Today (September 22), STG Global Finance B.V. held its general meeting, approving the annual accounts for STG Global Finance B.V. for the financial year 2024. Furthermore, Mette Valentin, senior vice president for legal and public affairs, officially resigned from the management board. Valentin announced her retirement in June after 30 years with STG.
Tag: STG
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STG Posts Mixed Q2, Reaffirms 2025 Outlook
Scandinavian Tobacco Group A/S (STG) reported Q2 2025 net sales of DKK 2.4 billion ($384 million), down 0.2% year-on-year, with organic sales slipping 4.1%. EBITDA before special items was DKK 499 million ($79.8 million), reflecting a margin of 21.1%, compared with 24.5% a year earlier.
CEO Niels Frederiksen said performance was affected by tariffs, product mix, and the discontinued distribution of ZYN in the U.S., but noted gains in handmade and machine-rolled cigars, as well as double-digit growth in nicotine pouch brand XQS.
Despite margin pressure, STG reaffirmed its full-year 2025 guidance, targeting net sales of DKK 9.1–9.5 billion ($1.46 billion to $1.52 billion), an EBITDA margin of 18–22%, and free cash flow of DKK 0.8–1.0 billion ($128 million to $160 million).
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Scandinavian Raises U.S. Cigar Prices, Discontinues 34 SKUs
Yesterday (August 4), Scandinavian Tobacco Group (STG) announced a price increase on cigars sold in the U.S., effective immediately, marking its annual adjustment for General Cigar Co. and Forged Cigar Co. brands. According to Halfwheel, unlike other recent hikes driven by tariffs, STG clarified that this increase is unrelated to the Trump administration’s tariff policies. However, the existing 5% tariff surcharge will remain, as the tariffs have not been lifted.
STG also revealed the discontinuation of 34 SKUs, primarily from the Alec Bradley line, which it acquired in 2023.
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STG Adds Three Flavors to Nicotine Pouch Line
Scandinavian Tobacco Group UK has added three fruit-flavored varieties to its XQS nicotine pouch range: Raspberry Blackcurrant, Strawberry Kiwi, and Berrynana Twist. Each product has a nicotine strength of 8 mg, and a suggested retail price of £5.50.
The launch comes as nicotine pouches have seen 79% annual volume growth to be worth just under £136m, not including online sales. With the disposable vape ban coming into force in June, STG expects nicotine pouch sales will receive a further boost as many vape users look for different next-gen nicotine options.
STG UK’s head of marketing Prianka Jhingan said the supplier’s sales force would visit stores around the UK to encourage stocking the lines and offer a new countertop merchandising unit to display them.
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Scandinavian Sales Up, Profits Down
Scandinavian Tobacco Group (STG) released its 2024 annual report today, reporting a sales gain of 5.4%, while net profits were down by more than 20%. One of the biggest cigar companies in the world, it saw a 6% sales increase for the year to 9.2 billion Danish kroner ($1.3 billion), compared to 8.7 billion kroner in 2023. Net income, however, dropped for the second straight year to 940 million kroner ($136 million) from 1.2 billion kroner in 2023.
Last year “was another challenging year with a volatile business environment,” wrote chief executive officer Niels Frederiksen and chairman Henrik Brandt. “The global market for handmade cigars remains dominated by U.S. consumption.”
Handmade cigars accounted for 36% of STG’s 2024 revenues, while machine-made cigars and smoking tobacco were 48%.
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STG Announces Annual Meeting
Image: MarekPhotoDesign.com | Adobe Stock Scandinavian Tobacco Group’s annual general meeting will be held Thursday, April 13, 2023, at 4:30 p.m. (CEST) at the office of Kromann Reumert, Sundkrogsgade 5, 2100 Copenhagen.
Instead of attending in person, shareholders have the opportunity to follow the general meeting via live webcast transmission on the Investor Portal (available at http://investor.st-group.com). The general meeting and the webcast will commence on April 13, 2023, at 4:30 p.m. (CEST).