22nd Century Group Inc. · Q2 2023 earnings

Briefing

22nd Century Group reported a 62% increase in net revenues to $23.4 million for Q2 2023, launched VLN® sales in California, Texas and Florida, delivered record GVB ingredient volumes, and initiated an operating cost reduction program.

22nd Century Group's Q2 2023 net revenues increased by 62% to $23.4 million. The company launched VLN® sales in key states, achieved record GVB ingredient volumes, and initiated a cost reduction program targeting $15+ million in annualized savings. They updated their 2023 revenue outlook to $80 million to $90 million.

• Net revenues for Q2 2023 increased 62% to $23.4 million.
• VLN® sales were launched in California, Texas, and Florida, expanding retail availability.
• Record GVB ingredient volumes were delivered, solidifying the company's position as a dominant supplier in North America.
• An operating cost reduction program was initiated, targeting $15+ million in annualized savings.

Headline financials

Revenue & EPS history

The Company revised the Company’s 2023 revenue outlook from a range of $105 million to $110 million to a range of $80 million to $90 million to account for changes in the launch timeline and scope of VLN® at certain key chains in 2023, transitioning GVB volumes back to internal production and the operating cost reduction plan.