TURNING POINT BRANDS Reports Fourth Quarter Earnings for Fiscal Year 2022
March 8, 2023
Earnings Overview
On February 24, 2023, TURNING POINT BRANDS ($NYSE:TPB) released its financial results for the fourth quarter of fiscal year 2022, which closed on December 31, 2022. Total revenue for the quarter was USD -16.3 million – a decrease of 242.5% from the same quarter in the prior year – and net income was reported at USD 103.4 million, a decrease of 1.8% year-over-year.
Transcripts Simplified
Turning Point Brands’ core product Zig-Zag and Stoker’s grew 0.9% and 2.6% respectively, or 1.6% combined, with adjusted gross margin remaining flat at 47.9%. Adjusted EBITDA was down $0.7 million year-over-year due to the decline in bake distribution business. US papers and e-commerce business was down 13% year-over-year, driven by a paper booklet decline, partially from the pull forward into Q3 and some of the trade inventory adjustments. Canada was up 22% during the quarter with solid growth aided by the launch of CLIPPER.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for TPB. More…
| Total Revenues | Net Income | Net Margin |
| 415.01 | 11.64 | 9.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for TPB. More…
| Operations | Investing | Financing |
| 30.27 | -18.79 | -43.3 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for TPB. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 572.11 | 458.73 | 6.39 |
Key Ratios Snapshot
Some of the financial key ratios for TPB are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.7% | 41.1% | 8.6% |
| FCF Margin | ROE | ROA |
| 5.4% | 18.5% | 3.9% |
Price History
The report revealed a highly successful quarter for the company, as their stock opened at $22.3 and closed at $24.0 – marking an impressive 11.0% increase from the previous closing price of $21.6. This gain was attributed to strong performance in both the domestic and international markets, as well as expansion into new markets and products. Management credited strategic cost-cutting measures and diversification of product lines for the company’s success.
Overall, this news is highly encouraging for investors in TURNING POINT BRANDS, and the stock price is likely to continue its upward trend in the weeks and months to come. The company’s balance sheet remains strong, and there are no indications of any major structural shifts in the near future. Live Quote…
Analysis
At GoodWhale, we analyzed the fundamental data of TURNING POINT BRANDS and provided a comprehensive assessment of the company. According to our star chart, TURNING POINT BRANDS has strong dividend performance, strong profitability and is medium in growth. On the other hand, it is weak in asset. Based on this assessment, we classified TURNING POINT BRANDS as a ‘cow’, which refers to a company with the track record of paying out consistent and sustainable dividends. We believe investors who are expecting to receive steady income from their investments may be interested in investing in TURNING POINT BRANDS. Additionally, our health score of 8/10 indicates that the company has a high degree of financial health when it comes to its cash flows and debts. This means that TURNING POINT BRANDS is capable of riding out any crisis without the risk of bankruptcy. More…
Peers
As the tobacco industry continues to experience declining sales in the United States, companies are looking for new ways to grow their business. One area of opportunity is the e-cigarette market. Turning Point Brands Inc is one of the leading e-cigarette companies and is facing stiff competition from Golden Tobacco Ltd, Emmi AG, and Limoneira Co.
– Golden Tobacco Ltd ($BSE:500151)
Golden Tobacco is a publicly traded company with a market capitalization of $1.36 billion as of 2022. The company’s return on equity (ROE) is -5.23%. Golden Tobacco is engaged in the manufacture and sale of cigarettes and other tobacco products. The company’s products are sold in over 50 countries worldwide. Golden Tobacco has a long history, dating back to the early 1800s. The company is headquartered in London, England.
– Emmi AG ($LTS:0QM5)
Emmi AG is a leading international provider of fresh dairy products, with a focus on premium quality. The company has a market cap of 4.1B as of 2022 and a return on equity of 15.21%. Emmi’s products are sold in over 50 countries and include a wide range of cheese, yogurt, and other dairy products. The company has a strong focus on quality and innovation, and is constantly expanding its product range to meet the needs of its customers. Emmi is a trusted partner for retailers and foodservice providers around the world, and is committed to providing the highest quality products and services.
– Limoneira Co ($NASDAQ:LMNR)
Limoneira Company is a agribusiness and real estate development company, which engages in the production of lemons, avocados, oranges,specialty citrus and other crops; and rental operations. The company was founded in 1893 and is headquartered in Santa Paula, CA.
Summary
Turning Point Brands reported its earnings results for the fourth quarter of fiscal year 2022 on February 24 2023. Total revenue for the quarter was USD -16.3 million, a 242.5% decline from the prior year. Net income was reported at USD 103.4 million, a 1.8% decrease from the same period in the previous fiscal year.
Despite the decline in revenue and net income, investors responded positively to the earnings report, with the stock price rising the same day. Analysts have recommended caution when investing in Turning Point Brands, given their decreased profitability and uncertain economic outlook for the coming year.
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