Scandinavian Tobacco Group reported a 1.8% decline in full-year 2025 net sales to DKK 9.0 billion ($1.4 billion), with organic growth down 3.1%, or -1.8% excluding discontinued third-party nicotine pouch distribution in its online business. EBITDA margin before special items was 19.8%, in line with guidance, while free cash flow before acquisitions fell to DKK 595 million ($95.2 million) due to delayed receivables linked to a new ERP rollout in Europe. Adjusted EPS declined to DKK 10.8 from DKK 13.7 ($1.73 from $2.19) a year earlier. The board will propose an ordinary dividend of DKK 4.50 ($0.72) per share, representing a 42% payout ratio. In the fourth quarter, net sales fell 4.6% to DKK 2.3 billion ($368 million), with margin pressure driven by product mix shifts toward nicotine pouches and increased promotional spending in North America.
For 2026, the group expects reported net sales growth at constant exchange rates of between -2% and 2%, EBIT margin before special items of 13.0%–14.5%, free cash flow before acquisitions of DKK 950 million to DKK 1.2 billion ($152 million to $192 million), and adjusted EPS of DKK 9–11. Management said 2026 will focus on earnings stabilization under its Focus2030 strategy, with continued investment in handmade cigars and nicotine pouches, while working capital is expected to normalize in the first half following the ERP-related delays.
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