Turning Point Brands Inc (NYSE:TPB) said it expects preliminary sales exceeding $100 million for the second quarter. The company also reported a proposed secondary offering of two million shares of common stock by its significant stockholders.
The Louisville-based company, a leading provider of Other Tobacco Products and adult consumer alternatives, also said that, during the second quarter of 2020, the company delivered strong execution of its business strategy and achieved record quarterly net sales.
Preliminary estimates of net sales exceeded $100 million for the second quarter of 2020 compared to net sales guidance of $81 to $87 million provided on April 28. All segments outperformed management expectations for the second quarter of 2020.
In the Smokeless segment, the secular consumer down-trading trends that accelerated earlier in the year continued during the quarter as the Stoker’s MST line continues to build momentum and gain consumer acceptance.
In the Smoking segment, sales benefitted from increased consumption, new product penetration and recently implemented growth initiatives which offset the COVID-related supply chain disruption experienced in the MYO cigar wraps business. In the NewGen segment, market share gains and new product introductions returned the segment to positive year-over-year sales growth.
TPB has filed a registration statement (including a prospectus) with the Securities and Exchange Commission as well as a preliminary prospectus supplement with respect to the offering to which this communication relates.
TPB shares advanced 29 cents, or 1.1%, to $26.75 to begin Thursday’s trading.
