Scandinavian Tobacco Group A/S

STG

Equity

ISIN DK0060696300 / Valor 31183609

Nasdaq Copenhagen Equities (2026-03-27)

DKK 65.80-2.95%

Scandinavian Tobacco Group A/S
UMushroom community rating:

0.00 0 votes No rating yet

NegativeNeutralPositive

About company

Scandinavian Tobacco Group A/S is a leading global manufacturer and distributor of cigars, pipe tobacco, and fine-cut tobacco products. With a history spanning over 250 years, the company has established itself as a key player in the tobacco industry, known for its premium offerings that emphasize quality and craftsmanship. The Group operates in a competitive market characterized by declining volumes, which necessitates a strategic focus on innovation and consumer experience to maintain its market position. Scandinavian Tobacco Group's portfolio includes a wide range of products designed to cater to diverse consumer preferences, leveraging its expertise in creating distinctive textures, flavors, and aromas. The company continues to adapt its strategies to ensure growth and competitiveness in the evolving tobacco landscape.

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

Quarter at a glance

Q3 2025 reported net sales DKK 2,357m (-3.0% y/y, FX negative), organic +0.3%. Nine‑month net sales DKK 6,692m, organic -4.0% YTD.

Profitability

EBITDA before special items Q3: DKK 519m (22.0% margin) vs 23.4% in Q3 2024. 9M EBITDA margin 19.9% (vs 22.0% LY). Adjusted EPS Q3 DKK 3.4 (Q3 2024: 4.1); 9M adjusted EPS DKK 8.2.

Cash flow and leverage

Free cash flow before acquisitions Q3: DKK 173m (9M: DKK 448m). Net interest‑bearing debt DKK 5,571m, leverage ~2.9x (expect modest improvement in Q4 but above 2.5x target).

Product and regional trends

By product in Q3: Handmade cigars +6% organic, Machine‑Rolled Cigars & Smoking Tobacco -4% organic, Next Generation Products +23% organic (XQS pouch brand +75% organic in Q3). By division Q3 organic: Europe Branded -3%, North America Branded & RoW 0%, North America Online & Retail +4%.

One‑offs and special items

Special items in Q3 of DKK 41m, mainly ERP (OneProcess/SAP roll‑out) DKK 31m and Mac Baren integration DKK 10m; these have impacted margins and some supply stability (notably machine‑rolled cigars).

Guidance update

Full‑year 2025 ranges narrowed: reported net sales DKK 9.1–9.2bn; EBITDA margin 19.5–20.5%; free cash flow before acquisitions DKK 0.8–1.0bn; adjusted EPS DKK 10–12. Guidance assumes no new acquisitions and exchange rates as of report date.

Outlook and key risks

Management flags main uncertainties as US consumer sentiment, down‑trading and retailer inventory decisions across categories, and USD/DKK moves (10% USD change ≈ ~5pp impact on reported net sales).

Strategy and next steps

Group to present updated five‑year strategy and Capital Markets Day on 20 November 2025; management emphasises growth enablers (handmade cigar exports, US retail superstores, nicotine pouches) which delivered double‑digit organic growth in Q3.

Summarized from source with an LLMView Source

Key figures

-34.9%1Y

-50.9%3Y

-46.5%5Y

Performance

41.4%1Y

31.4%3Y

31.3%5Y

Volatility