Scandinavian Tobacco Group Releases Third Quarter 2019 Report

Scandinavian Tobacco Group

The third quarter 2019 financial report from Scandinavian Tobacco Group (STG) is out and shows that the company has delivered net sales of DKK 1,846 million and EBITDA (earnings before interest, tax, depreciation and amortization) before special items of DKK 446 million.

In the third quarter, STG delivered positive organic growth in EBITDA of 5.4 percent with EBITDA margins improving by 1.9 percent, driven mostly by region smoking tobacco & accessories and the company’s North American branded business, General Cigar Company. Organic growth in net sales was down by 4.5 percent, driven by all of the company’s divisions. In the first nine months of 2019, the company reported negative organic net stales growth of 2.4 percent and organic EBITDA growth of 5.8 percent, generating a free cash flow before acquisitions of DKK 819 million and an EPS (earnings per share) of DKK 4.7. EPS adjusted for special items were DKK 5.9.

Niels Frederiksen, CEO of Scandinavian Tobacco Group, commented: “In the third quarter of the year we deliver organic EBITDA growth of 5.4 percent, continued margin improvements and a strong free cash flow despite a disappointing development in organic net sales. This follows better than expected progress from our transformational program Fuelling the Growth and continued cash flow focus across our business. During the quarter we were also able to announce our intention to acquire Royal Agio Cigars; a significant step in support of our ambition to become the undisputed leader in cigars and pipe tobacco.”