Turning Point Brands switches to KPMG as new auditor

In a recent move to align with its evolving operational and financial requirements, Turning Point Brands, Inc. has appointed KPMG LLP as its new independent registered public accounting firm for the fiscal year ending December 31, 2025. The decision was announced following the dismissal of RSM US LLP on March 7, 2025, by the Audit Committee and Board of Directors of the tobacco company. With a market capitalization of $1.05 billion and impressive gross profit margins of 56%, InvestingPro data shows the company maintains strong financial fundamentals, including a healthy current ratio of 4.42.

RSM US LLP had been auditing Turning Point Brands since before its initial public offering in 2016. However, the Board determined that a change was necessary considering the company’s growth. The previous auditor’s reports on the company’s consolidated financial statements for the past two fiscal years did not contain any adverse opinion or disclaimer of opinion. However, the report dated March 6, 2025, identified a material weakness in internal control related to information technology general controls, which did not result in a restatement of the financial statements. According to InvestingPro analysis, the company maintains a "GOOD" overall financial health score, with annual revenue of $360.66 million and operates with a moderate level of debt, as evidenced by its debt-to-equity ratio of 1.39.

There were no disagreements or reportable events between Turning Point Brands and RSM US LLP that would have impacted the audit reports, except for the mentioned material weakness. RSM US LLP has provided a letter to the SEC, dated March 11, 2025, confirming their agreement with the statements made by Turning Point Brands in the Form 8-K. For deeper insights into Turning Point Brands’ financial health and performance metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which provides detailed analysis of the company’s valuation, growth prospects, and financial stability.

The engagement of KPMG LLP comes after the Audit Committee’s approval on March 7, 2025. Prior to their appointment, neither the company nor anyone acting on its behalf had consulted KPMG LLP regarding any accounting principles or transactions that would have influenced their decision-making process.

This strategic change in auditors is part of Turning Point Brands’ continuous effort to maintain robust financial management and reporting practices. The information disclosed in this article is based on the company’s recent SEC filing.

In other recent news, Turning Point Brands Inc (NYSE:TPB). reported its fourth-quarter 2024 earnings, showcasing a significant earnings per share (EPS) of $0.98, surpassing the forecast of $0.70 by 40%. Despite this earnings beat, the company’s revenue of $93.7 million fell short of the anticipated $102.28 million. The company has set its 2025 adjusted EBITDA guidance between $108 million and $113 million, reflecting confidence in continued profitability. Turning Point Brands also reported an annual sales increase of 11% to $360.7 million, with the fourth quarter seeing a revenue rise of 13%. The company’s adjusted EBITDA for the year grew by 12% to $104.5 million. Analysts from Craig Hallum Capital Group and Oppenheimer have shown interest in the company’s strategy for expanding its modern oral product segment. The company is focusing on expanding its market share in this category, expecting to generate $60 million to $80 million in combined revenue from its modern oral brands in 2025. Additionally, the company has initiated a share repurchase program, acquiring $880,000 worth of shares in the quarter.

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