Tag: Scandinavian Tobacco Group

Net Sales up at Scandinavian Tobacco

Image: STG
Scandinavian Tobacco Group (STG) reported a 7.1 percent increase in net sales to DKK2.4 billion ($338.94 million) for the third quarter of 2024, with an EBITDA margin before special items at 23.4 percent. In a like-for-like comparison and excluding exchange rate developments, organic net sales decreased by 0.1 percent.
Discontinuation of distribution of third-party nicotine pouches in the U.S. impacted growth negatively by 1 percent. Growth in the company’s machine-rolled cigars and smoking tobacco and next generation products (NGP) segment was partly offset by a decline in STG’s handmade cigars and accessories business.
The NGP brand XQS increased 72 percent, though the absence of the distribution of nicotine pouches reduced category growth to 2 percent.
The decrease in the EBITDA margin was a result of STG’s investment to support growth of our its NGP portfolio, the currently lower profitability in Mac Baren and the comparison to a strong third quarter 2023.

With the acquisition of Mac Baren, we are in 2024 on track to surpass DKK9 billion in net sales for the first time ever.
Niels Frederiksen, CEO, Scandinavian Tobacco Group
“With the acquisition of Mac Baren, we are in 2024 on track to surpass DKK9 billion in net sales for the first time ever and we expect the Mac Baren acquisition to deliver significant synergies as we implement the integration plan, said STG CEO Niels Frederiksen in a statement.
“In the third quarter market share in machine-rolled cigars in Europe stabilized and began to improve and in particular France showed promising progress. XQS performed well in both Sweden and in U.K. as well as in Denmark where the brand has recently been introduced. The remainder of the growth enablers also delivered growth.
“We remain committed to enhancing shareholder returns and we are about to complete our current share buyback, after which we will have returned almost DKK1.5 billion to shareholders over the course of 2024.”
November 14, 2024
Scandinavian Tobacco Reports Higher Sales

Photo: STG
Scandinavian Tobacco Group (STG) reported net sales DKK2.37 billion ($352.77 million) for the second quarter of 2024, up from DKK2.23 billion for the comparable 2023 period.
Net sales increased 4.8 percent organically driven by handmade cigars and next generation products. The decline rate in machine-rolled cigars & smoking tobacco improved compared with the first quarter.
“The second quarter financial performance supports our expectation for the full year,” said STG CEO Niels Frederiksen in a statement.
“During the past months, we have taken material steps in executing our strategy and to safeguard our financial performance in challenging markets. The new commercial structure has been completed and we have taken additional steps to re-establish our market position in machine-rolled cigars and to improve our cost agility across the group. Further, the acquisition of Mac Baren strengthens our smoking tobacco business where the combination with our existing business will deliver meaningful synergies and good value for our shareholders”.
August 23, 2024
Scandinavian Tobacco to Acquire Mac Baren

Photo: andrey
Scandinavian Tobacco Group (STG) has agreed on the terms and conditions for the acquisition of all the shares of Mac Baren Tobacco Co. from Halberg. On a debt and cash-free basis, the transaction is valued at DKK535 million ($76.87 million). The acquisition will be financed by cash at hand and debt.
A family-owned business founded in 1826, Mac Baren is a global smoking tobacco company. Its portfolio includes pipe tobacco brands such as Mac Baren, Amphora and Holger Danske as well as fine-cut tobacco brands such as Amsterdamer, Choice and Opal. The company also produces and sells nicotine pouches with the brands ACE and GRITT.
Mac Baren’s products are sold in 74 countries with the majority of net sales generated in the U.S., Denmark and Germany. Other key markets include the U.K., France, Spain and Italy. The company is based in Svendborg, Denmark, with production facilities in Denmark and in Richmond, Virginia, USA. The company has approximately 200 full-time employees.
Mac Baren’s reported annual net sales (April 2024) were DKK723 million with a reported EBITDA of DKK85 million. Nicotine pouches accounted for close to 20 percent of net sales with a small negative contribution to EBITDA.

The acquisition will contribute to our already well-established position on the global market for pipe tobacco and will expand our attractive range of brands of the highest standards to our consumers.
Niels Frederiksen, CEO, STG
“I am very pleased that we have taken this important step to strengthen our smoking tobacco business with the acquisition of Mac Baren,” said STG CEO Niels Frederiksen in a statement. “The acquisition will contribute to our already well-established position on the global market for pipe tobacco and will expand our attractive range of brands of the highest standards to our consumers. The combination with our existing business is expected to deliver meaningful synergies when fully integrated and good value for our shareholders.”
“Scandinavian Tobacco Group is acquiring a strong company with a lot of know-how, loved brands and skilled employees,” said Halberg chairman Torben Sorensen. “Since its inception in 1826, a central part of Mac Baren’s DNA has been its focus on new opportunities and ensuring optimal competitiveness. In light of this, it is timely prudence to now let the company become part of a stronger constellation. It is a particular pleasure that ownership has been retained in Danish hands. This is the best possible solution for both Mac Baren and Halberg.”
STG’s full-year financial guidance for 2024, excluding the impact from the acquisition of Mac Baren, remains unchanged. The integration planning period is expected to take up to 120 days
June 27, 2024
Sales Dip at Scandinavian Tobacco

Photo: STG
Scandinavian Tobacco Group reported net sales of DKK1.95 billion ($281.97 million) for the first quarter of 2024, down 1 percent from the comparable 2023 period. Organically, net sales decreased 2 percent.
Organic net sales growth in the company’s handmade cigars and next-generation oral product categories was offset by decline in machine-rolled cigars and smoking tobacco. The EBITDA margin was impacted by declining volumes in a seasonally small quarter, mix changes and investments in growth, according to the company.
The group expects to deliver organic net sales growth and a material improvement in the EBITDA-margin in the second quarter, and maintains its full-year guidance.
“Despite a slow start to the year and the first quarter profitability being impacted by mix, cost inflation and investments in growth, we maintain our expectations for the full year,” said CEO Niels Frederiksen in a statement.
“Entering the second quarter, we expect the net sales development to improve and we expect to see a more normalized mix, which will impact profitability and cash-flows positively. In the quarter we have continued to execute our strategy with the opening of three Macanudo concepts stores and investments in our growth initiatives. Our growth enablers constituted around 11 percent of net sales in the quarter.”
May 3, 2024
STG Results ‘in Line with Expectations’

Photo: STG
Scandinavian Tobacco Group (STG) delivered net sales of DKK8.7 billion ($1.27 billion) in 2023, down slightly from the previous year.
For the fourth quarter of 2023, net sales were DKK2.3 billion. Organic growth of 5 percent for net sales was driven by the group’s “growth enablers,” which in the fourth quarter accounted for close to 10 percent of group net sales, as well as an improved performance in the machine-rolled cigar business in Europe.
The growth enablers comprise three opportunities that currently represent a small proportion of the group’s overall business but that have significant potential to contribute to greater net sales and earnings, according to STG. They are continued retail expansion in the U.S., international growth in handmade cigars and development of next-generation products, such as nicotine pouches and hemp products in key markets.
For the full year 2024, net sales are expected to be in the range of DKK8.8 billion to DKK9.1 billion.
“Despite a challenging consumer environment STG delivered solid results for 2023 due to the commitment and performance of our employees across the globe,” said STG CEO Niels Frederiksen in a statement.
“We continued to execute well on our strategy with two acquisitions, and I am particularly happy to see the progress in our growth enablers, where we saw healthy growth in international handmade cigars, retail expansion and next generation products. As we move into 2024, we are increasing our investments in the growth enablers and we expect 2024 to be a year of growth for STG.”
At the annual general meeting on April 4, 2024, the board of directors will propose an increase in the ordinary dividend of 2 percent to DKK8.40 per share, complementing the up to DKK850 million share buy-back program, which was started in Nov. 2023.
The group’s annual report is here.
March 6, 2024
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.”
November 9, 2023
Volatile Environment Weakens STG Quarter

Niels Frederiksen | Photo: STG
Scandinavian Tobacco Group (STG) posted net sales of DKK2.2 billion ($320.09 million) in the second quarter of 2023, down 2.3 percent from the comparable 2022 quarter. Its EBITDA margin was 23.1 percent, and free cash flow before acquisitions amounted to DKK159 million.
The group reports that it lowered its full-year guidance to net sales between DKK8.7 billion and DKK9 billion following a more volatile than expected trading environment. According to STG, the adjustment reflects ongoing inventory adjustments among customers and distributors, slower regain of market shares in Europe, delays in new store openings in the U.S. and changes in exchange rates.
“On the back of a volatile environment, we had to adjust our guidance even though we are continuing to make good progress on our ambition to grow the size of the company through retail expansion, acquisitions and portfolio diversification,” said STG CEO Niels Frederiksen in a statement.
“In the second quarter, we completed the second acquisition of the year and opened another Cigars International retail superstore. For the remainder of the year, we are focusing on leveraging the current strength of our online business and on building a stronger momentum in our Europe branded business.”
The company expects some recovery in net sales growth for the second half of the year as well as slightly higher free cash flow before acquisitions than in the second half of 2022.
August 29, 2023
Scandinavian Welcomes Employee Rep

Image: Tobacco Reporter archive
The employees of the parent company Scandinavian Tobacco Group have elected a new employee representative for the company’s board of directors, according to a press release.
The newly elected employee representative, Karsten Dam Larsen, replaces the employee-elected representative Trine Eriksen, whose mandate expired in connection with an internal merger of some Danish companies in the group.
Karsten Dam Larsen joins the board of directors effective June 22 and for the remainder of the ordinary term of the current employee-elected board members, which runs until Scandinavian Tobacco Group’s annual general meeting in 2027.
June 23, 2023
Scandinavian Tobacco Reduces Share Capital

Photo: STG
Scandinavian Tobacco Group will reduce its share capital from DKK93 million ($13.4 million) to DKK87 million by canceling some of its treasury shares, the company announced on its website. The board of directors resolved to complete the capital reduction on May 25, 2023, and the reduction of the share capital has been registered with the Danish Business Authority.
Following the capital reduction, the company’s share capital amounts to nominally DKK87 million divided into 87 million shares of DKK1 each. The total number of voting rights is 87 million.
May 25, 2023
STG Reports Modest Sales Increase

Photo: STG
Scandinavian Tobacco Group (STG) reported net sales of DKK1.96 billion ($285.53 million) in the first quarter of 2023, up 1.3 percent from the comparable 2022 period. EBITDA before special items was DKK474 million with an EBITDA margin of 24.1 percent.
During the quarter, STG completed the acquisition of Alec Bradley, a leading player in the U.S. handmade cigar category. In April 2023, following the close of the quarter, the company announced the acquisition of XQS, a brand active in Sweden within the next-generation product category space.
While still struggling with uncertainties relating to consumer behavior, the company expects year-on-year impacts from inflation to decline over the coming quarters. “Consumer demand for handmade cigars in the U.S. in the quarter is still perceived as resilient, although volume declines remained above its structural decline trend as overflow from the exceptionally strong two years during the pandemic trails off,” the company wrote in a statement.
“STG remains on track to deliver on the 2023 guidance with results for the first quarter being up against strong comparisons in 2022,” said CEO Niels Frederiksen. “We have stabilized our production issues, but we are still recovering from this impact as well as cost inflation into 2023, affecting margins negatively. The group is making good progress on our ambition to grow the size of the company with two transactions announced within the last few months.”
May 18, 2023