MOCKSVILLE, N.C., Aug. 20, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), a tobacco products company that has for 27 years led and continues to lead the fight against the harms of smoking driven by nicotine addition, today issued the following letter to stockholders from Larry Firestone, the Chief Executive Officer of 22nd Century Group, Inc.: A Letter to Our Shareholders We recently released our second quarter 2025 earnings, along with important corporate updates regarding the ongoing la ...

Extensive Clinical Data Continues to Demonstrate VLN® Reduced Nicotine Content Tobacco Helps Reduce Smoking and Increase Quit Attempts Growing List of VLN® Based Cigarette Brands Bring Non-Addictive Alternatives to the Fight Against Smoking MOCKSVILLE, N.C., July 10, 2025 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), the only tobacco products company that has for 27 years led and continues to lead the fight against the harms of smoking driven by nicotine addiction today announces a corporate ...

Summary of Philip Morris International (PM) 2025 Conference Call Company Overview - **Company**: Philip Morris International (PM) - **Date**: June 03, 2025 - **Key Speaker**: Emmanuel Babeau, CFO Core Industry Insights - **Industry**: Tobacco and Smoke-Free Products - **Market Trends**: Strong growth in smoke-free product categories, particularly IQOS and ZYN, with expectations for continued expansion in various global markets. Key Points and Arguments Financial Performance - PM is on track for strong growth in revenue, operating income, and adjusted EPS before foreign exchange (Forex) impacts, primarily driven by the smoke-free portfolio [5][18] - In Q1 2025, PM reported nearly 10% adjusted market sales growth in Japan and over 7% in Europe, despite challenges such as flavor bans [6] - The company anticipates a significant impact from the flavor ban in Europe, estimating a loss of approximately 1 billion sticks in 2025 [6] Product Performance - **IQOS**: Continued strong growth, with a focus on expanding market share in various regions, including the Gulf countries, Indonesia, and Mexico [6][10] - **ZYN**: Exceptional performance in Q1 2025, with growth exceeding 50% in the US. The company expects to resolve out-of-stock issues by Q3 2025, leading to further consumer uptake [7][8][49] - **Vive**: The vaping product is being developed more tactically, with a focus on profitability and market presence in key EU markets [12][13] Multi-Category Strategy - PM is adopting a multi-category approach, integrating IQOS, ZYN, and Vive to enhance brand loyalty and consumer experience. This strategy is showing positive results in markets like Poland, Greece, and Romania [14][26] - The company emphasizes that these products do not cannibalize each other but rather strengthen the overall brand portfolio [14] Market Outlook - PM targets organic revenue growth of 6% to 8% and adjusted EPS growth of 10.5% to 12.5% for 2025, with a strong focus on smoke-free products [18][19] - The company aims for two-thirds of its revenue to come from smoke-free products by 2030, supported by ongoing market expansion and product innovation [20][22] Regulatory Environment - PM acknowledges the challenges posed by varying regulations across markets, with some countries still imposing bans on smoke-free products. However, there is optimism regarding tobacco harm reduction policies in the US and several European countries [66][68] - The new head of the FDA's Center for Tobacco Products (CTP) is expected to support tobacco harm reduction initiatives, which could positively impact PM's market strategies [70] Competitive Landscape - The US market for nicotine pouches is becoming increasingly competitive, with many brands aggressively discounting prices. PM maintains a premium positioning for ZYN, which is currently priced higher than many competitors [51][52] - Despite competition, PM remains the only brand with Premarket Tobacco Product Applications (PMTAs) approved for its full range of ZYN products, reinforcing its market leadership [54][55] Consumer Insights - The company notes a shift in consumer perception of nicotine, particularly with ZYN being viewed as a lifestyle product rather than just a nicotine source. This change is expected to facilitate broader acceptance of nicotine pouches in new markets [32][33][57] Additional Important Insights - PM's smoke-free products are associated with superior financial metrics, including higher revenue per unit and gross margin rates compared to combustible products [15][16] - The company is focused on long-term profit growth, with a commitment to progressive dividend policies and potential share buybacks once debt targets are met [63][64] This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting PM's robust growth trajectory and commitment to innovation in the tobacco industry.

Financial Data and Key Metrics Changes - Net revenue for Q1 2025 was $6 million, a 50% increase sequentially from $4 million in Q4 2024 [28] - Gross margin loss improved by 50% to a loss of $600,000 from the previous quarter [28] - Net loss from continuing operations improved to $3.3 million from $4.2 million in the preceding quarter [31] - Adjusted EBITDA loss significantly improved to $2.3 million from $3.9 million in Q4 2024 [31] Business Line Data and Key Metrics Changes - Total cartons sold were 476,000, an increase of 41% compared to 338,000 in Q4 2024 [29] - The company is focusing on two main segments: reduced nicotine premium products and value-focused CMO brands [9][10] Market Data and Key Metrics Changes - The combustible cigarette market is valued at $85 billion, facing increasing price pressures and regulatory scrutiny [6] - The company aims to serve consumers transitioning from high nicotine products to lower nicotine options, capitalizing on market dynamics [21] Company Strategy and Development Direction - The company is transitioning into a growth phase, focusing on expanding distribution and launching targeted marketing campaigns [12][20] - New product introductions include Smoker Friendly Black Label and additional SKUs for existing brands, aimed at increasing market share [14][15] - The company is not waiting for FDA regulations to finalize its strategy and has developed technology for low nicotine products already approved by the FDA [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving breakeven EBITDA by Q4 2025, supported by improved pricing structures and volume growth [34][36] - The company is focused on restoring fiscal responsibility and improving balance sheet ratios through debt reduction and working capital improvements [27] Other Important Information - The company has reduced its outstanding debt to $3.9 million and executed a capital raise of approximately $5.4 million [31][32] - A lawsuit against Dorchester Insurance Company for $9 million in business interruption insurance is ongoing, with a trial date set for November 2025 [32] Q&A Session Summary Question: Do you still foresee a breakeven of EBITDA for the fourth quarter of this year? - Management confirmed they are on track to achieve breakeven in the latter half of the year [34] Question: Will CMO continue to grow from its first quarter level and will VLN kick in over the course of the year? - Management indicated that both Smoker Friendly and Pinnacle franchises are on a growth path, with state approvals expected to drive distribution [36] Question: Does the increase in accounts receivable indicate a need for additional financial capital? - Management stated they are comfortable with their cash runway following recent financing and attributed the increase in receivables to new customer agreements [38][39] Question: What is the expected timeline for collecting the accounts receivable balance? - Management noted that collections occur upon product delivery, following typical shipment terms [40] Question: What has been the share issuance dilution from the warrants? - Current shares outstanding include approximately 7 million shares issued under the recent warrant inducement offering, with additional warrants expected to be exercised [42] Question: Are there any implications for twenty second Century Group from competitors' earnings results? - Management highlighted that trends in the market, particularly the migration from Tier one to Tier four brands, present opportunities for the company [46][48] Question: Have we seen the worst of it in 2024 past, and are we now on a growth trajectory? - Management confirmed that they are now on a growth trajectory in terms of cartons, price, and revenue [49]