Turning Point blames US regulation for drop in vapour product sales and profit

The legal challenges faced by the vaping industry in the US impacted Turning Point Brands’ vapour portfolio in 2021, with a significant drop in the last quarter’s net sales and gross profit.

Turning Point, a manufacturer and distributor of branded consumer products, including alternative smoking accessories, said that its emerging brand within its new generation (“NewGen”) segment posted a net sales decline of 7.5% to $144.7m for 2021. For the last quarter of the year, its net sales fell by around 22% to $28m.

Gross profit for the quarter fell from NewGen products by 40.6% to $7.0m, while for the whole year it dropped by 5.9% to $47m.