Smoore annual report: US market sales decline, European market surges by 50%

Smoore International released its 2022 performance report today. According to the financial report, Smoore’s operating income in 2022 was CNY 12.145 billion, a decrease of 11.7% compared to the previous year. After adjustment, the net profit for the entire year was CNY 2.575 billion, a decrease of 52.7% compared to the previous year.

Significant growth in the European market

Out of Smoore’s revenue of around CNY 12.1 billion last year, Europe and other regions accounted for CNY 4.298 billion, with a growth rate of 53.4%. This proportion rapidly increased from 20% in 2021 to 35.4%, indicating a significant contribution from the European market to Smoore’s revenue. In the UK alone, Smoore’s revenue was as high as CNY 2.81 billion, far surpassing that of the US.

In contrast, the revenue from the US was CNY 1.298 billion, and its proportion decreased from 12.2% to 10.7%. The revenue from mainland China was CNY 3.19 billion, and its proportion decreased from 40.2% to 26.3%. Smoore’s efforts in the European market also helped its major clients become the leading vape brands in several European countries.

Decline in sales to enterprise customers, growth in sales to retail customers

One phenomenon is that Smoore’s sales to enterprise customers reached CNY 10.679 billion last year, but its proportion decreased from 91.6% in 2021 to 87.9%.

In contrast, sales to retail customers were around CNY 1.46 billion, with a year-on-year growth of 26.2%, and the proportion increased from 8.4% to 12.1%. This shows that Smoore’s brand is gaining strength. Smoore has developed four major brands, with “SMOORE” as its manufacturing brand, FEELM as its representative for closed atomization technology brand, METEX as its representative for non-burning heating product technology brand, and VAPORESSO as its representative for open atomization product brand.

Disposable vape revenue of CNY 1.9 billion, soaring by 9 times

The most attention-grabbing is that last year, Smoore’s revenue from disposable vape products was CNY 1.9 billion, a year-on-year increase of over 19 times.

Furthermore, this increase was driven by the launch of disposable products in Europe. According to its financial report, Smoore launched new disposable vape products in the European market, and sales achieved rapid growth. In 2022, the revenue from disposable products was CNY 1.93 billion, an increase of 1919% compared to CNY 0.95 billion in 2021. The sales revenue in the second half of the year was CNY 1.611 billion, a year-on-year increase of 1761%.

However, Smoore invested a significant amount in research and development last year. It has more than 1,500 R&D personnel, and its R&D expenses in 2022 amounted to CNY 1.372 billion, a year-on-year increase of 104%, with most of it spent on research into vapes and other areas such as atomization for medical purposes. Its market development expenses were over CNY 90 million last year.
As an absolute leader in the vape industry, Smoore holds six vape licenses.

Regardless of whether it’s Smoore’s annual report or that of other international e-cigarette giants, it’s evident that the European e-cigarette market experienced significant growth last year. With this in mind, this year is an opportune time to seize the market.