7/14/2023 0 Comments Zig zag papers![]() $0.1 million of ERP / CRM duplicative system costs compared to $0.3 million of ERP / CRP scoping expenses in the previous year The first quarter SG&A included the following notable items: Performance Measures in the First Quarterįirst quarter consolidated selling, general and administrative (“SG&A”) expenses were $30.8 million compared to $32.6 million in the first quarter of 2022. “Stoker’s saw another quarter of solid performance with strong market share gains in both the MST and loose-leaf chewing tobacco categories as its value proposition continues to resonate with consumers,” continued Purdy. Gross margin expanded 200 basis points to 57.8% due to MST pricing gains. For the first quarter, total Stoker’s Products segment volume increased 0.3%, while price / mix increased 5.9%.įor the quarter, the Stoker’s Products segment gross profit increased 10.1% to $19.5 million. Stoker’s Products Segment (33% of total net sales in the quarter)įor the first quarter, Stoker’s Products net sales increased 6.2% to $33.7 million on high single-digit growth of MST and low-single digit growth of loose-leaf chewing tobacco. “The acceptance of CLIPPER lighters within the trade remains encouraging and sets up well for increased penetration going forward.” Our e-commerce business had another quarter of double-digit growth as we continue to build our presence in the alternative channel,” said Purdy. “Zig-Zag papers and wraps demonstrated solid results in-light of planned inventory reduction with certain customers. rolling paper and wraps products and contribution of CLIPPER lighters which operates at lower gross profit margins. Gross margin declined 420 basis points to 53.5% driven primarily by product mix including the decline of higher margin U.S. For the first quarter, total Zig-Zag Products segment volume decreased 8.6%, while price / mix increased 0.3%.įor the quarter, the Zig-Zag Products segment gross profit decreased 15.0% to $22.4 million. rolling papers and wraps businesses which were impacted by reduction of trade inventory during the quarter. This was offset by anticipated declines in the U.S. TPB’s Canadian and other smoking accessories businesses saw strong growth during the quarter. Zig-Zag Products Segment (42% of total net sales in the quarter)įor the first quarter, Zig-Zag Products net sales decreased 8.3% to $41.9 million. We are currently maintaining our annual guidance as we focus on executing against our plan for the balance of the year.” We opportunistically purchased another $13.9 million in aggregate principal amount of our convertible notes during the first quarter while maintaining a strong cash balance. Stoker’s had a solid quarter of performance as the value proposition of Stoker’s MST and looseleaf led to another quarter of market share gains. With the adjustment in trade inventory, Zig-Zag is now well-positioned to demonstrate growth for the balance of the year. The Zig-Zag segment had an anticipated inventory reduction with certain wholesale customers but saw strong performance from the alternative channel and the roll-out of CLIPPER lighters. Graham Purdy, President and CEO, commented: “We are encouraged by our first quarter operating results which fell within our expectations. Net income decreased 30.9% to $7.6 millionĪdjusted net income decreased 18.1% to $11.9 million (see Schedule B for a reconciliation to net income)Īdjusted EBITDA decreased 17.7% to $20.8 million (see Schedule A for a reconciliation to net income)ĭiluted EPS of $0.41 and Adjusted Diluted EPS of $0.62 compared to $0.55 and $0.71 in the same period one year ago, respectively (see Schedule B for a reconciliation to Diluted EPS) Gross profit decreased 6.1% to $48.6 million Stoker’s Products net sales increased by 6.2%Ĭreative Distribution Solutions net sales increased by 8.0% Zig-Zag Products net sales decreased by 8.3% due to anticipated reduction of trade inventory during the quarter Total consolidated net sales increased 0.1% to $101.0 million (“TPB” or “the Company”) (NYSE: TPB), a manufacturer, marketer and distributor of branded consumer products, including alternative smoking accessories and consumables with active ingredients, announced today financial results for the first quarter ended March 31, 2023. LOUISVILLE, Ky.-( BUSINESS WIRE)- Turning Point Brands, Inc.
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