These list prices often provide substantial opportunities for wholesalers to drive their own profit by increasing inventories of manufacturers’ key brands in advance of a list price increase. The result inevitably distorts short-term wholesaler purchasing trends and associated market share calculations based off these wholesale shipments. It is also important to note that most retailers typically do not have the physical space or liquidity required to capitalize on the benefits of buying large amounts of inventory before a price increase is enacted. Retailers tend to order to replace the inventory purchased by consumers on an as-needed basis, and as such, retail shipments are a better indicator of consumer purchases. Given Liggett implemented a price increase earlier in the third quarter, our third quarter wholesale numbers reflect a temporary deloading of our brand portfolio by wholesalers relative to those major manufacturers that took pricing at the end of the third quarter.
Over the longer term, wholesale and retail shipment trends, inevitably convert and that is reflected in the fact that both Liggett’s wholesale and retail shipments are outperforming the industry on a year-to-date and trailing 12-month basis. With that in mind, I will now turn to the consolidated tobacco financials for Liggett Group and Vector Tobacco. For the three months ended September 30, 2023, revenues declined 3.7% to $364.1 million from $378 million in the third quarter of 2022. This decline was attributable to the decline in wholesaler shipment volumes, partially offset by an 8% increase in pricing. For the nine months ended September 30, 2023, revenues increased to $1.064 billion, up 0.2% from the corresponding period in 2022. This reflects a 6.7% increase in pricing offset by a 6% decrease in wholesale shipment volumes.
Liggett’s operating income for the three months ended September 30, 2023, increased 7.6% and to $94.8 million compared to $88.1 million in the corresponding 2022 period. For the nine months ended September 30, 2023, Liggett’s operating income declined by $5.5 million or 2.2% to $248.5 million compared to $254.1 million in the corresponding 2022 period. The decline in operating income for the nine-month period was the result of a one-time $18 million charge in the second quarter which related to an agreement with the state of Mississippi to settle a long-standing dispute over our 1996 settlement agreement. In connection with this settlement in September 2023, the company recovered a $24 million bond it had previously posted to pursue an appeal.
Tobacco adjusted EBITDA in the third quarter increased 7.4% to $96.3 million compared to $89.6 million for the corresponding prior year period. For the nine months ended September 30, tobacco adjusted EBITDA increased 5.6% to $271 million compared to $256.6 million for the corresponding prior year period. Liggett’s third quarter adjusted operating income increased 7.6% to $94.8 million compared to $88.1 million in the prior year period and our operating margins also grew. Our third quarter adjusted operating income was 26% of revenues, which represents an increase of approximately 270 basis points compared to the third quarter of 2022 and an increase of approximately 55 basis points sequentially. On the regulatory front, we expect a final ruling on menthol within the next few months.
As we have previously discussed, while we have always supported reasonable regulation based on sound scientific evidence, we remain firm in our position that prohibition is not the right answer as it inevitably drives unintended consequences such as the growth of illicit unregulated market. We anticipate any final ruling that includes a ban on menthol will be vigorously challenged by the industry. In summary, the operational and financial performance of our tobacco business remains strong and our retail market share gains and profit growth validate our long-term strategy and competitive advantages in the discount segment. Most importantly, our strategy builds on our foundation for long-term earnings growth. While we are always subject to industry, regulatory and general market risk, we are confident that our strategy, management team and infrastructure position us well to maintain our momentum.
Thanks for your attention. And back to you Howard.
Howard Lorber: Thank you, Nick. We are pleased with our results as well as our long-standing practice of paying a quarterly cash dividend. It is our expectation that this dividend policy will continue. Now, operator, please open the call for question.
Operator: Okay, sir. [Operator Instructions] We do have a question from Karru Martinson, Jefferies.
