For the first nine months of 2025, Scandinavian Tobacco Group A/S (STG) reported net sales of DKK 6.7 billion ($1.1 billion), EBITDA margin of 19.9%, and free cash flow before acquisitions of DKK 448 million ($71.2 million), up from DKK 327 million ($52.3 million) a year earlier. STG reported third-quarter 2025 net sales of DKK 2.4 billion ($384 million), with organic growth flat year-on-year and EBITDA before special items at DKK 519 million ($83million), reflecting a 22% margin versus 23.4% last year.
The company said results were broadly in line with expectations, though exchange rate pressures weighed on reported sales. Growth was recorded in Handmade Cigars and Next Generation Products, offset by declines in Machine-Rolled Cigars and Smoking Tobacco. CEO Niels Frederiksen noted that while market conditions remain challenging, the group saw stabilization in handmade cigars and growth in nicotine pouches. However, market share in machine-rolled cigars was affected by the rollout of STG’s new global SAP system.
The company narrowed its full-year guidance to reflect better visibility heading into year-end and the effect of USD movements. STG plans to unveil its next five-year strategy on November 20, outlining growth priorities and stakeholder value initiatives.
