Scandinavian Tobacco Group (STG) has released a report detailing the company’s second quarter performance, revealing better than expected results with positive growth in net sales, earnings and free cash flow before acquisitions. STG is attributing its latest financial performance to an increase in consumption and demand for handmade cigars and a strong volume growth in its online business in the U.S.
On the impact of the COVID-19 pandemic on its business, STG reports that the pandemic has had less of an impact on its business than originally anticipated.
“Tobacco consumption across markets and categories has displayed significant resilience and increased consumption of handmade cigars brought on by the change in consumer behavior in the U.S. is likely to continue for the rest of the year,” the company states in the report. “While visibility around the financial outlook remains lower than normal and financial performance in the quarter was positively impacted by phasing in certain markets, the Group raised its 2020 full-year guidance on Aug. 14, 2020 [read more here] based on the year-to-date numbers, a strong performance in the month of July, a successful initial integration of Agio Cigars and assuming no material disruptions to the Groups supply-chain.”