Turning Point Brands Announces Strong Third Quarter 2024 Results

Louisville, KY – Turning Point Brands, Inc. (NYSE: TPB) has reported its financial results for the third quarter ending September 30, 2024. The company posted a solid performance with adjusted EBITDA reaching $27.2 million, marking an 11% increase from the previous year. Net sales for Zig-Zag and Stoker’s Products showed significant growth, with an 8% increase in Q3 2024.

Graham Purdy, President and CEO of Turning Point Brands, expressed satisfaction with the quarterly results, emphasizing the company’s belief in sustainable growth for Zig-Zag products. Stoker’s MST also demonstrated positive performance, with notable growth in market share.

In the Zig-Zag Products segment, net sales rose by 5.5%, reaching $49.3 million. The segment’s gross profit increased by 2.2% to $27.3 million, despite a slight decline in gross margin due to product mix.

Stoker’s Products segment reported a 12.1% increase in net sales, reaching $41.4 million. Factors contributing to this growth included low single-digit growth from MST and triple-digit growth from FRE products.

Creative Distribution Solutions (CDS), which accounted for 14% of total net sales, reported net sales of $14.9 million, with a gross profit of $3.3 million.

The company’s guidance for full-year 2024 adjusted EBITDA has been revised upwards to a range of $101 to $103 million, excluding CDS.

During the quarter, Turning Point Brands repurchased 26,978 shares of common stock at a cost of $1.1 million. The Board of Directors also increased the company’s share repurchase authorization by $77.9 million, totaling $100.0 million.

An earnings conference call to review the financial results is scheduled for 10:00 a.m. Eastern on Thursday, November 7, 2024.

Turning Point Brands provided additional financial information in non-GAAP measures, including adjusted EBITDA, adjusted net income, adjusted diluted EPS, and adjusted operating income. These metrics are used for trend analyses and performance evaluations.

The Company’s financial statements for the quarter can be found in the SEC filings. For further details, please refer to the company’s official website.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Turning Point Brands’s 8K filing here.

About Turning Point Brands

Turning Point Brands, Inc, together with its subsidiaries, manufactures, markets, and distributes branded consumer products. The company operates through three segments: Zig-Zag Products, Stoker’s Products, and Creative Distribution Solutions. Zig-Zag Products segment markets and distributes rolling papers, tubes, finished cigars, make-your-own cigar wraps, and related products, as well as lighters and other accessories under the Zig-Zag brand.