Q2 2024 Turning Point Brands Inc Earnings Call Transcript
Key Points
- Turning Point Brands Inc (TPB) reported a 7% increase in adjusted EBITDA, reaching over $27 million for the quarter.
- Zig-Zag's revenue grew by 8% to $50.5 million, driven by strong performance in North American papers, wraps, and cigars.
- Stoker's revenue increased by 19% to $42.7 million, with a notable 14% rise in moist snuff sales.
- The FRE product line saw a significant increase in sales, up 76% sequentially and over 500% year-over-year.
- TPB increased its guidance for 2024 adjusted EBITDA to $98 million to $102 million, reflecting confidence in continued growth.
- Gross margin decreased by 8 basis points to 49.6%, impacted by segment and product mix.
- The alternative channel experienced a 3% decline in the quarter, attributed to timing issues with trade shows and large purchases.
- Zig-Zag's gross margins decreased by 330 basis points to 53%, primarily due to product mix.
- Chewing tobacco sales declined by approximately 1% from the previous year.
- The company faces challenges in measuring alt versus traditional C-store sales due to market convergence.
Thank you for standing by. My name is Sully, and I will be your conference operator today. At this time, I would like to welcome everyone to the Turning Point Brands' second-quarter 2024 conference call. (Operator Instructions) Thank you.
I would now like to turn the call over to Andrew Flynn. Please go ahead.
Good morning, everyone. A short while ago, we issued a press release covering our Q2 results. This release is located in the IR section of our website at www.turningpointbrands.com. During this call, we will discuss our consolidated and segment operating results and provide our perspective on the operating environment and our progress against our strategic plan. As is customary, I direct your attention to the discussion of forward-looking and cautionary statements in today's press release and the risk factors in our filings with the Securities and Exchange Commission. On the call today, we will reference
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