22nd Century Says Q3 Cigarette Net Revenues, Including Export Volume, Increased To $4.1M Or 18% Compared To $3.5M In The Prior Year Comparable Period
Benzinga
2024-11-12
Q3 2024 cigarette carton volumes declined 22% due to prior year comparable period stocking orders but benefitted from price increases that took effect in April 2024. Cigarette net revenues were stable compared to the immediately preceding quarter, which benefitted from a periodic Spectrum® research cigarette order valued at $0.9 million.
Filtered cigars net revenues decreased to $1.7 million, compared to $4.1 million in the prior year comparable period, and $3.3 million in the immediately preceding quarter, reflecting lower volumes as the Company completed last time buy orders under our terminated contract manufacturing agreements, now having transitioned away from low or negative margin filtered cigar orders. Additionally, price increases for certain customers took effect in April 2024. The Company is presently in discussions for additional volume in this category under new agreements with improved margin.
Cigarillo distribution net revenues amounted to $0.2 million, compared to $0 in the prior year quarter and $0.6 million in the preceding quarter, reflective of the expanded Pinnacle branded product offerings launched in Q2 2024 with a top-five national convenience store chain.
VLN® cigarette net revenues were negligible in the third quarter, a decrease from the comparable prior year period which benefited from stocking orders with major c-stores. While the Company has secured broad distribution of its VLN® products, the sell-through has not yet materialized. The Company is making changes to rebrand and relaunch its VLN® products, which will be discussed further on the conference call noted below.