Turning Point Brands Reports 28.1% Revenue Growth to $106.4 Million in Q1 2025

Turning Point Brands, Inc. reported a significant increase in financial performance for the first quarter of 2025, with consolidated net sales reaching $106.4 million, a 28.1% increase from $83.1 million in the same period last year. The growth was primarily driven by a 62.7% surge in the Stoker’s products segment, which generated $59.2 million in sales, while the Zig-Zag products segment saw a modest increase of 1.2%, totaling $47.3 million. The company’s gross profit also rose to $59.6 million, up 23.3% from $48.4 million, although the gross profit margin slightly decreased to 56.0% from 58.2%.

In terms of profitability, Turning Point Brands reported a consolidated net income of $15.8 million for the quarter, compared to $12.2 million in the prior year, marking a 29.6% increase. The income attributable to the company was $14.4 million, or $0.81 per share, up from $12.0 million, or $0.68 per share, in the previous year. The increase in net income was attributed to higher sales volumes, particularly in modern oral products, which contributed significantly to the Stoker’s segment growth.

The company also underwent strategic changes, including the divestiture of its Creative Distribution Solutions segment, which was completed on January 2, 2025. This move involved contributing 100% of its interest in South Beach Brands LLC to General Wireless Operations, Inc. in exchange for a 49% equity stake in the joint venture. This divestiture is expected to streamline operations and focus on core product lines, enhancing overall efficiency.

Operationally, Turning Point Brands expanded its market presence, with products now available in approximately 220,000 retail locations across North America. The company reported a notable increase in customer engagement, particularly in the Stoker’s products segment, which saw a 55.1% increase in sales volume. The company’s total assets increased to $564.6 million as of March 31, 2025, up from $493.4 million at the end of 2024, reflecting strong cash flow and investment in growth initiatives.

Looking ahead, Turning Point Brands expressed optimism about its growth trajectory, driven by ongoing investments in product development and market expansion. The company has a robust cash position of $99.6 million and $62.2 million available under its asset-backed revolving credit facility, providing ample liquidity to support its operational and strategic objectives. However, the company also acknowledged potential risks, including regulatory challenges and market competition, which could impact future performance.