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Tag: Scandinavian Tobacco Group

  • Scandinavian Announces Retailer Tariff Refunds

    Scandinavian Announces Retailer Tariff Refunds

    Scandinavian Tobacco Group (STG), parent of General Cigar Co. and Forged Cigar Co., will refund retailers for import charges applied to orders from May 19, 2025, through Feb. 23, 2026, following the U.S. Supreme Court’s ruling that the Trump administration’s IEEPA tariffs were unlawful, according to Halfwheel. STG said refunds will be issued as account credits, expected around Oct. 23, after months of processing tariff refunds with the government.

    The company said it had previously reserved the option to remove the 5% import charge if the tariffs were repealed or otherwise ended. STG is currently applying a 7% import charge to account for tariffs of 12.5% on goods imported directly from the Dominican Republic and Nicaragua, and 10% on goods from Honduras. The company valued its tariff refunds at DKK 33 million ($5.12 million) in August.

  • 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.

  • Scandinavian Reports Stable First-Half Sales

    Scandinavian Reports Stable First-Half Sales

    Scandinavian Tobacco Group reported net sales of DKK 4.19 billion ($670 million) for the first half of 2026, down 3% year over year, including a 3% negative impact from currency movements. Organic sales at constant currencies declined 0.3%, while handmade cigars grew 6%. Machine-rolled cigars and smoking tobacco declined 4%, while the company said its XQS nicotine pouch business continues to expand into new markets and menthol products.

    EBITDA before special items rose 2% to DKK 835 million ($133.6 million), while EBIT before special items fell 2% to DKK 581 million ($93 million). Free cash flow before acquisitions increased 53% to DKK 422 million ($67.5 million). The company said its strategic Focus2030 program is progressing and expects the planned DKK 1.3 billion ($208 million) divestment of the BREAK and Moro fine-cut tobacco brands to close before year-end.

    Scandinavian Tobacco Group maintained its 2026 guidance, forecasting constant-currency net sales growth of -2% to 2%, an EBIT margin before special items of 13% to 14.5%, free cash flow before acquisitions of DKK 950 million ($152 million) to DKK 1.2 billion ($192 million), and adjusted EPS of DKK 9 to DKK 11 ($1.44 to $1.76).

  • 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.

  • Scandinavian Approves Dividend, Board Changes at AGM

    Scandinavian Approves Dividend, Board Changes at AGM

    Scandinavian Tobacco Group shareholders approved the company’s 2025 annual report and a dividend of DKK 4.50 ($0.72) per share at its annual general meeting, while backing the remuneration report and board compensation for 2026. The AGM also saw the re-election of most board members, and the appointment of Lars Dahlgren, with Henrik Brandt confirmed as chairman. PricewaterhouseCoopers was reappointed as auditor, as the company maintains continuity of governance while returning value to shareholders.

  • Scandinavian Announces AGM for April 15

    Scandinavian Announces AGM for April 15

    Scandinavian Tobacco Group announced that it has scheduled its annual general meeting for April 15 in Copenhagen, where shareholders will vote on key items, including approval of the 2025 annual report, a proposed dividend of DKK 4.50 ($0.72) per share, board remuneration, and director elections. The board has nominated several members for re-election and proposed Lars Dahlgren as a new director, while also recommending the reappointment of PricewaterhouseCoopers as auditor. Shareholders will be able to attend in person or follow the meeting via webcast, though remote participants will not be able to vote or ask questions.

  • Scandinavian Reports Financials, Proposes Dividend

    Scandinavian Reports Financials, Proposes Dividend

    Scandinavian Tobacco Group reported a 1.8% decline in full-year 2025 net sales to DKK 9.0 billion ($1.4 billion), with organic growth down 3.1%, or -1.8% excluding discontinued third-party nicotine pouch distribution in its online business. EBITDA margin before special items was 19.8%, in line with guidance, while free cash flow before acquisitions fell to DKK 595 million ($95.2 million) due to delayed receivables linked to a new ERP rollout in Europe. Adjusted EPS declined to DKK 10.8 from DKK 13.7 ($1.73 from $2.19) a year earlier. The board will propose an ordinary dividend of DKK 4.50 ($0.72) per share, representing a 42% payout ratio. In the fourth quarter, net sales fell 4.6% to DKK 2.3 billion ($368 million), with margin pressure driven by product mix shifts toward nicotine pouches and increased promotional spending in North America.

    For 2026, the group expects reported net sales growth at constant exchange rates of between -2% and 2%, EBIT margin before special items of 13.0%–14.5%, free cash flow before acquisitions of DKK 950 million to DKK 1.2 billion ($152 million to $192 million), and adjusted EPS of DKK 9–11. Management said 2026 will focus on earnings stabilization under its Focus2030 strategy, with continued investment in handmade cigars and nicotine pouches, while working capital is expected to normalize in the first half following the ERP-related delays.

    See the reports:

  • Scandinavian Calls for AGM Proposals

    Scandinavian Calls for AGM Proposals

    Scandinavian Tobacco Group sent a notice informing shareholders that any proposed motion to be included on the upcoming Annual General Meeting agenda must be received in writing by March 3. Requests can be sent to  investor@st-group.com or mailed to Scandinavian Tobacco Group. The AGM is scheduled for April 15.

  • Scandinavian Shuffles Cigar Lineups Between Divisions

    Scandinavian Shuffles Cigar Lineups Between Divisions

    Effective February 2, Scandinavian Tobacco Group (STG) will reshuffle its U.S. cigar sales structure, transferring five brands between its two internal sales divisions, General Cigar Co. and Forged Cigar Co., according to Halfwheel. Most notably, the non-Cuban Cohiba brand will move from General to Forged, along with Punch and Havana Honeys, as STG seeks to better balance the two divisions. Partagas and Room101 will switch to General.

    The restructuring is part of STG’s Focus2030 strategy and is designed to make General and Forged more equal in scale, despite their unusual internal competition model in which sales teams owned by the same company compete directly for the same retail accounts. STG also plans to expand the Forged sales force and has shifted several lower-volume brands—Brioso, Honduran Bundles, and La Estrella Cubana—to its Meier & Dutch wholesale division, with Los Statos Deluxe, Room101 Farce, and Sancho Panza removed from active price lists, but with no other updates given.