Scandinavian Tobacco Group Publishes Interim Report for Q1 2025.

Scandinavian Tobacco Group A/S published its interim report for 1 April - 30 June 2025. The report is available on the company's website along with the annual report and company announcement. For further information, please contact Torben Sand or Eliza Dabbagh.

Scandinavian Tobacco Group A/S (STG A/S) has published its interim report for the period ending 30 June 2025, providing insights into the company's financial performance during the second quarter. The report, available on the company's website, highlights key financial metrics and strategic developments.

Financial Performance

For the second quarter of 2025, STG A/S reported net sales of DKK 2.4 billion, representing a 4.1% organic net sales growth compared to the same period last year. The company's EBITDA margin before special items was 21.1%, down from 24.5% in the same period in 2024. The adjusted EPS for the quarter was DKK 3.3, while free cash flow before acquisitions stood at DKK 119 million.

The company attributed the decrease in net sales to a combination of factors, including the discontinuation of ZYN distribution in the US and lower sales from contract manufacturing and accessories in the Australian market. However, organic growth was driven by the integration of the Mac Baren business and strong performance in handmade cigars and machine-rolled cigars & smoking tobacco categories, with the nicotine pouch brand XQS continuing to deliver double-digit growth.

Strategic Developments

The report also highlighted strategic priorities and market developments. CEO Niels Frederiksen expressed satisfaction with the company's focus on delivering on strategic priorities despite challenging market conditions. The integration of the Mac Baren business is on track to create substantial value, and market positions in machine-rolled cigars have stabilized. The company is also updating its strategy for the next five years to 2030.

Full-Year Expectations

For the full year 2025, STG A/S maintains its financial expectations. The company expects reported net sales to range between DKK 9.1 billion and DKK 9.5 billion, with an EBITDA margin before special items of 18% to 22%. Free cash flow before acquisitions is expected to be between DKK 800 million and DKK 1 billion, while adjusted EPS is expected to range between DKK 10 and DKK 13.

Market Uncertainties

The biggest uncertainties to these expectations include market developments, consumer behavior, and pricing for handmade cigars in the US, as well as the development of the USD exchange rate. A 10% change in the USD/DKK exchange rate could impact group net sales by approximately 5 percentage points, with EBITDA margins being only marginally impacted.

Contact Information

For further information, investors can contact Torben Sand, Director of IR & Communication, at phone +45 5084 7222 or torben.sand@st-group.com, or Eliza Dabbagh, IR & Communications, at phone +45 5080 7619 or eliza.michael@st-group.com. A conference call is scheduled for 28 August 2025 at 10.00 CEST.

References

[1] https://www.globenewswire.com/news-release/2025/08/27/3140201/0/en/STG-A-S-Interim-consolidated-financial-statements-of-Scandinavian-Tobacco-Group-A-S.html
[2] https://www.marketscreener.com/news/scandinavian-tobacco-group-a-s-reports-second-quarter-2025-results-and-reaffirms-expectations-for-fu-ce7c50dede8bf02c
[3] https://www.globenewswire.com/news-release/2025/08/27/3140203/0/en/STG-Global-Finance-B-V-Interim-Report-Scandinavian-Tobacco-Group-A-S.html