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Tag: Moro

  • Scandinavian, JT Complete Break, Moro Transaction

    Scandinavian, JT Complete Break, Moro Transaction

    Scandinavian Tobacco Group completed the sale of its Break and Moro fine-cut tobacco brands to Japan Tobacco for DKK 1.3 billion, or DKK 1 billion after tax. The transaction, effective Oct. 1, includes the transfer of certain inventories to Japan Tobacco, with proceeds from the inventory sale to be included in the group’s free cash flow before acquisitions and divestments.

    Scandinavian Tobacco Group raised its 2026 free cash flow guidance to DKK 1.2 billion-1.4 billion from DKK 950 million-1.2 billion. The company said the divestment will be dilutive to earnings but maintained its 2026 guidance for reported net sales growth at constant currencies, EBIT margin before special items, and adjusted earnings per share.

  • JT Acquires BREAK, Moro to Expand Combustibles in Europe

    JT Acquires BREAK, Moro to Expand Combustibles in Europe

    Following yesterday’s (July 22) announcement that Japan Tobacco Inc. was acquiring the BREAK and Moro fine-cut tobacco brands from Scandinavian Tobacco Group, the company said the deal is intended to strengthen its combustible tobacco business and support its long-term growth strategy. JT said expanding its fine-cut portfolio in Western Europe will improve returns in its combustibles business, reinforce its position in a key market, and help fund continued investment in reduced-risk products. The company added that the acquisition reflects its disciplined capital allocation strategy and is not expected to have a material impact on its financial performance.

  • STG Sells Fine-Cut Tobacco Brands to JT

    STG Sells Fine-Cut Tobacco Brands to JT

    Scandinavian Tobacco Group agreed to sell its fine-cut tobacco brands BREAK and Moro to Japan Tobacco Inc. for €176 million, representing a pre-tax enterprise value of approximately DKK 1.3 billion ($195 million). The transaction, which is expected to close by year-end pending customary approvals, includes brands primarily sold in Germany. BREAK and Moro accounted for about 4% of STG’s 2025 reported net sales and gross profit before special items, and approximately 6% of EBITDA before special items. Fine-cut tobacco represented around 12% of STG’s total 2025 sales.

    STG said the divestment supports its Focus2030 strategy by allowing the company to concentrate on higher-priority growth categories while transferring the brands to an owner better positioned to develop them. CEO Niels Frederiksen said proceeds from the deal will be used to reduce debt, lower leverage, and increase financial flexibility. The agreement also includes a contract manufacturing arrangement with JT for up to three years as STG reviews its manufacturing footprint and efficiency needs.

    The transaction is expected to reduce STG’s leverage ratio below its 2.5x target level at completion and will positively impact free cash flow through the transfer of inventories to JT. While the deal is expected to be dilutive to earnings, STG said it does not anticipate an impact on its 2026 guidance for reported net sales growth or EBIT margin before special items.