Turning Point Brands, Inc. (NYSE: TPB) reported its third quarter financial results on Wednesday for the three months ended Sept. 30, 2023, revealing a 10.2% year-over-year decrease in Zig-Zag products net sales to $46.8 million.
Graham Purdy, president and CEO of the Louisville, Kentucky company behind the rolling paper brand said Zig-Zag net sales were stable sequentially.
“The Zig-Zag segment was stable sequentially from the second quarter and notwithstanding some transitory headwinds posted its third-highest revenue quarter,” Purdy explained. For the quarter, the Zig-Zag Products segment gross profit decreased 4.6% to $26.7 million. Gross margin increased 330 basis points to 57.2% driven primarily by product mix.
“Our alternative channel business had another quarter of strong double-digit growth as we continue to expand penetration in the growing market,” said Purdy. “We remain encouraged by our prospects with secular cannabis consumption growth trends driving demand for our products.”
As a testament to that, the company teamed up with Petalfast Inc., a full-spectrum marketing and sales agency for the cannabis industry last year, to drive the distribution expansion of Zig-Zag rolling paper.
Q3 2023 Financial Highlights
- Total consolidated net sales decreased 5.6% year-over-year to $101.7 million.
- Stoker’s Products net sales increased 10.1% to $36.9 million on double-digit growth …