An e-cigarette manufacturer that was valued at $3 billion last year is struggling to recoup some of its $1.8 billion in sales.
The e-cig giant, the largest e-liquid brand in the US, reported its first quarterly loss in more than two years Thursday.
The company reported a $1 million loss for the third quarter and an adjusted loss of $1,700 for the full year.
Its shares were down more than 5% at $2.50 a share on the Nasdaq.
In a statement, the company said it was “disappointed” with the results and it is “committed to our mission of delivering innovative solutions for the millions of people who use e-cigarettes to quit smoking.”
The company said that in the third quarters of 2018, the e-cigs accounted for less than 1% of the company’s overall sales.
Its main competitor, Altria, has been in the ejuice business for decades and is valued at more than $300 billion.
Its main competitor is Johnson & Johnson, which makes menthol cigarettes.
E-cigarette sales rose in 2018, according to market researcher IRI.
But their growth was slower than the industry as a whole, which was growing faster.
In the first three months of 2019, the number of units sold rose to 3.4 million units.
That’s up from 2.6 million units in the first quarter of 2018.
E-cig sales grew by 8% year-over-year in 2018.
The company said its quarterly results also include a loss on the sale of its flagship, the Altria line of e-juices.
The Altria brand sells more than 50% of its e-products in the United States, according an industry source.
The brand’s share price has been falling steadily in recent years.
The share price of the Altara brand fell 10% in 2018 to $18.20 a share.
The stock is down about 15% this year.