Vector Group Ltd (VGR) Q2 2024 Earnings Call Highlights: Strong Net Income Growth and Montego's ...

GuruFocus.com2024-10-10

Cash and Cash Equivalents: $391 million as of June 30, 2024, including $150 million at Liggett. Investment Securities and Long-term Investments: Fair market value of approximately $188 million. Second...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nVector Group Ltd (VGR) Q2 2024 Earnings Call Highlights: Strong Net Income Growth and Montego's ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-10 03:40 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/vector-group-ltd-vgr-q2-194032939.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Cash and Cash Equivalents: $391 million as of June 30, 2024, including $150 million at Liggett.\nInvestment Securities and Long-term Investments: Fair market value of approximately $188 million.\nSecond...</p>\n\n<a href=\"https://finance.yahoo.com/news/vector-group-ltd-vgr-q2-194032939.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"VAQC","symbol_name":"Vector Acquisition Corporation II","start_time":0,"source_url":"https://finance.yahoo.com/news/vector-group-ltd-vgr-q2-194032939.html","article_id":"2474062532","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/4iCEBYvmUMZO66z6hB2oug--~B/aD0zMTQ7dz0zMTQ7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/0b27e7407d45533de9248e3aadf40c14"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2474062532","pubTimestamp":1728502832,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Cash and Cash Equivalents: $391 million as of June 30, 2024, including $150 million at Liggett.Investment Securities and Long-term Investments: Fair market value of approximately $188 million.Second Quarter Revenue: $371.9 million, up from $365.7 million in Q2 2023.Second Quarter Net Income: $54.2 million or $0.34 per diluted share, up from $38.1 million or $0.24 per diluted share in Q2 2023.Adjusted EBITDA : $103.3 million, up from $94.1 million in Q2 2023.Six Months Revenue: $696.5 million, compared to $699.8 million in the first half of 2023.Six Months Net Income: $89 million or $0.56 per diluted share, up from $72.8 million or $0.46 per diluted share in the first half of 2023.Adjusted EBITDA : $186 million, up from $172.2 million in the first half of 2023.Tobacco Segment Adjusted Operating Income : $103 million, a 10.5% increase from the prior year period.Montego National Retail Market Share: Grew to 4.1%, up from 3.5% in the prior year period.Tobacco Adjusted EBITDA : $104.4 milli","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"VAQC":"Vector Acquisition Corporation II","VGR":"Vector Group Ltd."},"translate_title":"Vector Group Ltd(VGR)2024年第二季度收益看涨期权亮点：强劲的净利润增长和Montego的……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"VAQC":1,"VGR":1},"content_text":"Cash and Cash Equivalents: $391 million as of June 30, 2024, including $150 million at Liggett.\nInvestment Securities and Long-term Investments: Fair market value of approximately $188 million.\nSecond Quarter Revenue: $371.9 million, up from $365.7 million in Q2 2023.\nSecond Quarter Net Income: $54.2 million or $0.34 per diluted share, up from $38.1 million or $0.24 per diluted share in Q2 2023.\nAdjusted EBITDA (Q2 2024): $103.3 million, up from $94.1 million in Q2 2023.\nSix Months Revenue: $696.5 million, compared to $699.8 million in the first half of 2023.\nSix Months Net Income: $89 million or $0.56 per diluted share, up from $72.8 million or $0.46 per diluted share in the first half of 2023.\nAdjusted EBITDA (First Half 2024): $186 million, up from $172.2 million in the first half of 2023.\nTobacco Segment Adjusted Operating Income (Q2 2024): $103 million, a 10.5% increase from the prior year period.\nMontego National Retail Market Share: Grew to 4.1%, up from 3.5% in the prior year period.\nMontego Distribution: Expanded to more than 103,000 stores, up from approximately 89,000 stores in the prior year period.\nSecond Quarter Gross Margin: 34.2% of revenues, an increase of approximately 230 basis points from Q2 2023.\nTobacco Adjusted EBITDA (Q2 2024): $104.4 million, a 10.2% increase from Q2 2023.\nTobacco Adjusted EBITDA (First Half 2024): $188.8 million, an 8.1% increase from the first half of 2023.\n\n\nWarning! GuruFocus has detected 5 Warning Sign with VGR.\n\nRelease Date: August 01, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nVector Group Ltd (NYSE:VGR) reported an increase in net income to $54.2 million, up from $38.1 million in the previous year.\nAdjusted EBITDA for the second quarter rose to $103.3 million, showing a significant improvement from $94.1 million in the prior year.\nThe company's tobacco segment, particularly the Montego brand, demonstrated strong performance with a national retail market share increase to 4.1%.\nMontego's distribution expanded to over 103,000 stores, indicating successful market penetration.\nVector Group Ltd (NYSE:VGR) maintained significant liquidity with cash and cash equivalents of approximately $391 million as of June 30, 2024.\n\n Negative Points \n\nVector Group Ltd (NYSE:VGR) experienced a 5.1% decrease in wholesaler shipments during the second quarter.\nRevenues for the six months ended June 30, 2024, slightly decreased to $696.5 million from $699.8 million in the previous year.\nLiggett's second quarter retail shipments declined by 9.6% compared to the same period in 2023.\nThe deep discount market segment, while strong, indicates ongoing pressure on consumer disposable income.\nThe company faces challenges from inconsistent short-term wholesaler purchasing patterns, affecting shipment performance.\n\n Q & A Highlights \nQ: What's been driving the strong market share for Montego, and how does its pricing compare to non-Montego brands? A: Nicholas Anson, President and COO of Liggett Vector Brands, explained that the strategic investment in Montego and effective management of other core brands like Eagle 20's and Pyramid have been key. Montego offers a 45% to 50% discount compared to Marlboro, providing a compelling value proposition for value-seeking smokers.\nQ: How does the business perform if economic conditions worsen, and what happens if there's an economic recession? A: Anson noted that continued economic weakness would likely lead to more down trading, benefiting their discount segment. Even if the economy improves, the premium segment remains less attractive due to high prices, and consumers often stick with the discount segment due to its quality and value.\nQ: What trends are you seeing across different retail channels, and where is the strength coming from? A: Anson highlighted strong performance in independent stores and discount chains like Dollar General and Family Dollar. Their partnerships and visibility in these stores are yielding positive results.\nQ: With the growth of the pouch segment, such as Zyn, is this a challenge or an opportunity for growth in the deep discount market? A: Anson stated that the pouch segment's growth is not significantly impacting the combustible or discount segments. While they monitor new reduced-risk products, their focus remains on their core competencies in the discount segment.\nQ: Is there any new regulatory activity affecting the business? A: Howard M. Lorber, Chairman of the Board, mentioned that regulatory activity has been quiet, possibly due to political factors. He noted that the company is well-positioned regardless of regulatory changes.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.4","shortVersion":"4.29.4","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2474062532"}