Turning Point Brands, Inc. · NYSE:TPB
Turning Point Brands — Q1 2024 Earnings Presentation
20 slides from Turning Point Brands's earnings presentation, May 2, 2024
Slide 1: Investor Presentation Q1 2024
Turning Point Brands (NYSE: TPB) Investor Presentation Q1 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 L L 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 L L 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 Segment Comprises Majority of Profit Pool and #1 Premium and Overall Benefits from Secular #1 Loose Leaf Chew Rolling Paper Brand in the U.S. Growth Trends in and Leading MST Value Turning Point Brands (NYSE: TPB) and Canada and #1 in MYO Cannabinoid Co
Slide 5: Broad Portfolio of Iconic and Emerging Brands
TPB is a Consumer Products company that markets strong 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 L L 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 L L 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 • Extensive Distribution Network and Data Driven Sales Organization • North American retail presence that reaches over ~215,000 outlets + B2C online sites Turning Point Brands (NYSE: TPB) National Regional Product B2C B2B Distribution Sales Teams Sales Teams Dist
Slide 8: TPB Business Segments
TPB Business Segments Zig-Zag Products Stoker’s Products Rolling papers and Make-Your-Own (“MYO”) cigar wraps Loose leaf chewing tobacco, moist snuff tobacco, and white nicotine pouches LTM Sales1 $185mm $147mm Turning Point Brands (NYSE: TPB) Key Brands Sustainable growth Capitalize on strong g
Slide 9: Zig Zag Products: Iconic Brand with Leading Market Share
Zig Zag Products: Iconic Brand with Leading Market Share About Zig-Zag Papers Wraps New Product Launches Embedded into pop culture #1 premium and overall Market leader in MYO cigar Continued roll-out of paper with a storied history that rolling paper brand sold in wraps with a majority share cones,
Slide 10: Zig Zag Products: Continued Profit and Margin Growth
Zig Zag Products: Continued Profit and Margin Growth Growth initiatives focused on new product introductions and channel expansions aligned with secular market growth trends Net Sales ($M) Adjusted Gross Profit ($M) Turning Point Brands (NYSE: TPB) $190 $107 $106 $185 $103 $180 $101 $176 $78 $133 $1
Slide 11: Stoker's Products: Iconic Brand with Sustained Growth
Stoker’s Products: Iconic Brand with Sustained Growth About Stoker's MST TUBS MST Cans Chew Building brand equity for Introduced a larger tub format Accelerating strength from #1 discount and overall over 80 years. Stoker’s is Moist Snuff Tobacco (MST) distribution gains and loose-leaf chew brand in
Slide 12: Stoker's Products: Continued MST Distribution Gains
Stoker’s Products: Continued MST Distribution Gains Long Runway for Growth Currently in stores representing ~67%1 of volume weighted 78.6 81.7 distribution 77.4 77.6 Turning Point Brands (NYSE: TPB) 70.4 Additional ~30-50k stores targeted 61.6 63.1 57.0 for national distribution 41.4 2015 2016 2017
Slide 13: Stoker's Products: Continued Profit and Margin Growth
Stoker’s Products: Continued Profit and Margin Growth Smokeless Net Sales and Gross Profit have shown steady growth with operating leverage driven by MST volume and pricing gains. Net Sales ($M) Adjusted Gross Profit ($M) Turning Point Brands (NYSE: TPB) $82 $83 $145 $147 $71 $68 $131 $124 $62 $116
Slide 14: Modern Oral Market – FRE
Modern Oral Market – FRE Significant opportunity with FRĒ in a large and growing market Modern Oral Market Size 200 100% • The modern oral market is trending towards a >$2 Units - in mms YoY Growth billion market in 2024 with strong growth trajectory 180 90% • FRĒ has a differentiated offering throu
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 L L 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 • Q1 2024 Financial Results: Net Sales of $97.1 million (-3.9%) and Adjusted EBITDA* of $25.3 million (+21.6% YoY) Recent • Net Sales for Q1 Zig-Zag and Stoker’s products increased over 10% Year-Over-Year Performa
Slide 17: Expanding Addressable Markets
Expanding Addressable Markets Extending into large, adjacent markets provides runway for growth End Market Market Size1 Opportunity Alternative Channel ~$200mm Increase share for Zig-Zag papers (currently (Headshops and single-digit/low double-digit %) and other ancillary Dispensaries) Zig-Zag produ
Slide 18: Historical Financials
Historical Financials $ Turning Point Brands (NYSE: TPB) Note: Figures are $ in millions. 1. See “EBITDA Adjustment Detail” slide. 18 | 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 L L 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 19: EBITDA Adjustment Detail
EBITDA Adjustment Detail Reconciliation of GAAP Net Income to Adjusted EBITDA ($ in millions) Turning Point Brands (NYSE: TPB) 19 | 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 L L 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 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 L L E K Y | T U R N I N G P O I N T B R A N D S . C O M |