Scandinavian Tobacco Group (STG) released its 2024 annual report today, reporting a sales gain of 5.4%, while net profits were down by more than 20%. One of the biggest cigar companies in the world, it saw a 6% sales increase for the year to 9.2 billion Danish kroner ($1.3 billion), compared to 8.7 billion kroner in 2023. Net income, however, dropped for the second straight year to 940 million kroner ($136 million) from 1.2 billion kroner in 2023.
Last year “was another challenging year with a volatile business environment,” wrote chief executive officer Niels Frederiksen and chairman Henrik Brandt. “The global market for handmade cigars remains dominated by U.S. consumption.”
Handmade cigars accounted for 36% of STG’s 2024 revenues, while machine-made cigars and smoking tobacco were 48%.
