Scandinavian Tobacco Group (STG) has released its second quarter financial report for 2019, showing a 0.9 percent drop in organic growth and net sales amounting to DKK 1,818 million ($269.51 million) for the quarter.
The report showed the EBITDA (earnings before interest, taxes, depreciation, and amortization) before special items amounted to DKK 398 million ($59 million), an organic growth of 5.5 percent. EBITDA margin before special items was 21.9 percent, showing a margin improvement of 1.2 percent points. In total, free cash flow before acquisitions amounted to DKK 243 million.
In the second quarter, STG saw 1.6 percent organic growth in net sales in North America online and retail, which was offset by negative organic growth in the net sales in North America branded, region machine-made cigars and region smoking tobacco and accessories of 4.2 percent, 1.4 percent, and 1.6 percent, respectively. This resulted in the 0.9 percent decline in organic growth. EBITDA margins did, however, improve in North America online and retail, region machine-made cigars and region smoking tobacco and accessories, but still declined in the company’s North America branded business.