22nd Century Q2 revenue falls on product shift
XXII•Outlook
- Company targets expanding VLN retail distribution to about 5,000 outlets by year-end 2026
- Company expects natural style cigarette expansion to accelerate revenue and margin growth in H2 2026
- 22nd Century aims to advance toward EBITDA breakeven as higher-margin revenues scale
Overview
- U.S. low-nicotine tobacco firm's Q2 revenue fell 30% yr/yr to $2.9 mln
- Adjusted EBITDA loss widened to $3.5 mln from $2.6 mln yr/yr
- Revenue decline reflects shift from low-priced exports to higher-margin VLN products
Result drivers
- Shift to higher-margin products - Co said revenue decline was due to moving away from high-volume, low-priced export customers toward higher-margin VLN products
- Retail expansion - Co expanded Pinnacle VLN retail distribution into about 150 additional stores in metro New York and northern New Jersey and launched in California
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