Author: Taco Tuinstra

  • Slovenia Bans Flavors and Smoking Rooms

    Slovenia Bans Flavors and Smoking Rooms

    Photo: Taco Tuinstra

    The government of Slovenia has banned most flavorings in electronic nicotine delivery systems such as e-cigarettes and tobacco-heating products, reports Euractiv. The only flavors still permitted are tobacco and mint.

    “There is mounting research showing that among adolescents who otherwise do not smoke, the use of electronic cigarettes raises the likelihood of them starting to smoke regular cigarettes by up to four times,” Health Minister spokesperson Valentina Prevolnik Rupel was quoted as saying.

    The government has also prohibited smoking rooms in public places such as bars and airports, as ventilation, filtration and other technologies have proven ineffective against exposure to tobacco smoke, according to Rupel.

    To discourage black market sales of flavored products, the government intends to introduce new rules prohibiting individuals from selling or importing tobacco products in bulk.

    Every year, 3,100 people die from smoking in Slovenia, according to Health Ministry data.

  • Organigram Looking for New CFO

    Organigram Looking for New CFO

    Image: fizkes

    Derrick West will transition away from his role as chief financial officer at Organigram Holdings to focus on recovery following surgery later this month.

    Paolo De Luca, current chief strategy officer, has been appointed interim CFO while the company completes a search for a new permanent CFO. De Luca previously served as the company’s CFO between 2017 and 2020.

    “Derrick has left a legacy of stabilizing our financial processes along with the implementation of our ERP and has supported the company through a period of high growth including the acquisitions of our Winnipeg and Lac-Supérieur facilities,” said Organigram CEO Beena Goldenberg in a statement. “We are grateful for his contributions during his time on the board beginning in 2017 and since becoming CFO in 2020 and we wish him well.”

    Organigram Holdings is the parent company of Organigram, a licensed producer of cannabis, cannabis-derived products and cannabis infused edibles in Canada.

    Recently British American Tobacco increased its equity position in Organigram from 19 percent to 45 percent.

  • RLX Technology Reports Challenging Quarter

    RLX Technology Reports Challenging Quarter

    Photo: RLX Technology

    RLX Technology reported net revenues of RMB428.1 million ($58.7 million) in the third quarter of 2023, compared with RMB1.04 billion in the same period of 2022. Gross margin was 24.7 percent in the third quarter of 2023, compared with 50 percent in the comparable 2022 quarter. GAAP net income was RMB172.7 million, down from RMB505.2 million in the prior-year period.

    “The end of the third quarter of 2023 marked one year since the new regulatory framework for the e-vapor industry came into effect,” said Ying (Kate) Wang, co-founder, chairperson and CEO of RLX Technology, in a statement.

    “As a legitimate industry participant, we have remained dedicated to developing our product portfolio to provide adult smokers with compliant, superior-quality products. While we have made some progress with our recovery, we are still facing external challenges, especially the impact of illegal products. We recognize that many users are still unaware of these new regulations, such as flavor restrictions, which has slowed their adoption of the new national standard products.

    “To address these near-term obstacles, we will forge ahead with our core strategy: providing a wide variety of quality, compliant products across an extensive range of price points to meet users’ various needs. Meanwhile, we are making efforts to enhance users’ understanding of the new regulations and collaborating with regulators to combat illegal products and create a healthy and orderly market. As a trusted e-vapor brand for adult smokers, we believe that more users will gradually switch to our products as increased awareness of the new regulations and the dangers of substandard, illegal products rises.”

    “In the third quarter of 2023, we continued to face significant headwinds due to competition from illegal products,” added RLX Technology Chief Financial Officer Chao Lu. “Against this challenging backdrop, we resolutely executed our strategy and focused on improving profitability, which continues to be our top priority.

    “Our strategic cost optimization initiatives have begun to demonstrate positive outcomes, including a consistent reduction in our non-GAAP operating loss and signs of recovery in our non-GAAP net profit margin. Notably, we achieved a second consecutive quarter of positive operating cash flow this quarter, underscoring our business’ resilience in the post-regulatory era. Looking forward, we will remain committed to enhancing our financial performance and delivering sustainable value to our shareholders.”

     

  • Sudhanshu Patwardhan

    Sudhanshu Patwardhan

    Sudhanshu Patwardhan is a medical doctor, nicotine expert and health tech entrepreneur from India, based in the U.K. He works on projects around the world to reduce harm from tobacco, especially among the most disadvantaged tobacco user populations.

    The Forgotten Frontier

    Pieter Vorster and Sudhanshu Patwardhan discuss whether tobacco harm reduction is reaching the Global South.

  • Consumer Groups Critical to THR: Paper

    Consumer Groups Critical to THR: Paper

    Image: mtsaride

    Consumer advocacy organizations play a critical role in ensuring safer nicotine products are available as alternatives for those who use high-risk tobacco products, according to a new briefing paper by the Global State of Tobacco Harm Reduction (GSTHR).

    The absence of consumer perspectives from 10th Conference of the Parties to the Framework Convention on Tobacco Control–which was scheduled to be held in November but has been postponed due to social unrest in the host nation, Panama—will hamper collective efforts to bring an end to the smoking epidemic, according to the GSTHR.

    Consumer advocacy groups are also overstretched and under-resourced, according to the report. During the 12 months prior to the study, the total funding for all of the groups surveyed was only $309,810. None of this money came from tobacco or pharmaceutical companies, despite oft-repeated allegations from opponents of tobacco harm reduction. By contrast, the Campaign for Tobacco Free Kids received $160 million from Bloomberg Philanthropies in 2019 to oppose flavors in nicotine vapes.

    Despite the lack of funding, tobacco harm reduction consumer advocacy organizations have achieved a lot. “From the very early days of simply sharing information on products with peers who hoped to quit smoking, through to the emergence of more organized advocacy efforts, consumers have been central to the development of tobacco harm reduction,” said Jessica Harding, director of external engagement at Knowledge Action Change, in a statement.

    “Consumer advocacy groups play a vital role in maintaining access to safer nicotine products throughout the world and, despite the many obstacles they face, their achievements are impressive.”

    “People who use safer nicotine products and people who smoke are significantly affected by policy responses to tobacco and nicotine, broadly described as ‘tobacco control,’” said Gerry Stimson on behalf of the GSTHR project.

    “They are also the people who would most benefit from tobacco harm reduction. As in other comparable areas of public health, there must be a recognition of the contribution consumer advocacy groups can make to inform decisionmaking at meetings such as COP10. Their experiences are testament to the potential of harm reduction, and they should be heard.”

    Tobacco Reporter’s Stefanie Rossel recently explored the role of consumer advocacy groups in her article “Persistence Pays.”

  • Boycotters Urged to Quit Rather than Localize

    Boycotters Urged to Quit Rather than Localize

    Photo: sezerozger

    Health experts are urging Jordanians to quit smoking rather than switch to local cigarettes as product boycotts gain momentum, reports The Jordan Times

    Following the war in Gaza, consumers in Arab countries have called for boycotts of companies that they perceive to be supporting the Israeli occupation. As a result, Jordanian tobacco product retailers and distributors have reported a modest decline in tobacco sales for some international companies.

    Abdel Rahman Shaher, a respiratory doctor, said the boycotts presented a golden opportunity for Jordanians to protect their health and their values.

    “Quitting smoking has numerous health benefits, including reduced risk of heart disease, lung cancer and respiratory illnesses,” Shaher said. “Jordanians have the chance to not only show their solidarity with Gaza, but also prioritize their own wellbeing and contribute to a healthier, smoke-free future.”

    Jordan has one of the world’s highest rates of tobacco consumption, with more than 66 percent of males smoking, according to Muhammad Anees Abdallah, secretary-general of the Jordanian Society for Anti-Smoking. He noted that Jordanians spend JOD1.6 billion ($2.26 billion) annually on cigarettes, alone. “This figure doesn’t include Jordanians spending on shisha, vape and electronic cigarettes,” Abdallah said.

  • Persistence Pays

    Persistence Pays

    Photo: alisaaa

    Lessons from consumer advocacy groups that successfully fought for vaping regulation

    By Stefanie Rossel

    In the shaping of tobacco control legislation, the consumer is often ignored. Many governments find it easier to deny the health benefits of switching from combustible tobacco products to reduced-risk alternatives and simply ban less harmful nicotine-delivery systems. According to The Global State of Tobacco Harm Reduction, 37 countries currently prohibit the sale of nicotine vaping devices, and many others treat vapes like conventional tobacco products, which means restrictions on public consumption and bans on the promotion of e-cigarettes as safer alternatives to smoking.

    The consumer is typically denied a voice, as is the case at the Conference of the Parties to the World Health Organization Framework Convention on Tobacco Control (FCTC) (COP10), which will be hosted in Panama this November. Consumer advocates will not be allowed to participate in the event, not even as observers. The FCTC Secretariat, meanwhile, discourages treaty signatories from speaking with any group that is even remotely associated with the tobacco business, making interactions next to impossible.

    Despite such restrictions, recent examples show that with persistence, consumer advocacy groups can make a difference. For example, last year, the Philippines, a country with 19.9 million smokers, replaced its 2019 vaping ban with a sensible regulatory framework. Republic Act (RA) 11900, also known as “the vape law,” legitimizes vaping as a strategy for smokers to reduce their health risk, and it lowers the age at which vape products can be legally purchased from 21 to 18. Furthermore, the law moves the authority to regulate vapes and heated-tobacco products from the Philippines Food and Drug Administration (PFDA) to the Department of Trade and Industry. In 2021, the PFDA came under pressure after it was revealed that it had accepted significant funding from Bloomberg Philanthropies, a move that critics said subjected the Philippines’ health policy to foreign influence.

    The adoption of the vape law in the Philippines can largely be attributed to the persistent efforts of consumer organizations in countering misinformation.

    Peter Dator, president, Vapers PH

    Engagement is Key

    Tobacco harm reduction (THR) advocates consider the Philippines’ vape law “a minor miracle” as it prevailed in a region that is strongly influenced by Bloomberg Philanthropies and the WHO, both of which tend to favor prohibitionists tobacco control approaches. Many Southeast Asian countries, including Singapore and Thailand, have banned vape products in line with WHO recommendations.

    “The adoption of the vape law in the Philippines, despite the influence of anti-THR groups, can largely be attributed to the persistent efforts of consumer organizations in countering misinformation,” says Peter Dator, president of consumer advocacy group Vapers PH. “These groups have been instrumental in challenging misconceptions surrounding vaping, advocating for evidence-based harm reduction strategies and ensuring that accurate information reaches policymakers and the public.

    “Through their consistent and dedicated campaigns, consumer organizations have played a vital role in shaping a more informed and balanced perspective on vaping, thereby influencing the decision to overturn the ban and embrace a more pragmatic approach to tobacco harm reduction in a region where such legislation has often been swayed by ideologically driven influences.

    “Vapers PH actively engaged in the process of overturning the vaping ban in the Philippines by taking concrete steps, such as leveraging social media platforms to raise awareness and disseminate accurate information about vaping’s benefits and risks. Additionally, we participated in various forums and public consultations dedicated to the vape bill, providing expert insights and representing the interests of vapers. By actively contributing to public discussions and presenting evidence-based arguments, our group, alongside several other vaping consumer groups here in the Philippines, played a crucial role in influencing the reconsideration of the ban and encouraging a more nuanced approach to vaping regulation.”

    Manufacturers, distributors and retailers are currently working through an 18-month transitory period to comply with the new legislation. Recently, the Philippines released guidelines for flavors, which, according to Dator, focus mainly on preventing their marketing to minors. For example, e-cigarette companies may not give their flavors names that may appeal to children.

    The Importance of Enforcement

    As a representative of consumer advocacy, Dator says he is pleased to see that the bill has taken steps toward regulating the vaping industry in a fairer manner than before. “However, while I appreciate the progress made so far, I believe that there is still more work to be done in terms of implementing these regulations effectively,” he says. “It’s important that the regulatory framework is comprehensive and well enforced, ensuring that manufacturers adhere to quality standards, provide accurate product information and refrain from targeting minors. Additionally, there should be measures in place to monitor and assess the long-term health effects of vaping products as this information is crucial for consumers to make informed decisions about their health.”

    Dator believes the rules should be strengthened to ensure the safety and well-being of consumers. “The ultimate goal should be to strike a balance between providing adults with a potentially safer alternative to traditional smoking while also preventing any unintended negative consequences, particularly among younger individuals,” he says.

    “While the bill has transformed into law, its true impact depends on how well the regulations are enforced and monitored. If the implementation process lacks rigor or faces challenges in terms of oversight and enforcement, there is a notable risk that the objectives of the law could be undermined. Therefore, the success of the law hinges on the commitment to robust implementation strategies that ensure compliance with the intended regulations and prevent any potential subversion of the law’s intent.”

    Sharing information, knowledge and strategies are key, especially in a regional context as what happens in one country may/will impact surrounding countries.

    Nancy Loucas, co-founder, AVCA

    A Resource of Information

    New Zealand, too, has been praised for its regulation of vaping. Unlike Australia, where vape products are available only on prescription, vaping remains legal as a smoking cessation tool under New Zealand’s Smoke-Free Aotearoa 2025 Action Plan, an amendment of the Smokefree Environments and Regulated Products Act (SFEA) from 1990.

    As in the Philippines, consumer advocates helped shape regulation in New Zealand. As the process to regulate vaping under the SFEA got underway, advocates contacted elected officials, health providers and community groups and offered to be a source of information. Members of the Aotearoa Vapers Community Advocacy (AVCA), for example, attended meetings to present science and research.

    “AVCA had an approved vendor list whereby the vendors agreed to equipment and liquid standards to self-regulate the industry,” says AVCA co-founder Nancy Loucas. “We gave this to the government to use as a template.”

    Loucas believes that New Zealand’s comparatively small size and progressive policies made it easier to help shape sensible, evidence-based regulation that recognizes the principle of harm reduction. “Because of the economies of scale, it is much easier to engage with officials here than in Australia, “ she says. “Australia is very conservative—authoritarian—comparatively.”

    Loucas is also executive coordinator of the Coalition of Asia Pacific Tobacco Harm Reduction Advocates, an unfunded grassroots alliance among the THR advocates and their respective organizations in the region.

    She says collaboration among consumer advocacy groups from different countries is beneficial for consumers and consumer groups. “Sharing information, knowledge, strategies are key, especially in a regional context as what happens in one country may/will impact surrounding countries,” she says. “Commiseration and support is also important on a mental health level. Advocacy is not easy, and a burden shared is lighter.”

    The challenges we have been facing for almost a decade is the ignorance of a few control freaks.

    Asa Saligupta, head, ENDS Cigarette Smoke Thailand

    Educating People

    As the head of ENDS Cigarette Smoke Thailand (ECST), Asa Saligupta knows that consumer advocacy can seem like a Sisyphean task. Thailand has one of the world’s strictest vape laws, enacted in 2014. In the runup to the elections, THR activists had high hopes the new administration would lift the country’s ban on vaping. However, despite gaining the most seats in the House of Representatives, the progressive Move Forward Party was blocked from forming a government by allies of the monarchy and military in the Senate.

    Yet Saligupta remains optimistic. “My humble opinion is that no matter who will win the election and who will be our next Prime Minister, the vaping ban will be lifted. One of the delegates already proposed to set up a committee to look into it, and he was supported by enough votes that this bill is already waiting in line at the parliament.”

    While anti-vaping groups like to boast about Thailand’s harsh regulations, the country has a problem with enforcement. Bribery is a big issue. “The challenges we have been facing for almost a decade now is the ignorance of a few control freaks, plus you have to admit we are living in a social media era,” says Saligupta. “We don’t have enough resources to fight them. They kept coming with blatant lies after lies, along with misinformation. Fortunately, the ban does not include possession or the act of vaping unless you vape in a no smoking area. So, for us to go out to the public and tell them that vaping is safer than smoking is not against any laws, yet.” ECST is in touch with its counterparts in the Philippines and hopes to duplicate their accomplishments. “We have talked about copying their laws,” says Saligupta.

    Even as it maintained its ban on vaping, Thailand’s Food and Drug Administration July 2022 took cannabis off its narcotics list, legalizing possession, cultivation, distribution and consumption under certain conditions. Since then, thousands of cannabis shops have opened. However, there’s little support for similarly relaxing vaping restrictions, according to Saligupta. “But of course, we can point out the harm and addiction,” he says.

    ECST has done a lot to get the ban lifted. “We attended many seminars at the parliament; we sent a petition to the Ombudsman,” says Saligupta. “Now the hearing is over, and we are expecting results soon. I also host live casts at the weekend, with more than 100,000 followers, etc. I traveled worldwide to educate people on the situation of vaping in Thailand. Our next step is to wait and see who the government will be. For what it’s worth, I think almost all parties agree that vaping should not be banned but controlled.”

    Beating a Flavor Ban

    Meanwhile, in Europe, the EU is in the process of implementing its 2021 Beating Cancer Plan and preparing to review its Tobacco Products Directive (TPD). In 2022, THR proponents rejoiced when the European Parliament for the first time recognized the THR concept with the adoption of a report by its Special Committee on Beating Cancer (BECA).

    That success can at least in part be attributed to the work of consumer representatives. “Along with our 24 partner associations, I think we played a significant role,” says Damian Sweeney, a partner in the European Tobacco Harm Reduction Advocates (ETHRA).

    “From the beginning of BECA’s mandate in September 2020, we wrote and published articles on the BECA meetings to inform consumers about what was going on. As the meetings progressed and amendments were tabled and discussed, we could see that flavors were under threat. So, along with partners, we wrote to all members of the BECA Committee on three occasions to outline the importance of flavors in the success of vaping products as a harm reduction tool.

    “Another important recommendation to come from BECA—and something we also raised with committee members—was that risk assessments should compare the use of safer nicotine products [SNPs] to smoking. Although we don’t think the final report was specific enough as it said risk assessments should compare safer nicotine products to ‘consuming other tobacco products,’ this was still a positive, as it calls into question the validity of the Scientific Committee on Health, Environmental and Emerging Risks Opinion, which compared risks [of safer nicotine products] to nonsmoking.” 

    Cooperation among consumer advocacy groups is vital, according to Sweeney. “One of the founding principles of ETHRA was to coordinate and amplify the tobacco harm reduction voice in Europe, in support of millions of nicotine consumers,” he says. “One of our biggest strengths is our partner associations and how we work together to further the goals of THR.”

    The ETHRA has recently been busy with the revised TPD, which is expected to be adopted in 2024. “We have been actively involved at every stage of the evaluation,” says Sweeney. “We’ve taken part in numerous calls for evidence, public consultations, and been invited to participate in targeted stakeholder consultations and interviews. As the next iteration of the TPD will impact millions of consumers of safer nicotine products, it is essential that consumers have a voice, and it has been our mission to ensure consumers have that voice.

    “Our message has been simple—safer nicotine products are a popular and effective means to quit smoking and are proven to be substantially less dangerous. Policymakers should consider the opportunities safer nicotine products offer in reaching smoke-free targets and be acutely aware of potential unintended consequences of prohibitive policies, such as flavor bans or high taxation.”

    Recently, the ETHRA wrote to members of the newly formed EU Subcommittee on Public Health (SANT) ahead of the presentation of the Rapporteur’s Draft Report on noncommunicable diseases (NCD). “We highlighted that ‘tobacco use’ was erroneously identified as a risk factor when it should be ‘smoking.’ We also outlined the importance of safer nicotine products in reducing smoking and NCD prevalence. During the meeting, two members of SANT, who were also in BECA, asked that the BECA recommendations on SNPs be incorporated into the final SANT report. So, I’m quietly confident that those positives will be included.” 

    By continually challenging misconceptions, promoting accurate information and participating in public discussions, consumer organizations can help shape a more informed perspective on vaping and other harm reduction strategies, ultimately influencing policy decisions in favor of public health and individual choice.

    Damian Sweeney, partner, ETHRA

    Valuable Lessons

    So what can consumer organizations in other countries learn from their colleagues in the EU, the Philippines and New Zealand?

    “For me, political engagement is one of the most important parts of advocacy,” says Sweeney. “I would encourage other consumer groups to get in contact with their representatives at local, national and EU level to make them aware of the importance of tobacco harm reduction. It’s also important to participate in consultations when restrictive policies on safer nicotine products have been proposed. And, if you are part of a consumer group that is independent of industry, I’d highly advise joining ETHRA as a partner.”

    “Consumer organizations from other countries, like India [which prohibits vaping], can draw valuable lessons from the Philippines’ experience in vaping advocacy,” says Dator. “One takeaway is the importance of unwavering persistence in fighting against misinformation and advocating for harm reduction alternatives. The Philippine example shows that even small efforts, when consistently carried out by a collective of dedicated vaping advocates, can create a significant impact over time. By continually challenging misconceptions, promoting accurate information and participating in public discussions, consumer organizations can help shape a more informed perspective on vaping and other harm reduction strategies, ultimately influencing policy decisions in favor of public health and individual choice.”

    Loucas reminds consumer groups that elected officials work for them. “They should approach them with respect and integrity and present facts—but most importantly, their testimony,” she says. “Humanize the issue.”

    Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.
  • COP10 Postponed

    COP10 Postponed

    Photo: Maksym Yemelyanov

    The Tenth session of the Conference of the Parties (COP10) to the WHO Framework Convention on Tobacco Control (FCTC) and the Third session of the Meeting of the Parties (MOP3) to the Protocol to Eliminate Illicit Trade in Tobacco Products have been postponed to 2024.

    “Following communication received from Panama, the host country of the Tenth session of the Conference of the Parties to the WHO Framework Convention on Tobacco Control  and the Third session of the Meeting of the Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products, it is no longer possible to conduct COP10 and MOP3 in November 2023, as scheduled,” the FCTC wrote on its website.

    The sessions are expected to be held in Panama, as early as possible in 2024, at dates to be confirmed.

    The postponement of COP10 and MOP3 is due to the current security situation in Panama, which has been shaken by mass protests about a government contract that allows a Canadian company to expand its copper mining operations there.

    The Convention Secretariat said it will communicate further details in relation to COP10 and MOP3, as soon as available.

  • KT&G Reports Record Revenue

    KT&G Reports Record Revenue

    Photo: Taco Tuinstra

    KT&G reported record revenue of KRW1.69 trillion ($1.29 billion) for the quarter that ended Sept. 30, 2023. This reflects a 4 percent increase from the same quarter last year. Operating profit rose 0.3 percent to KRW406.7 billion despite cost headwinds.

    Solid performance in combustible business drove the revenue growth as the company’s total combustible revenue, including both overseas and domestic sales, jumped to KRW972.7 billion, a 3 percent increase year-on-year. Operating profit from combustible products recorded KRW269.4 billion, up 0.6 percent year-on-year.

    Overseas combustible business delivered impressive growth across all key metrics, including sales volume and revenue. KT&G’s overseas combustible revenue increased 26.3 percent to KRW321.6 billion, and the sales volume recorded 14.82 billion sticks, up 21 percent year-on-year. The double-digit growth in revenue and sales volume of overseas combustible products was mainly driven by strategic pricing and combined growth across export and overseas subsidiary volumes.

    The heat-not-burn business also recorded a double-digit increase in both domestic and overseas sales figures. KT&G sold 1.45 billion sticks in the domestic market and 2.03 billion sticks in overseas markets, which represents 13.3 percent and 22.3 percent growth year-on-year, respectively.

    In the third quarter, KT&G’s primary focus was on enhancing its financial performance by strengthening the global competitiveness of its core business areas. As part of the effort, KT&G made significant investments in Indonesia and Kazakhstan in September and October.

  • Sales Down at Scandinavian Tobacco

    Sales Down at Scandinavian Tobacco

    Niels Frederiksen | Photo: STG

    Scandinavian Tobacco Group (STG) delivered 3.9 percent negative net sales growth, an EBITDA margin of 26.5 percent and a free cash flow before acquisitions of DKK622 million ($89.36 million) for the third quarter of 2023. For the first nine months of 2023, net sales decreased by 1.8 percent to DKK6.5 billion, the EBITDA margin was 24.6 percent and the free cash flow before acquisitions was positive by DKK602 million.

    Consumer trends for the cigar categories remained unchanged throughout the third quarter, according to STG. Decreasing volumes were partly offset by pricing and increasing sales from growth enablers, such as retail stores, next-generation products and international sales of handmade cigars.

    STG anticipates net sales growth to recover in the fourth quarter, primarily as a result of the positive trend in North America online and retail, along with growth in Europe and comparison to a soft fourth quarter last year. The EBITDA margin is expected to be somewhat lower than in the fourth quarter last year as a result of category and country mix combined with higher investments in the growth enablers and in stabilizing the market share development in Europe branded. The main uncertainties to the full-year expectations remain the volume development in Europe branded and inventory adjustments with customers in the U.S.  

    STG’s board of directors has approved a share buyback program of up to DKK850 million running to the end of February 2025. “With the performance in the third quarter, we are on track to deliver on our revised guidance from August with both cash flow and margin recovering in the quarter,” said CEO Niels Frederiksen in a statement.

    “Although key uncertainties persist, we continue to make good progress in the online business, and the growth enablers are also performing well. Whereas the market share for Europe branded continued to decline, we remain confident that the more aggressive initiatives launched over the past few months will support a stabilization.”