Scandinavian Tobacco Group (STG) raised its 2026 financial guidance after reporting third-quarter revenue of DKK 2.43 billion ($361.3 million), up 2.1%, and net profit of DKK 294 million ($43.6 million), up 30%. EBITDA before special items increased 18% to DKK 610 million ($90.5 million), while free cash flow before acquisitions rose 154.3% to DKK 440 million ($65.3 million). CEO Niels Frederiksen attributed the improved outlook partly to higher-than-expected tariff and duty refunds, while noting that the quarter benefited from shipment timing that will reverse in the fourth quarter.
STG now expects a 14% to 15.5% EBITDA margin before special items, compared with its previous forecast of 13% to 14.5%, and earnings per share of DKK 9.5 to DKK 11.5 ($1.43 to $1.73), up from DKK 9 to DKK 11 ($1.35 to $1.65). Its sales-growth forecast at constant currencies narrowed to a decline of 2% to no change, from a previous range of a 2% decline to 2% growth. Free cash flow guidance remains DKK 950 million to DKK 1.2 billion ($142.5 million to $180 million). The company also reported continued growth in handmade cigars and said its U.S. branded business gained market share in the first nine months of 2026.
