The Company Concluded the Year With Revenue Doubling, Alongside Substantial Improvements in Gross Profit Margins and Net Income
FORT LAUDERDALE, FL, April 19, 2024 (GLOBE NEWSWIRE) -- via NewMediaWire - VPR Brands LP (OTCQB: VPRB), a leader in the innovation and monetization of intellectual properties within the electronic cigarette and vaporizer sector, today announced its financial results for the fiscal year ended December 31, 2023. Demonstrating significant growth and enhanced operational efficiency, the company concluded the year with revenue doubling, alongside substantial improvements in gross profit margins and net income.
Annual Financial Highlights:
- Revenues: Increased significantly to $9,853,825, up from $4,927,616 in 2022. The growth is attributed to increased customer sales and the introduction of new royalty revenue streams.
- Net Income: Reported a net income of $3,812,605, reversing a net loss of $203,697 in 2022, showcasing the company's effective strategies and operational execution.
- Cost of Sales: Rose to $4,972,497, reflecting the increased sales volume, with gross margins impressively expanding to 50.3% in 2023 from 33% in 2022, driven by higher-margin direct-to-consumer online sales and higher wholesale margins.
- Operating Expenses: Increased to $2,210,072 as compared to $1,828,195 in 2022 due to enhanced advertising activities and additional advertising to support the expanded sales and revenue base.
- Cash Flow from Operations: Improved to a positive $3,481,356 in 2023 from a negative $312,423 in 2022, indicating robust operational health and enhanced cash management.
Liquidity and Capital Resources:
- Total Assets: Grew to $3,191,246 from $1,632,528 in 2022, bolstered by increased Cash, Inventory, and Accounts Receivable from the growth in sales.
- Total Liabilities: Decreased to $2,576,936 from $3,951,020 in 2022, significantly reducing the company's debt profile and enhancing financial stability.
Other Financial Updates:
- Other Income: Other income netted $1,141,350 in 2023, mainly from a litigation settlement which contributed $2,400,172.
- Financing Activities: Net cash used in financing activities was $1,706,517 in 2023, a pivot from net cash provided of $332,254 in 2022, reflecting a strategic reduction in debt levels.
Executive Comments:
Kevin Frija, CEO of VPR Brands LP, stated, "2023 was a pivotal year for VPR Brands. We've successfully optimized our patent and trademark portfolio and expanded our market presence, resulting in historic revenue levels and profitability. Our strategic focus on Intellectual Property Monetization, including licensing has positioned us strongly within the competitive landscape."
Dan Hoff, COO, added, "Our operational achievements this year reflect our commitment to excellence and innovation. With new products in the pipeline and an expanding rapidly into new segments through licensing, we are poised for continued growth, diversification and are focused on delivering sustainable value to our shareholders."
About VPR Brands LP:
VPR Brands is a technology company and an IP holding company engaged in various monetization strategies of its U.S. patents covering electronic cigarette, vaporizer technologies, and related accessories. The company designs, develops, markets, and distributes products oriented towards the cannabis markets, including the ELF and HONEYSTICK brand of vaporizers and DISSIM Lighters. VPR Brands is actively enforcing its patents and exploring and monetizing licensing opportunities.
For more information about VPR Brands, please visit www.vprbrands.com
Forward-Looking Statements:
This news release contains statements that involve expectations, plans, or intentions, and other factors discussed from time to time in the company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. The company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Corporate Communications:
For further information, please contact Kevin Frija at kevin.frija@vprbrands.com.
