Scandinavian Tobacco Group Raises Full Year 2020 Guidance

Scandinavian Tobacco Group

Scandinavian Tobacco Group (STG) has provided an update on its business as it and the world continue to grapple with the COVID-19 pandemic. In a new press release, the company states that the negative impact of COVID-19 has had lesser of an impact than originally anticipated. In a surprising development, STG reports that tobacco consumption across markets and categories has shown significant resilience through the pandemic.

STG attributes the increase in consumption of handmade cigars and a growth in its online business to consumers in the U.S. being able to work from home during the pandemic. This, along with a stronger than anticipated resilience in sales volumes of machine-made cigars and smoking tobacco and a continued strong internal cost focus, has attributed to a 4.9 percent organic growth in net sales. STG also reports having a 21 percent organic growth in EBITDA and free cash flow before acquisitions of DKK 547 million.