Turning Point Brands, Inc. has released its fourth-quarter and full-year 2024 results. In the fourth quarter of 2024, the company's adjusted EBITDA was $26.2 million, a 5.3% increase over the prior year. Net sales for the same period increased by 12.8% year-over-year to $93.7 million. For the full year, the company reported adjusted EBITDA of $104.5 million, up 12.0% over the prior year.
The company's total consolidated net sales for the fourth quarter of 2024 increased by 12.8% to $93.7 million. This increase was driven by a 1.8% rise in Zig-Zag product segment net sales and a significant 25.8% increase in Stoker's product segment net sales.
In terms of gross profit, there was a 10.6% increase to $52.4 million for the fourth quarter. However, net income decreased by 76.1% to $2.4 million compared to the year-ago period, primarily due to a one-time loss from discontinued operations of $7.3 million. Adjusted net income, on the other hand, increased by 12.7% to $18.0 million for the same period.
For the full year, total consolidated net sales increased by 11.0% to $360.7 million. The Zig-Zag product segment net sales saw a 6.6% increase, while the Stoker's product segment net sales increased by 16.4%. Gross profit for the full year increased by 10.2% to $201.6 million, and adjusted EBITDA increased by 12.0% to $104.5 million.
In the modern oral sector, combined sales were $11.2 million for the quarter, with fre sales more than quadrupling versus the year-ago period and growing 26% sequentially. The company also provided guidance for the full year 2025, expecting adjusted EBITDA of $108-113 million and modern oral sales of $60-80 million.
During the quarter, the company re-purchased 21,072 shares of common stock at a cost of $0.9 million. It also issued $300 million of senior secured notes due 2032 and used the proceeds to repay its $250 million of existing senior secured notes due 2026 with no pre-payment penalty.
The financial results will be discussed in an earnings conference call scheduled for March 6, 2025, at 10:00 a.m. Eastern Time.
As of December 31, 2024, the company had total gross debt of $248.6 million, net debt of $202.4 million, and total liquidity of $103.6 million, comprising $46.2 million in cash and $57.4 million of asset-backed revolving credit facility capacity. Today the company's shares have moved -6.3% to a price of $62.81. For the full picture, make sure to review Turning Point Brands's 8-K report.
