Turning Point Brands (NYSE: TPB) announced the appointment of long-tenured company executive Graham Purdy as CEO and board director on Monday to replace Yavor Efremov after he resigned as CEO and director. Efremov lasted barely less than a year as the CEO as he was officially appointed to the role in January 2022. The company also lowered its guidance for 2022 sales.
Purdy served as Chief Operating Officer since 2019 prior to his appointment as CEO, overseeing two of the company’s highly successful brand extensions during his tenure — Zig-Zag cigar wraps and Stoker’s dipping tobacco.
“I am excited to serve as Turning Point’s next CEO and drive the company’s strategic priorities to enhance shareholder value,” said Purdy. “Over the past three decades, Turning Point has built a leading industry position through our portfolio of large and leading brands, innovative marketing, and omnichannel distribution capabilities, along with our strong track record of new product innovation.
I look forward to working with our highly talented team to continue to build a world-class consumer products company for the benefit of our employees, customers, and shareholders.”
The new honcho has held various leadership positions since joining TPB in 2004, including as president of the new products division and senior vice president of sales.
In a news release, the company said that Purdy led day-to-day operations during the COVID-19 pandemic, “managing through complex challenges to the business while completing three of the most successful years in the company’s history.”
David Glazek will transition from non-executive to executive board chairman, effective January 2023.
“Graham is a highly experienced operator who has been integral to Turning Point’s success,” said Glazek, chairman of TPB’s board of directors. “His deep knowledge of the company’s operations and industry make him ideally suited to lead TPB today. We are confident in his ability to oversee Turning Point’s brand strategy and sharpen the company’s operational focus.”
Glazek added, “The board would also like to thank Mr. Efremov for his many contributions during his tenure. In the last year, he has launched key initiatives, including the expansion of our distribution platform, enhancing our IT infrastructure, and adding new leadership talent. We wish him well going forward.”
Efremov in the release said that he was “proud” of what TPB accomplished under his watch, “and the progress that has been made on key initiatives over the past year.”
“I am grateful to have had the opportunity to serve as CEO and meet and work alongside the many hard-working and dedicated employees of Turning Point,” said Efremov.
Updated Full-Year Outlook
Turning Point posted third-quarter sales, estimating net sales will be between $106 million and $108 million, net income will be between $10.5 million and $12 million and adjusted EBITDA will be between $23.5 million and $25 million.
The company also updated its full-year 2022 outlook ahead of its Oct. 26 conference call. The company expects:
- Zig-Zag products sales of $186 million to $191 million (versus the previous outlook of $193 million to $200 million)
- Stoker’s products sales of $128 million to $132 million (versus the previous outlook of $127 million to $133 million)
- Consolidated adjusted EBITDA of $96 million to $99 million (versus the previous outlook of $97 million to $103 million)