Scandinavian Tobacco Group A/S

STG

Equity

ISIN DK0060696300 / Valor 31183609

Nasdaq Copenhagen Equities (2024-11-22)

DKK 97.40+0.72%

Scandinavian Tobacco Group A/S
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About company

Scandinavian Tobacco Group A/S is a leading global player in the tobacco industry, specializing in cigars, pipe tobacco, and fine-cut tobacco. With a workforce of approximately 10,000 employees, the company boasts a significant presence worldwide, including sales offices in North America and Europe, and distributes its products to around 100 markets. In the United States, Scandinavian Tobacco Group holds a dominant market position in handmade cigars and catalogue and internet sales, primarily through its subsidiaries General Cigar and Cigars International. The company's portfolio comprises around 200 brands, notable among them are cigar brands such as Macanudo and La Gloria Cubana, pipe tobacco brands like Captain Black and Borkum Riff, and fine-cut tobacco brands including Bugler and Bali Shag. Scandinavian Tobacco Group is publicly listed on the Nasdaq Copenhagen, highlighting its status as a major entity in the global tobacco industry.

Summarized from source with an LLMView SourceSector: Consumer Non-Cyclicals

Net Sales Performance

In the first quarter of 2024, Scandinavian Tobacco Group A/S reported net sales of DKK 1,948 million, reflecting a 1% decrease compared to the same period in 2023. The organic net sales growth was negative by 2%, driven by declines in machine-rolled cigars and smoking tobacco, despite positive contributions from handmade cigars and next-generation oral products.

EBITDA Margin

Scandinavian Tobacco Group A/S's EBITDA before special items for the first quarter of 2024 was DKK 335 million, resulting in an EBITDA margin of 17.2%. This represents a decrease from the 24.1% margin reported in the first quarter of 2023. The decline was primarily due to cost increases, changes in category and market mix, and investments in growth initiatives.

Net Profit and Earnings Per Share

The net profit for Scandinavian Tobacco Group A/S in the first quarter of 2024 was DKK 125 million, down from DKK 260 million in the same period last year. Adjusted Earnings Per Share (EPS) also saw a decline, coming in at DKK 1.8 compared to DKK 3.2 in the first quarter of 2023.

Free Cash Flow

Scandinavian Tobacco Group A/S reported a free cash flow before acquisitions of DKK -126 million for the first quarter of 2024, an improvement from DKK -179 million in the first quarter of 2023. The negative free cash flow was influenced by operational performance and changes in working capital.

Financial Guidance for 2024

Scandinavian Tobacco Group A/S has maintained its financial guidance for the full year 2024. The company expects net sales to be in the range of DKK 8.8-9.1 billion, with an EBITDA margin before special items between 22%-24%. Free cash flow before acquisitions is projected to be between DKK 0.8-1.0 billion, and adjusted EPS is anticipated to range from DKK 12.5-14.5.

Summarized from source with an LLMView Source

Key figures

-17.0%1Y

-21.1%3Y

26.3%5Y

Performance

24.7%1Y

28.3%3Y

28.6%5Y

Volatility