Category: Financial

  • Imperial Brands Sees Double-Digit Growth in Vapes

    Imperial Brands Sees Double-Digit Growth in Vapes

    Tobacco giant Imperial Brands has reported a dip in revenue despite double-digit growth in its electronic cigarettes division and growth in its traditional tobacco division.

    The company told markets this morning that net revenue from tobacco and “next-generation” products rose 4.6 percent in the year ended September 30.

    Adjusted earnings per share rose 1.09 percent, while reported earnings per share rose 19.1 percent, media reports.

    Overall revenue, which includes duties and peripheral products, fell by 0.2 percent to £32,411 million from £32,475 million in 2023.

    Imperial said its revenue from these products grew 26 percent. However, Imperial’s next-generation revenue remains much lower than for tobacco, with the former representing only around eight percent of tobacco’s net revenue.

    Chief executive Stefan Bomhard said that the tobacco markets remains strong. “In tobacco, investment in our brands and sales force initiatives have delivered aggregate market share gains across our five priority markets, while delivering strong pricing,” he said.

  • Ispire Technology Net Losses Widens to $5.6 Million

    Ispire Technology Net Losses Widens to $5.6 Million

    Credit: Andrii

    Ispire Technology reported revenue of $39.3 million for the first quarter of 2025, down from  $42.9 million in the comparable 2024 quarter. Gross profit increased 13.2 percent to $7.7 million. Net loss was $5.6 million as compared to net loss of $1.3 million in the fiscal first quarter of 2024.

    “Our results from the fiscal first quarter of 2025 reflect our commitment to our growth strategy of becoming the leading innovative vaping technology and precision dosing solutions company worldwide,” said Inspire Co-CEO Michael Wang in a statement.

    “While our financial results were slightly impacted due to the strategic shifts we have made in our U.S. business to focus on high-quality customers and to improve payment terms and gross profit, I am pleased with our team’s overall performance given the challenging macroeconomic environment and look forward to the remainder of fiscal 2025 and the opportunities that lay ahead.”

    According to Wang, Ispire continues to make progress with its point-of-use age gating technology. He also expressed excitement about the recent expansion of Ispire’s global reach through a five-year master distributor agreement with ANDS for the Middle East and North Affrica region and global duty-free markets

    “The results from our fiscal first quarter were in line with our internal projections as we shifted our U.S. strategy while we also had a few delayed shipments which impacted our quarterly results,” said Ispire Chief Financial Officer Jim McCormick.

    “As we head into the remainder of fiscal 2025, we are confident that we are well-positioned to continue delivering value to our shareholders as we advance our mission of becoming a global leading provider of innovative vaping technology and precision dosing solutions.”

  • Sales, Profits See Massive Growth at Turning Point

    Sales, Profits See Massive Growth at Turning Point

    Stoker’s MST continued to grow share while FRE sales more than quadrupled versus last year’s quarter.

    Turning Point Brands (TPB) announced financial results for the third quarter ended Sept. 30, 2024.

    Total consolidated net sales increased 3.8 percent to $105.6 million compared to the third quarter of 2023. Zig-Zag product net sales increased 5.5 percent during the same period. Stoker’s product net sales increased 12.1 percent. Creative Distribution Solutions net sales decreased 17.4 percent.

    Gross profit increased 4 percent to $53.7 million compared to 2023. Net income increased 14.3 percent to $12.4 million. Adjusted net income increased 9.8 percent to $15.9 million. Adjusted EBITDA increased 11.3 percent to $27.2 million.

    “We were pleased by our third-quarter results,” said TPB president and CEO Graham Purdy in a statement. “We believe Zig-Zag is on a sustainable growth trajectory. Stoker’s MST continued to grow market share while FRE sales more than quadrupled versus year-ago and grew 26 percent sequentially as we continue to expand our national footprint.”

  • Haypp Group Reports 23% Growth in 3rd Quarter

    Haypp Group Reports 23% Growth in 3rd Quarter

    Image: Haypp Group

    The Haypp Group reported net sales of SEK944.2 million ($87.98 million) for the third quarter of 2024, up 23 percent over the comparable 2023 period. At constant currency exchange rates, net sales increased by 25 percent.

    Gross profit increased to SEK134.8 million, while adjusted EBIT for the third quarter increased to SEK33.1 million. In terms of volume, the company’s nicotine pouch business grew 42 percent.

    “Haypp Group retained its strong business momentum in the third quarter of 2024 with net sales growth of 23 percent, the highest rate over the last two years driven by strong performances from all three divisions,” said Haypp Groups CEO Gavin O’Dowd in a statement.

    “Moreover, the Insights business continues to develop as brand owners leverage Haypp Group’s unique and powerful consumer data.”

    The company’s third quarter report is here.

  • Vapes, Pouches Boost Atria’s 3rd Quarter Profits

    Vapes, Pouches Boost Atria’s 3rd Quarter Profits

    Credit: JHVE Photo

    Altria Group beat market expectations for third-quarter revenue and profit on Thursday, as robust demand for its nicotine pouches and vaping products helped soften the blow to its combustible cigarettes category.

    Altria’s NJOY vapes and on! nicotine pouches have seen steady demand in the United States, and its menthol-flavored NJOY vape products received authorization from the U.S. Food and Drug Administration for sale.

    “Altria delivered outstanding results in the third quarter,” said Billy Gifford, Altria’s CEO. “The smokeable products segment delivered solid operating companies income growth behind the resilience of Marlboro, and in the oral tobacco products segment, our MST brands continued to drive profitability while on! maintained momentum in the marketplace. We also continued to reward shareholders through a growing dividend and share repurchases while making investments in pursuit of our vision.”

    The company disclosed in July that it had provided data to the FDA regarding the growth of illegal nicotine pouches, which illustrated the early stages of a significant black market for vapes.

    In the third quarter, domestic cigarette shipment volume in the smokeable products segment decreased by 8.6%. In contrast, NJOY devices saw a shipment volume increase of over 100% year-over-year, reaching 1.1 million units, according to a press release.

    Shipment volume for on! nicotine pouches increased by 46% this quarter, while demand for the company’s chewing tobacco products, such as Copenhagen, continued to weaken.

    Shares of the Marlboro maker increased by approximately 1% in premarket trading. They have grown by about 25% this year.

    Altria’s third-quarter adjusted earnings per share of $1.38 topped market expectations of $1.35. The company maintained its annual profit forecast of between $5.07 and $5.15 per share.

    Last week, peer Philip Morris lifted its annual profit target betting on strength in demand for its flagship IQOS heated tobacco device as well as ZYN nicotine pouches.

  • Imperial Brands Boosts Share Returns, Vapes Boom

    Imperial Brands Boosts Share Returns, Vapes Boom

    VV Archives

    Imperial Brands said on Tuesday that the nicotine company would boost shareholder returns to 2.8 billion pounds ($3.7 billion) in its new financial year, as it reported strong growth in vapes and other nicotine alternatives, sending its shares higher.

    The maker of Blu vaping products has benefited from hiking tobacco prices to offset a decline in volumes, as well as rising demand for next generation products (NGPs) including vapes, e-cigarettes and oral pouches.

    The company said it planned to buy back 1.25 billion pounds of shares in the year ending September 2025 and pay out cash dividends of about 1.5 billion pounds. That would be up from 2.4 billion pounds of shareholder payouts in fiscal 2024.

    Imperial forecast 20-30 percent growth in NGP net revenues at constant currencies for fiscal 2024, ahead of some analyst expectations, but said overall results would be in line with guidance, with a stronger pound holding back its adjusted operating profit, according to Reuters.

    Shares of the Bristol-headquartered firm were up 4.2% at 2,239 pence in morning trade, the biggest gain on London’s benchmark FTSE index.

    “Imperial Brands is managing to drive growth not only in its fledgling next generation brands but also in ‘legacy’ tobacco products which still make up the lion’s share of the business,” said Derren Nathan, head of equity research at Hargreaves Lansdown.

  • Vape, Crypto Project PuffPaw Raises $6 Million

    Vape, Crypto Project PuffPaw Raises $6 Million

    Credit: Auremar

    An upcoming vape-to-earn project wants to use token incentives and blockchain-enabled vapes to make nicotine addictions additions go up in smoke.

    Called Puffpaw, the project intends to sell specialty vapes that record their user’s smoking habits on the blockchain. It will reward them in their tokens for gradually reducing their nicotine intake.

    Puffpaw is among a cadre of startups betting on the yet-to-launch Berachain blockchain, a venture capital darling.

    The quit-smoking project itself raised $6 million in seed funding led by Lemniscap Ventures. Lemniscap General Partner Shaishav Todi said the investment is a bet on decentralized physical infrastructure, commonly known as DePIN, according to Coindesk.

    “By building at the crossroads of culture and crypto and health, Puffpaw is making DePin accessible and practical, and has huge potential for mass adoption, particularly given increasing consumer demand for health-conscious vaping solutions,” Todi said in an email statement.

    Using token incentives to support healthier behavior isn’t new in crypto.

    Puffpaw’s leader Reffo Tse compared aspects of his gambit to StepN, a run-to-earn app on the Solana network.

    Puffpaw’s model attempts to create a self-supporting ecosystem of smokers who try and buy its products while weaning themselves of nicotine.

    Users can only take a certain number of puffs per day from their specialty vapes. They earn more tokens for taking hits of lower-nicotine level vape cartridges.

    They can then use those tokens to buy more vape cartridges from Puffpaw.

  • VPR: $1.77 Million in Revenue, Down From $1.9 Million

    VPR: $1.77 Million in Revenue, Down From $1.9 Million

    VPR Brands reported revenues of $1.77 million for the second quarter of 2024, down from $1.9 million in the comparable 2023 quarter. Gross profit was $451,469, compared with $1.1 million in the second quarter of 2023.

    “While the second quarter presented some challenges, we are encouraged by the solid growth in our product sales and the positive trajectory of our business,” said VPR Brands CEO Kevin Frija.

    “Our ability to generate consistent revenue, coupled with our strategic investments, positions us well for future success. We are committed to driving innovation and expanding our market presence, and we believe that our focus on quality and customer satisfaction will continue to deliver value to our shareholders.”

    Looking ahead, VPR Brands says it remains focused on expanding its product lines and enhancing its market footprint. “With a solid balance sheet and a dedicated team, the company is well-positioned to capitalize on emerging opportunities in the electronic cigarette and vaporizer markets,” the company wrote in a press note.

    Photo: crizzystudio
  • Smoore Reports Half-Year Revenue of $705.4 Million

    Smoore Reports Half-Year Revenue of $705.4 Million

    Photo:TacoTuinstra

    Smoore International Holdings reported revenue of RMB5.04 billion ($705,4 million) for the six months that ended June 30, down 1.7 percent from the comparable 2023 period. Gross profit rose 3.2 percent to RMB1.91 billion while pretax profit was up by 1.9 percent to RMB811.56 million.

    The group’s branded business grew by 71.9 percent to RMB1.12 billion in the first half of 2024, boosted by the company’s digital marketing operations, which enabled the company to respond rapidly to consumer preferences. The group’s Vaporesso brand continued to increase its market share in the open system product segment and has become the leading brand in this category.

    Smoore’s corporate client sales meanwhile, declined by 12.3 percent to RMB3.92 billion in the first six months of 2024, reflecting  different sales performances in different markets around the world.

    In the U.S., Smoore faced competition from noncompliant vaping products. However, the company said it was encouraged by clarifications of the regulatory framework and the strengthening of enforcement in that market, pointing to creation of a federal multi-agency task force to combat the illicit market, among other developments.

    Increasing regulation of the vaping market in Europe, meanwhile, has impacted demand for traditional disposable products, causing the group’s revenue from single-use vapes to decline by approximately 18.9 percent year-on-year to approximately RMB1.22 billion.

    Smoore said it has successfully launched a number of new closed system products in the international market in the first half of the year, and it is confident that this will translate into stronger orders in the second half of the year.

    In China, where the group’s corporate client oriented business centers on closed system electronic vaping products, Smoore reported sales revenue of RMB87.78 million, representing an increase of approximately 41.4 percent  as compared to the same period last year.

  • RLX Revenue Jumps 66 Percent to $86.3 Million

    RLX Revenue Jumps 66 Percent to $86.3 Million

    Photo: RLX Technology

    RLX Technology reported net revenues of RMB627.2 million ($86.3 million) in the second quarter of 2024, up 66 percent from the comparable 2023 quarter. U.S. GAAP net income was RMB134.9 million, down from RMB204.7 million in the same period of 2023. Non-GAAP soared to RMB213.1 million from RMB86.2 million. Gross profit was RMB157.9 million, compared with RMB98.5 million in the comparable 2023 period.

    “We delivered a strong second quarter performance as revenue continued to increase sequentially, driven by our international business expansion,” said RLX Chairperson and CEO Ying (Kate) Wang in a statement.  

    “Our deep exploration of overseas markets and regulations has provided us with valuable insights into the global e-vapor landscape, enabling us to create effective, targeted regional strategies. This year, global regulations are rapidly evolving, with more regulators recognizing e-vapor products as harm-reduction tools for adult smokers. Leveraging our broad expertise in regulatory compliance, we are well-prepared to navigate these changes and ensure a seamless transition for our users and partners.”

    Chief Financial Officer Chao Lu said the considerable year-on-year increase in net revenues reflected the company’s ability to capture growth opportunities in international markets. “While our gross margin declined slightly due to an unfavorable shift in our revenue mix, disciplined cost management bolstered our non-GAAP operating profit margins,” he said.

    “Looking ahead, we are confident of driving continued improvement in both our top and bottom lines, fueled by ongoing revenue growth from international markets and our relentless focus on operational efficiency. As always, our priority is to deliver sustainable and profitable returns to our shareholders.”