Turning Point Brands, Inc. · NYSE:TPB
Turning Point Brands — Q4 2024 Earnings Presentation
20 slides from Turning Point Brands's earnings presentation, Mar 6, 2024
Slide 1: Investor Presentation Q4 2024
Turning Point Brands (NYSE: TPB) Investor Presentation Q4 2024 1 | 5 2 0 1 I N T E R C H A N G E W A Y , L O U I S V I LL E K Y | T U R N I N G P O I N T B R A N D S . C O M |
Slide 2: Disclaimer: Forward Looking Statements
DISCLAIMER FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements may generally be identified by the use of words such as "anticipate," "believe," "expect," "intend," "plan" and "will" or, in each
Slide 3: Company Overview
Turning Point Brands (NYSE: TPB) COMPANY OVERVIEW 3 | 5 2 0 1 I N T E R C H A N G E W A Y , L O U I S V I LL E K Y | T U R N I N G P O I N T B R A N D S . C O M |
Slide 4: TPB: A Unique Consumer Products Growth Company
TPB: A Unique Consumer Products Growth Company Focus Brands #1 Premium and Overall Rolling #1 Loose Leaf Chew and Rapidly Taking Share in Growing Paper Brand in the U.S. and Leading MST Value Brand1 White Pouch Category Turning Point Brands (NYSE: TPB) Canada #1 in MYO Cigar Wraps1 Leader in a gro
Slide 5: TPB is a Consumer Products Company that Markets Compelling Brands
TPB is a Consumer Products Company that Markets Compelling Brands BROAD PORTFOLIO OF ICONIC AND EMERGING BRANDS Turning Point Brands (NYSE: TPB) 5 | 5 2 0 1 I N T E R C H A N G E W A Y , L O U I S V I LL E K Y | T U R N I N G P O I N T B R A N D S . C O M |
Slide 6: Efficient Manufacturing, Supply & Distribution Model
Efficient Manufacturing, Supply & Distribution Model Turning Point Brands (NYSE: TPB) 6 | 5 2 0 1 I N T E R C H A N G E W A Y , L O U I S V I LL E K Y | T U R N I N G P O I N T B R A N D S . C O M |
Slide 7: Powerful Distribution Infrastructure
Powerful Distribution Infrastructure North American retail presence that reaches over ~220,000 outlets + B2C online sites1 Turning Point Brands (NYSE: TPB) National Regional Product B2C B2B Distribution Sales Teams Sales Teams Distribution Distribution National sales team Regional sales team Dedicat
Slide 8: TPB Business Segments
TPB Business Segments Zig-Zag Products Stoker’s Products Rolling papers and cones, Make-Your-Own (“MYO”) cigar Loose leaf chew, moist snuff, and white nicotine pouches wraps, cigars, and smoking accessories FY-24 $192mm $168mm Net Sales Turning Point Brands (NYSE: TPB) Key Brands • Sustainable growt
Slide 9: Zig-Zag Products: Iconic Brand with Leading Market Share
Zig-Zag Products: Iconic Brand with Leading Market Share ABOUT ZIG-ZAG Papers Wraps New Product Launches Embedded into pop culture #1 premium and overall Market leader in MYO cigar Continued roll-out of paper with a storied history that rolling paper brand sold in wraps with a majority share of cone
Slide 10: Zig-Zag Products: Continued Profit and Margin Growth
Zig-Zag Products: Continued Profit and Margin Growth Net Sales Gross Profit $ in Millions $ in Millions $190 $192 $180 $176 $107 $107 $103 $101 Turning Point Brands (NYSE: TPB) $78 $133 $109 $59 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Growth initiatives focused on new product int
Slide 11: Stoker's Products: Iconic Brand with Sustained Growth
Stoker’s Products: Iconic Brand with Sustained Growth ABOUT STOKER’S MST Tubs MST Cans Chew FRE & ALP White Pouch Building brand equity for Introduced a larger tub Accelerating strength Stoker’s is #1 discount Positive consumer over 80 years format Moist Snuff from distribution gains and overall loo
Slide 12: Stoker's Products: Continued MST Distribution Gains
Stoker’s Products: Continued MST Distribution Gains Stores Selling Stoker’s MST Long Runway for Growth In Thousands In-store representing ~69% 1 of volume weighted distribution 85 Additional ~30-50k stores 82 77 78 79 targeted for national distribution Turning Point Brands (NYSE: TPB) 70 62 63 57 41
Slide 13: Stoker's Products: Continued Profit and Margin Growth
Stoker’s Products: Continued Profit and Margin Growth Net Sales Gross Profit $ in Millions $ in Millions $168 $95 $145 $82 Turning Point Brands (NYSE: TPB) $131 $124 $71 $116 $68 $62 $100 $53 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 Smokeless Net Sales and Gross Profit have shown
Slide 14: Modern Oral Market – FRE & ALP
Modern Oral Market – FRE & ALP Modern Oral Market Size1 Can Volume in Millions 250 • Analysts estimate the modern oral market will reach $5-7 billion by the end of decade • TPB has a proven playbook of successfully competing against 200 larger competitors • TPB does not require a leading market shar
Slide 15: Financial Update
Turning Point Brands (NYSE: TPB) Financial Update 15 | 5 2 0 1 I N T E R C H A N G E W A Y , L O U I S V I LL E K Y | T U R N I N G P O I N T B R A N D S . C O M |
Slide 16: Recent Business Performance
Recent Business Performance Solid Performance from our Zig-Zag and Stoker’s businesses FY-24 • Net Sales of $360.7 million (+11% YoY) and Adjusted EBITDA1 of $104.5 million (+12% YoY) Performance • Net Sales for Zig-Zag increased +7% YoY • Net Sales for Stoker’s increased +16% YoY • Generated $56 mi
Slide 17: Expanding Addressable Markets
Expanding Addressable Markets End Market Market Size1 Opportunity ($ Millions) White Nicotine Pouch >$5,000 Scale FRE including differentiated higher nicotine offerings, and launch ALP into a rapidly growing market Turning Point Brands (NYSE: TPB) Mass-Market Cigars >$2,500 Re-enter large market tha
Slide 18: Historical Financials
Historical Financials Net Sales Adjusted EBITDA $ in Millions $ in Millions $361 $103 $104 $321 $325 $94 $93 $301 $82 $249 $209 $54 Turning Point Brands (NYSE: TPB) 2019 2020 2021 2022 2023 2024 2019 2020 2021 2022 2023 2024 % Growth 3.5% 19.2% 20.9% 6.8% 1.2% 11.0% % Margin 25.7% 32.9% 34.2% 29.3%
Slide 19: EBITDA Adjustment Detail
EBITDA Adjustment Detail Reconciliation of GAAP Net Income to Adjusted EBITDA Years Ended December 31, a) Represents costs associated with corporate (in $ Millions) 2019 2020 2021 2022 2023 2024 restructuring, including severance and early retirement. b) Represents cost associated with scoping and N
Slide 20: Thank You
Turning Point Brands (NYSE: TPB) THANK YOU 20 | 5 2 0 1 I N T E R C H A N G E W A Y , L O U I S V I LL E K Y | T U R N I N G P O I N T B R A N D S . C O M |