Turning Point Brands (NYSE:TPB) Q2 2024 Results Conference Call August 1, 2024 10:00 AM ET
Company Participants
Andrew Flynn - Chief Financial Officer
Graham Purdy - Chief Executive Officer
Summer Frein - Chief Revenue Officer
Conference Call Participants
Michael Legg - The Benchmark Company
Eric Des Lauriers - Craig-Hallum Capital Group
Operator
Thank you for standing by. My name is Sully, and I will be your conference operator today. At this time, I would like to welcome everyone to the Turning Point Brands Second Quarter 2024 Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker remarks, there will be a question-and-answer session. [Operator Instructions] Thank you.
I would now like to turn the call over to Andrew Flynn. Please go ahead.
Andrew Flynn
Good morning, everyone. A short while ago, we issued a press release covering our Q2 results. This release is located in the IR section of our website at www.turningpointbrands.com. During this call, we will discuss our consolidated and segment operating results and provide our perspective on the operating environment and our progress against our strategic plan.
As is customary, I direct your attention to the discussion of forward-looking and cautionary statements in today's press release and the risk factors in our filings with the Securities and Exchange Commission.
On the call today, we will reference certain non-GAAP financial measures. These measures and reconciliations to GAAP are in today's earnings release, along with reasons why management believes they provide useful information.
I will now turn the call over to Graham Purdy, our CEO.
Graham Purdy
Thanks, Andrew. Good morning, everyone, and thank you for joining our call. Our consolidated first quarter results were better than expected and demonstrated continued progress against our plan.
Adjusted EBITDA increased 7% to just over $27 million for the quarter. Given our solid start to the year, we are increasing our guidance for projected 2024 adjusted EBITDA to $98 million to $102 million versus our prior guidance of $95 million to $100 million. Neither of these ranges include contributions from CDS.
During the June quarter, Zig-Zag performed well with revenue up 8% to $50.5 million, driven by high single-digit growth in our North American papers and wrap businesses and a strong showing from our cigar business, which we've leaned into more heavily in 2024. We are excited about this business going forward.
We remain committed to our alternative channel strategy of becoming a one-stop shop for our old customers. In particular, we continue to expand our SKU assortment to offer these customers a more diverse portfolio of products. The alt channel declined 3% in the quarter. But as a whole, in the first half, this business is up about 28%. The drop in sequential is attributable to the first quarter having a particularly robust trade show calendar and the timing of some large purchases in March.