Scandinavian Tobacco Group A/S (STG) reported Q2 2025 net sales of DKK 2.4 billion ($384 million), down 0.2% year-on-year, with organic sales slipping 4.1%. EBITDA before special items was DKK 499 million ($79.8 million), reflecting a margin of 21.1%, compared with 24.5% a year earlier.
CEO Niels Frederiksen said performance was affected by tariffs, product mix, and the discontinued distribution of ZYN in the U.S., but noted gains in handmade and machine-rolled cigars, as well as double-digit growth in nicotine pouch brand XQS.
Despite margin pressure, STG reaffirmed its full-year 2025 guidance, targeting net sales of DKK 9.1–9.5 billion ($1.46 billion to $1.52 billion), an EBITDA margin of 18–22%, and free cash flow of DKK 0.8–1.0 billion ($128 million to $160 million).
