Scandinavian Tobacco Group (STG) unveiled its new five-year strategy, Focus2030, ahead of its Capital Markets Day tomorrow (November 20). The plan aims to strengthen the company’s core machine-rolled and smoking tobacco business in Europe, expand its handmade cigar operations in the U.S., and accelerate growth in the nicotine pouch category.
To support the strategy, STG’s board has adopted new financial ambitions and a flexible shareholder return policy. Targets include a return on invested capital of at least 11% by 2030, low single-digit annual EBIT growth, and free cash flow before acquisitions of at least DKK 1.2 billion ($180 million). The shareholder return framework shifts to a 40–60% dividend payout ratio against adjusted earnings per share, supplemented by share buybacks when leverage allows. Since listing in 2016, STG has returned more than DKK 9 billion ($1.4 billion) to shareholders.
The company also plans DKK 200 million ($30 million) in cost improvements early in the strategy period to bolster efficiency and earnings resilience. CEO Niels Frederiksen said Focus2030 will create long-term value for consumers, employees, and shareholders, positioning STG to drive growth beyond 2030. The Capital Markets Day presentation will be livestreamed from 14:00 to 16:30 CET.
