Hoping to increase shareholder value and stimulate growth, Scandinavian Tobacco Group (STG) has launched a new group-wide program tilted “Fueling the Growth.”
This new program supports the mid-term outlook of an average 3-5 percent annual organic growth in adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA).
“Fueling the Growth” has five initiatives:
- Organizational restructuring to ensure an agile organization
- Realignment of commercial resources in four new divisions
- Optimization of the global logistics set-up
- Establishment of a global procurement organization
- Improved operational cost efficiency through reduction of production complexity
Savings from this new program will be front-loaded and will incur non-recurring costs. “Fueling the Growth” is expected to have a full-year run-rate effect by the end of 2021. In order to fulfill parts of this initiative, STG will be cutting 100-120 white collar positions across the organization. The financial impact of the acquisition of Thompson Cigars is not included in the financial estimates for the program [read more here].