Juul cut its valuation to $10 billion and lost $423 million in the first half of the year


According to the Wall Street Journal, the U.S. e-cigarette brand Juul has lowered its internal valuation to $10 billion, in sharp contrast to the $38 billion estimated two years ago when Altria took a stake.

In December 2018, Altria, a tobacco giant, acquired 35% of Juul’s shares with a valuation of US $38 billion, pushing the valuation of this start-up e-cigarette company to its peak. However, due to the outbreak of e-cigarette popularity among American teenagers and the implementation of flavoring ban by FDA and various states, Juul’s valuation has been declining.

Juul cut its valuation to $10 billion and lost $423 million in the first half of the year

Juul was valued at about $20 billion in January. In May, the company cut its internal valuation by 35 per cent to about $13 billion, and a few days later proposed plans to cut about a third of its staff. In early September, Juul said it was planning another round of massive layoffs and was considering suspending sales in continental Europe and Asia, which would mean exiting 11 countries and focusing on its core markets, the US, Canada and the UK.

Juul’s chief executive, K.C. crosswaite, said in a memorandum released on Thursday that the company was valued at $67.64 per share, about $10 billion, and a loss of $423 million in the first half of the year.

With the help of Altria, Juul has submitted a PMTA application to FDA before September 9, and temporarily obtained the qualification to continue to sell in the U.S. market.



Source link

Leave a Reply