Kaival Brands Reports Revenues of $15.7M Beats EST by $1.06M, up 11% Q2 2022 Y/Y – Philip Morris “Game Changing International Deal” Drives Global Distribution – PM, KAVL

The Kaival Brand Innovations Group Inc (NASDAQ:KAVL) is in the news this morning after it announced its financial results for the fiscal second quarter of the year for the period that ended on April 30, 2022.

While the financial results were an important announcement, it should be noted that the biggest event of the quarter for the company was the signing of a deal with Philip Morris Products SA, which is a fully owned affiliate of the tobacco behemoth Philip Morris International Inc (NYSE: PM). It could well be a game-changer for the company in the long run.

The revenues for the quarter came in at $15.7 million and that actually reflected a decline from the revenues the company achieved in the prior-year quarter.

The gross profits for the quarter came in at $387700. However, investors who are looking into the future of the company ought to take a look at the Philip Morris deal. The deal was for an international licensing agreement with Philip Morris SA by way of which Kaival Brands would get the rights to develop and distribute electronic nicotine delivery system items in markets that are outside of the United States. It should be noted that the extent of the markets that Kaival Brands can move into is going to be dependent on the regulatory situation in individual nations.

The reason it could actually be a game-changer is due to the fact that Kaival Brands is going to be able to get access to the massive distribution network that Phillip Morris commands. Hence, it would be possible for the company to create a wholly new revenue stream that is going to light on capital expenditure. It may be a good idea for investors to add the stock to their watch lists at this point and keep an eye on further developments.