Scandinavian Tobacco Group (STG) delivered net sales of DKK8.01 billion ($1.28 billion) and EBITDA before special items of DKK1.83 billion in fiscal year 2020. This corresponds to 6.6 percent organic growth in net sales and 14 percent organic growth in EBITDA. Net profit decreased to DKK678 million from DKK748 million.
While the Covid-19 pandemic created significant challenges across the entire value chain, STG benefitted from its strong online presence combined with increased consumption of handmade cigars in the U.S. The integration of Agio Cigars delivered the expected synergies and the company’s Fueling the Growth program was completed one year ahead of time.
“In a challenging year, we delivered a satisfactory financial performance,” said STG CEO Niels Frederiksen, in a statement accompanying the presentation of the company’s annual report.
“We saw solid operational performance across all three divisions, and we continued to deliver on all major efficiency initiatives ahead of time, but we also benefitted from an increased demand for handmade cigars in the U.S. A genuine team effort.”
In a challenging year, we delivered a satisfactory financial performance.
The board of directors proposes an ordinary dividend of DKK6.50 per share for 2020, an increase of 6.6 percent compared to the ordinary dividend for 2019. This will be supplemented by a share buyback program of up to DKK600 million in 2021.
STG expects to generate organic EBITDA growth of more than 7 percent for the full year 2021.