen Products gross profit decreased 5.9% to $4 million.
"Our fourth quarter results capped off another strong year of performance for Turning Point Brands with EBITDA growing 20 percent for the fiscal year." Yavor Efremov, president and CEO of Turning Point Brands, said. "Paper cones and Zig-Zag's e-commerce business continue to be strong drivers of growth in our U.S. papers business.”
2022 Outlook
The company projects the following for 2022:
- Zig-Zag Products sales of $193 to $203 million.
- Stoker's Products sales of $127 to $134 million.
Flamagas Deal
Simultaniously, Turning Point Brands revelaed that it has entered into an agreement with Flamagas, a renowned lighter manufacturer, for exclusive distribution of CLIPPER lighters in the United States and Canada.
CLIPPER is currently available in several leading retail chains with growing presence in additional retail outlets, dispensaries, smoke shops and headshops.
Its products are grounded in over 60 years of manufacturing experience and continuous investment in producing the safest premium lighters made by Flamagas.
“Given Flamagas' global reach and renowned product portfolio, this partnership represents a tremendous opportunity to expand CLIPPER's reach in the United States and Canada," Frank Vignone, senior vice president of sales and marketing at Turning Point Brands.
Photo: Courtesy of Markus Winkler on Unsplash
