XCSE:STG ESEF Annual Report
SCANDINAVIAN TOBACCO GROUP A/S (XCSE:STG)
ESEF Annual Report
2025-05-27
For: 2025-03-31
View Original
Added on
September 22, 2026
Company Announcement
No. 11/2025
Copenhagen, 20 May 2025
Interim report, 1 January - 31 March 2025
sults and Adjusts Expectations for Full Year 2025.
Scandinavian Tobacco Group´s reported net sales for the first quarter 2025 increased 1.3% to DKK
2.0 billion with a negative organic net sales growth of 8.8%. EBITDA before special items decreased
5.3% to DKK 317 million with an EBITDA margin of 16.1%. Free cash flow before acquisitions was
DKK 156 million and the adjusted EPS were DKK 1.5.
The reported net sales growth was driven primarily by the addition of the Mac Baren business and
high double-digit growth in our XQS nicotine pouch brand. Organic net sales decline was impacted by
lower consumption of handmade cigar sales in the US and by discontinuation of online distribution of
ZYN in the US. Temporary supply issues related to the go-live of SAP in our European factories phased
some machine-rolled cigar sales from the first to later quarters.
The EBITDA margin decreased 1%-points compared with the first quarter of last year. The decline is
driven by a combination of product and market mix, investments in re-gaining market shares in ma-
chine-rolled cigars in key European markets as well as the expansion of our nicotine pouch business.
First Quarter 2025
• Reported net sales increased by 1.3% to DKK 2.0 billion (DKK 1.9 billion)
• Organic net sales growth was -8.8%
• Growth Enablers accounted for 10% of Group net sales
• EBITDA before special items was DKK 317 million (DKK 335 million)
• EBITDA margin was 16.1% (17.2%)
• Adjusted EPS were DKK 1.5 (DKK 1.8)
• Free cash flow before acquisitions was DKK 156 million (DKK -126 million).
• Return on Invested Capital (ROIC) was 8.8% (10.3%).
Adjusting the expectations for full year 2025
As consequence of the recent changes in U.S. international trade policy - announced in April and
resulting in increased tariffs of currently 10% on imported goods - and due to the translation effect from
a lower U.S. dollar exchange rate, Scandinavian Tobacco Group is adjusting its financial expectations
for the full year 2025. Despite a weak first quarter, the underlying business trends, as communicated
in the March results announcement, remain largely unchanged. However, uncertainty related to US
consumer sentiment, down trading and retailer decisions on inventory has increased.
The U.S. market accounts for approximately 45% of the Group’s net sales. Since the release of the
2025 financial outlook on 6 March, the U.S. dollar has depreciated by nearly 5% against the Danish
2
krone. This negative translation effect on reported figures is partially offset by price adjustments intro-
duced in response to the tariff increases.
The Group now expects reported net sales for 2025 to be in the range of DKK 9.1–9.5 billion, adjusted
from the previous range of DKK 9.2–9.7 billion.
The Group’s EBITDA margin is expected to be negatively impacted by slightly more than half a per-
centage point solely due to the tariff related price increases which will impact both cost prices and
retail prices. To reflect the impact of this and to maintain full flexibility to protect our market shares and
develop our business, the range for the full-year EBITDA margin expectation has been widened and
revised to a range of 18-22%.
Free cash flow is now projected at DKK 0.8–1.0 billion and has been narrowed from the previous range
of DKK 0.8–1.1 billion. The adjustment to the upper end of the range reflects the lower EBITDA outlook,
while the unchanged lower end of the range underscores the Group’s commitment to preserving cash
flow throughout the year. The free cash flow for the full year is still expected to be impacted by capex
investments of up to DKK 300 million including factory consolidations, OneProcess investments and
the opening of two new retail super stores in the US. Special cash items paid is expected at about
DKK 200 million, primarily relating to the Mac Baren integration and roll-out of our SAP 4/Hana ERP
solution.
Adjusted Earnings Per Share has been revised downward by DKK 1.0 to reflect the adjusted EBITDA
expectation and is now expected in the range of DKK 10-13 per share.
Given these considerations our adjusted expectations for 2025 are:
Guidance and assumptions are based on no impact from potential new acquisitions and at current exchange rates. A 10% change in the USD/DKK
exchange rate would impact group net sales by approximately 5 percentage points with EBITDA margins being only marginally impacted.
CEO Niels Frederiksen: “We are adjusting our full year expectations to reflect the impact of a weaker
USD and increasing tariffs on imported goods to the US. Although consumer sentiment is affected
negatively the underlying business trends remain largely unchanged and our focus is on navigating
this period of increased uncertainty best possible with the main priority being to protect and enhance
market shares and protect cash flow. The wider guidance range on the EBITDA margin provides us
with the necessary flexibility to make the right long-term business decisions. We are making good
progress with the integration of Mac Baren and in the development of our updated strategy”.
For further information, please contact:
Torben Sand, Director of IR & Communication, phone +45 5084 7222, torben.sand@st-group.com.
Eliza Dabbagh, IR & Communications, phone +45 5080 7619, eliza.michael@st-group.com.
A conference call will be held on 21 May 2025 at 10.00 CEST. Dial-in information and an accompany-
ing presentation will be available at investor.st-group.com/investor around 09:00 CEST.
Reported net sales DKK 9.1-9.5 billion (from 9.2-9.7 billion)
EBITDA margin before special items 18-22% (from 20-23%)
Free cash flow before acquisitions DKK 0.8-1.0 billion (from 0.8-1.1 billion)
Adjusted EPS DKK 10-13 (from 11-14)
3
Key Figures
DKK million
Q1 2025
Q1 2024
FY2024
INCOME STATEMENT
Net sales
1,974
1,948
9,202
Gross profit before special items
867
881
4,279
EBITDA before special items
317
335
2,079
Special items
-70
-30
-279
EBIT
136
208
1,380
Net financial items
1
-73
-54
-186
Profit before tax
67
159
1,219
Income taxes
-15
-34
-280
Net profit
52
125
940
BALANCE SHEET
Total assets
16,691
16,329
17,104
Equity
9,071
9,522
9,217
Net interest-bearing debt (NIBD)
5,244
4,480
5,423
Investment in property, plant and equipment
23
50
216
Total capital expenditures
27
58
264
CASH FLOW STATEMENT
Cash flow from operating activities
177
-71
1,179
Cash flow from investing activities
-26
-92
-824
Free cash flow
152
-163
355
Free cash flow before acquisitions
156
-126
931
KEY RATIOS
2
Net sales growth
1.3%
-0.7%
5.4%
Gross margin before special items
43.9%
45.2%
46.5%
EBITDA margin before special items
16.1%
17.2%
22.6%
Effective tax percentage
23.0%
21.5%
22.9%
Equity ratio
54.3%
58.3%
53.9%
Cash conversion
139.1%
21.5%
100.8%
Organic net sales growth
-8.8%
-2.1%
0.4%
NIBD / EBITDA before special items
2.5
2.3
2.6
ROIC
8.8%
10.3%
9.4%
ROIC ex. Goodwill
13.8%
16.3%
14.7%
Adjusted earnings per share (DKK)
1.5
1.8
13.7
Basic earnings per share (DKK)
0.7
1.5
11.5
Diluted earnings per share (DKK)
0.7
1.5
11.4
Number of shares issued ('000)
86,000
87,000
86,000
Number of treasury shares ('000)
7,266
2,424
7,266
Number of outstanding shares ('000)
3
78,839
85,373
82,162
Share price at balance date (DKK)
100.60
123.80
95.30
Dividend per share (DKK)
8.50
Pay-out ratio
77.8%
1. Excl. share of profit of associated companies.
2. See definition/explanation of financial ratios in note 5.8 in the Annual Report 2024.
3. Average number of shares outstanding, including dilutive effect of PSUs.
4
First Quarter 2025 - Financial performance
During the first quarter reported net sales for the Group increased by 1.3% to DKK 2.0 billion. Organic
net sales growth was negative by 8.8% with reported growth being impacted by the acquisition of Mac
Baren by 8.5% and exchange rates developments by 1.6%.
The organic net sales performance was negative in the three reporting divisions with -13% in North
America Branded & Rest of World (“NABROW”), -10% in North America Online & Retail (“NAOR”) and
-4% in Europe Branded (“EUB”). The relatively high decline in organic net sales is partly driven by
phasing of volume. In the US, the large annual trade show was moved from the first quarter to the
second quarter, and we discontinued the distribution of ZYN in our online business. In Europe, we
have seen temporary lower shipments of machine-rolled cigars related to our go-live with SAP in our
European factories, which has been solved.
Measured by product categories the organic net sales development was -3% in Machine-Rolled Cigars
& Smoking Tobacco, -9% in Handmade Cigars and -43% in Next Generation Products. Excluding the
negative impact from the discontinued distribution of ZYN in the US, our own nicotine pouch brands
delivered -3% organic growth driven by the planned rationalization of Mac Baren nicotine pouch brands
Ace and Gritt, whereas XQS delivered 41% growth.
Reported EBITDA before special items decreased by 5.3% with an EBITDA margin before special
items of 16.1% compared with 17.2% in the same quarter of 2024. The development in the margin
was driven primarily by a lower margin in EUB (-4.2bp to 9.6%). The decrease in the margin in EUB is
mostly driven by mix, an impact from lower volumes caused by the go-live of SAP in our Belgian
factories in the quarter and price decisions to improve market shares for 2025. The OPEX ratio in-
creased to 28.4% compared with 28.2% in 2024.
Special items were negative by DKK 70 million relating to the SAP implementation programme, the
integration of Mac Baren and reorganisations. Net profit decreased by 58.7% to DKK 52 million while
Adjusted Earnings Per Share decreased by 19.6% to DKK 1.5.
Table 1: Net sales
Table 2: Free Cash Flow before acquisitions
Q1
Q1
Change
DKK million
2025
2024
in %
Net sales
1,974
1,948
1.3%
Acquisitions
183
Currency development
-31
Organic net sales
1,943
2,131
-8.8%
Q1
Q1
Change
DKK million
2025
2024
in DKK
EBITDA
317
335
-18
Working Cap. changes
41
-252
+293
Investments a.o.
-202
-209
+7
FCF bef. acq.
156
-126
+282
5
Divisional split Q1 2025
Net sales and organic growth EBITDA before special items and margin
The Group’s free cash flow before acquisitions was DKK 156 million (DKK -126 million). The improve-
ment is primarily relating to changes in working capital, which impacted the first quarter this year pos-
itively by DKK 41 million compared with a negative impact of DKK 252 million in the first quarter of
2024.
By the end of the first quarter, the Group´s leverage ratio was 2.5 times compared with 2.6 times by
the end of 2024. The return on invested capital (ROIC) was 8.8% versus 9.4% by the end of 2024.
The development was primarily driven by the lower EBITDA before special items as well as higher
special costs resulting in a decrease in the EBIT. The average invested capital was DKK 14.8 billion
compared with DKK 14.7 billion by the end of 2024.
Strategy and Other Key Updates
Growth Enablers
Identifying new revenue streams is an important part of our strategy to create a larger company and
increase profits. We have currently identified three Growth Enablers comprising international sales of
handmade cigars (outside of the US), retail stores in the US and Next Generation Products with a
focus on nicotine pouches. Two of our three Growth Enablers progressed well in the first quarter of
2025, with international sales of handmade cigars being negatively affected by inventory availability,
partly caused by the SAP go-live in the European factories. Growth Enablers accounted for about 10%
of group net sales in the first quarter.
By the end of the first quarter, Cigars International operates thirteen Retail Stores. Ten of these stores
have been open for more than one year. During the quarter organic net sales from the retail super-
stores increased by 25% with same-store-sales being slightly positive.
International sales of handmade cigars delivered double-digit negative growth in reported net sales
during the quarter due to a combination of inventory availability and phasing. The expansion of the
handmade cigar business outside the US remains a priority and we still expect sales to improve over
the coming quarters. We estimate that our brands have a 6% volume share of the market for hand-
made cigars outside North America making Scandinavian Tobacco Group the third largest company
in this segment.
Next Generation Products with focus on nicotine pouches delivered a negative growth in reported
net sales by 18% in the first quarter. Organic growth for our largest brand XQS was 41% in the first
34%
35%
31%%
NA Branded &
RoW
Europe Branded
NA Online &
Retail
63%
17%
20%
DKK 1,974m
-8.8%
DKK 317m
16.1%
6
quarter, with the brand continuing to take market share in Sweden, which increased to more than 11%
by the end of the quarter. The rationalization of the Mac Baren nicotine pouch portfolio and the dis-
continuation of US online distribution of NGPs explain the overall decline.
The Growth Enablers accounted for 10% of Group net sales in the first quarter on par with the share
in the fourth quarter and compared with about 9% for the full year of 2024, excluding net sales from
the online distribution of ZYN in the US, which was discontinued as of the third quarter last year.
Capital Allocation and result of the AGM
At the Annual General Meeting on 9 April 2025, the proposal to increase the ordinary dividend to DKK
8.50 per share was approved resulting in a total dividend payment of DKK 731 million.
By the end of the first quarter Scandinavian Tobacco Group owned a total of 7,265,625 treasury
shares, corresponding to 8.4% of the total share capital.
A proposal to cancel 6.0 million treasury shares was also approved at the Annual General Meeting.
The cancellation was completed in May, and the number of issued shares as result is 80.0 million. The
Group´s holding of treasury shares is 1,265,625, corresponding to 1.58% of the share capital.
Events after the reporting period
There are no other events than those mentioned in the above that have occurred after 31 March 2025
and that are expected to have material impact on the financial position of the Group.
Forward-looking statements
This report contains forward-looking statements. Such statements are subject to risk and uncertainties
as various factors, many of which are beyond Scandinavian Tobacco Group’s control, may cause
actual developments and results to differ materially from the expectations set out in this report.
7
Sales performance by category
Net sales distribution and growth by category
Q1 2025
% of Group
Organic
Growth
Reported
Growth
Handmade Cigars
34%
-9.1%
-6.1%
Machine-rolled Cigars & Smoking Tobacco
51%
-3.0%
10.6%
Next Generation Products
4%
-43.2%
-18.3%
Other
11%
-12.8%
-4.6%
Total
100%
-8.8%
1.3%
Handmade Cigars
The product category Handmade Cigars accounted for 34% of group net sales in the quarter. Reported
net sales decreased by 6.1% compared with the same quarter last year and organic growth was neg-
ative by 9.1%.
The development in organic net sales of handmade cigars was driven by a double-digit decline in both
net sales to wholesalers and distributors in the US and in international markets (excluding the US).
Online sales of handmade cigars were down by 6% compared with the first quarter of last year, while
sales through our retail superstores increased by 21% driven by new store openings.
The development is impacted by the general decline in consumption in the US, and by phasing be-
tween the quarters. We see a higher decline in our business-to-business channel versus our business-
to-consumer channels. Some of the decline is caused by the move of a large trade show from the first
quarter in 2024 to the second quarter in 2025 as well as inventory phasing for large online customers.
Our online business has been able to mostly offset a continued decline in the number of active con-
sumers through pricing and an increase in the average basket size. Retention rates continue to im-
prove, whereas the number of new consumers to file are decreasing.
Machine-rolled Cigars and Smoking Tobacco
The product category Machine-Rolled Cigars & Smoking Tobacco accounted for 51% of group net
sales in the quarter. Reported net sales increased by 10.6% compared with the same quarter last year
while organic growth was negative by 3.0%. The acquisition of Mac Baren impacted growth by 12.8%.
Smoking tobacco delivered 44% growth in reported net sales and machine-rolled cigars a 6% negative
growth primarily driven by France, Spain and the UK. Excluding the impact from the acquisition of Mac
Baren, smoking tobacco delivered 7% organic net sales growth in the quarter.
Preliminary total market data for machine-rolled cigars in our key European markets indicate a volume
decline rate of 2.2% in the first quarter compared with a decline rate of 3.5% for the full year of 2024.
The preliminary data indicate that our volume market share was negatively impacted by the SAP im-
plementation during the quarter in our European factories. The market share declined to 26.9% com-
pared with 28.1% in the fourth quarter of last year. Production and shipments are normalized, and we
see market shares recovering in April.
Next Generation Products
The product category Next Generation Products accounted for 4% of group net sales in the quarter.
Reported net sales for NGPs decreased by 18% compared with the same quarter last year with organic
net sales decreasing by 43%. The discontinuation of the distribution of ZYN in our US online business
impacted organic net sales growth negative by 34% and a streamlining of the Ace and Gritt brands
from Mac Baren to fewer markets did also impact growth negatively. XQS continues to deliver strong
8
growth and was up by 41% year on year and XQS market share in Sweden exceeded 11% at the end
of the quarter. The roll-out of the brand in the UK and Denmark continues to progress albeit at a slower
pace.
Other
In the quarter, organic net sales in the category Other, decreased by 13%. The decrease primarily
relates to contract manufacturing and filters/accessories in Australia.
Financial performance by division
Europe Branded
During the first quarter reported net sales increased by 11.4% compared to 2024. Organic net sales
growth was negative by 3.7% with acquisitions impacting growth by 14.8% and exchange rates by
0.3%. The organic net sales development is comprised by 21% growth in our nicotine pouch business,
whereas growth was negative in handmade cigars and in machine-rolled cigars. Smoking tobacco
delivered unchanged organic net sales.
First Quarter Development, 2021-2025
For the first quarter EBITDA before special items decreased by 20.6% with an EBITDA margin before
special items of 9.6% compared with 13.8% in 2024. The decrease in the EBITDA margin is a result
of mix changes driven by the expansion of nicotine pouches, negative gross margin impacts from
pricing decisions taken in France as well as the impact from lower volumes in machine-rolled cigars.
The decrease in machine-rolled cigars volumes were primarily related to shipment delays from the go
live of our SAP implementation in our European factories. Shipment volumes have normalized in April
and market shares have improved in April and May.
North America Branded & Rest of World
During the quarter reported net sales decreased by 2.0% compared with 2024. Organic net sales
growth was negative by 13.0% with acquisitions impacting growth by 9.5% and exchange rates by
1.5%. The organic net sales development was driven by double-digit decline rates in all product cate-
gories, except smoking tobacco which delivered growth.
For handmade cigars a double-digit negative organic growth in net sales to external wholesalers and
distributors was driven by declining consumer sentiment affecting consumption, the move of the annual
trade show from the first quarter in 2024 to the second quarter in 2025 and weather conditions. Sales
5%
10%
15%
20%
25%
30%
500
600
700
800
900
Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2025
Net sales and EBITDA margin b.s.i.
Net Sales (DKK million) EBITDA margin
9
to international markets was down primarily due to inventory availability issues and phasing between
the quarters.
First Quarter Development, 2021-2025
For the first quarter EBITDA before special items decreased by 0.5% with an EBITDA margin before
special items of 31.4% compared with 31.2% in 2024. The development in the profitability was result
of mix changes with positive net sales growth in smoking tobacco as well as a lower OPEX ratio.
North America Online & Retail
During the first quarter reported net sales decreased by 4.9% compared to 2024. Organic net sales
growth was negative by 9.6% with acquisitions impacting growth by 1.9% and exchange rates by 2.8%.
The organic net sales development was negatively impacted by about 8% from discontinuation of the
distribution of ZYN in the US online business. The online business, excluding the discontinued distri-
bution, delivered a 5% negative growth in the quarter while the retail stores delivered 25% organic
growth.
In the online business the decline in our twelve months active consumer file continued primarily re-
flecting a decrease in new customer acquisition. The retention rate amongst existing customers con-
tinued to improve.
The double-digit growth in the retail business was driven by the opening of new super stores and a
slightly positive development in same-store-sales.
First Quarter Development, 2021-2025
For the first quarter EBITDA before special items decreased by 9.1% with an EBITDA margin before
special items of 11.9% compared with 12.5% in 2024. The development in the profitability was driven
by an improved gross margin, primarily reflecting changes in channel mix while the OPEX ratio in-
creased primarily due to the scale impact from the discontinued ZYN distribution agreement.
20%
25%
30%
35%
40%
45%
500
600
700
800
900
Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2025
Net sales and EBITDA margin b.s.i.
Net Sales (DKK million) EBITDA margin
5%
10%
15%
20%
25%
400
500
600
700
800
Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2025
Net sales and EBITDA margin b.s.i.
Net Sales (DKK million) EBITDA margin
10
Quarterly Financial Data
2025
DKK million Q1 Q4 Q3 Q2 Q1 FY
Reported data
Net sales 1,974 2,458 2,431 2,366 1,948 9,202
Gross profit before special items 867 1,162 1,126 1,109 881 4,279
EBITDA before special items 317 596 568 580 335 2,079
Special items -70 -148 -49 -53 -30 -279
EBIT 136 342 401 429 208 1,380
Net financial items -73 -54 -26 -53 -54 -186
Profit before tax 67 292 383 385 159 1,219
Income taxes -15 -71 -86 -88 -34 -280
Net profit 52 221 297 297 125 940
Other financial key data
Organic net sales growth -8.8% -1.0% -0.1% 4.8% -2.1% 0.4%
Gross margin before special items 43.9% 47.3% 46.3% 46.9% 45.2% 46.5%
EBITDA margin before special items 16.1% 24.3% 23.4% 24.5% 17.2% 22.6%
Free cash flow before acquisitions 156 604 275 177 -126 931
North America Online & Retail
Net sales 619 740 743 840 650 2,973
Gross profit before special items 252 286 292 331 255 1,164
EBITDA before special items 74 99 109 152 81 441
Net sales growth -4.9% 0.2% -0.2% 13.6% 8.1% 5.3%
Organic net sales growth -9.6% -2.4% -0.9% 12.1% 9.2% 4.2%
Gross margin before special items 40.8% 38.6% 39.3% 39.4% 39.2% 39.1%
EBITDA margin before special items 11.9% 13.4% 14.6% 18.1% 12.5% 14.8%
North America Branded & RoW
Net sales 668 870 837 751 681 3,139
Gross profit before special items 330 445 418 391 340 1,595
EBITDA before special items 210 342 302 275 211 1,130
Net sales growth -2.0% 17.1% 3.5% -2.9% -5.4% 3.1%
Organic net sales growth -13.0% 3.5% -4.8% -3.5% -6.1% -2.6%
Gross margin before special items 49.5% 51.2% 50.0% 52.0% 50.0% 50.8%
EBITDA margin before special items 31.4% 39.3% 36.1% 36.6% 31.2% 36.0%
Europe Branded
Net sales 687 848 850 775 617 3,090
Gross profit before special items 284 431 416 388 286 1,520
EBITDA before special items 66 183 189 193 83 649
Net sales growth 11.4% 6.9% 18.8% 8.8% -3.8% 7.9%
Organic net sales growth -3.7% -4.2% 5.8% 6.1% -7.7% 0.1%
Gross margin before special items 41.3% 50.8% 48.9% 50.0% 46.3% 49.2%
EBITDA margin before special items 9.6% 21.6% 22.3% 24.9% 13.8% 21.0%
Group costs
EBITDA before special items -32 -28 -33 -40 -40 -141
2024
11
EXECUTIVE MANAGEMENT
BOARD OF DIRECTORS
12
CONSOLIDATED STATEMENT OF INCOME
1 JANUARY - 31 MARCH
DKK million
Note
Q1 2025
Q1 2024
INCOME STATEMENT
Net sales
2
Cost of goods sold
2
-1,107.0
-1,067.1
Gross profit before special items
2
Other external costs
2
-285.9
-295.7
Staff costs
2
-274.9
-254.3
Other income
Earnings before interest, tax, depreciation, amortisation and special
items (EBITDA before special items)
2
Depreciation and impairment
-63.0
-53.1
Earnings before interest, tax, amortisation and special items (EBITA
before special items)
Amortisation and impairment
-48.3
-43.9
Earnings before interest, tax and special items (EBIT before special
items)
Special items, costs and impairment
3
-69.8
-29.8
Earnings before interest and tax (EBIT)
Share of profit of associated companies, net of tax
Financial income
Financial costs
-89.0
-69.2
Profit before tax
Income taxes
-15.4
-34.1
Net profit for the period
Earnings per share
Basic earnings per share (DKK)
Diluted earnings per share (DKK)
STATEMENT OF COMPREHENSIVE INCOME
Net profit for the period
OTHER COMPREHENSIVE INCOME
Items that will be recycled subsequently to the Consolidated Statement of Income, when specific conditions are met:
Foreign exchange adjustments on net investments in foreign operations
-200.7
Other comprehensive income for the period, net of tax
-200.7
Total comprehensive income for the period
-149.2
Net sales
In the first quarter of 2025, net sales were DKK 1,974 million (DKK 1,948 million). Adjusted for a pos-
itive exchange rate impact of DKK 31 million and acquisitions of DKK 183 million, the organic growth
13
in net sales was negative by 8.8%, primarily driven by North America Branded & Rest of World and
North America Online & Retail, but also Europe Branded delivered negative organic growth in net
sales.
Profit
Gross profit before special items for the first quarter of 2025 was DKK 867 million (DKK 881 million)
mainly driven by negative mix and cost increases. Gross margin before special items decreased to
43.9% (45.2%).
Operating expenses for the first quarter of 2025 increased by 2% compared to the same quarter last
year and stood at DKK 561 million (DKK 550 million). The OPEX ratio increased to 28.4% (28.2%).
EBITDA before special items for the first quarter of 2025 amounted to DKK 317 million (DKK 335
million). The development is mainly explained by the lower gross profit and the slightly increased
OPEX ratio.
EBITDA margin before special items for the first quarter of 2025 was 16.1% (17.2%).
During the quarter DKK 70 million (DKK 30 million) have been expensed as special items, mainly
relating to the ERP implementation project, OneProcess, and integration costs for the Mac Baren ac-
quisition. For further details, refer to note 3.
Net profit for the first quarter of 2025 was DKK 52 million (DKK 125 million). Earnings Per Share (EPS)
were DKK 0.7 (DKK 1.5). Earnings Per Share adjusted for special items, fair value adjustments and
currency gains/losses, net of tax stood at DKK 1.5 (DKK 1.8).
First Quarter Development, 2021-2025
10%
14%
18%
22%
26%
30%
1000
1300
1600
1900
2200
2500
Q1 2021 Q1 2022 Q1 2023 Q1 2024 Q1 2025
Net sales and EBITDA margin b.s.i.
Net Sales (DKK million) EBITDA margin
14
CONSOLIDATED BALANCE SHEET
ASSETS
DKK million
31 Mar 2025
31 Mar 2024
31 Dec 2024
INTANGIBLE ASSETS
Goodwill
Trademarks
IT software
Other intangible assets
Intangible assets under development
Total intangible assets
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment
Investments in associated companies
Deferred income tax assets
Total non-current assets
Inventories
Trade receivables
Other receivables
Corporate tax
Prepayments
Cash and cash equivalents
Assets classified as held for sale
Total current assets
Total assets
15
CONSOLIDATED BALANCE SHEET
EQUITY AND LIABILITIES
DKK million
31 Mar 2025
31 Mar 2024
31 Dec 2024
Share capital
Reserve for currency translation
Treasury shares
-787.8
-305.1
-787.8
Retained earnings
Total equity
Borrowings
Deferred income tax liabilities
Pension obligations
Other provisions
Lease liabilities
Other liabilities
Total non-current liabilities
Borrowings
Credit facilities
Trade payables
Corporate tax
Other provisions
Lease liabilities
Other liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
Net interest-bearing debt
Net interest-bearing debt decreased by DKK 179 million to DKK 5,244 million versus the end of 2024.
The leverage ratio (net interest-bearing debt to LTM EBITDA before special items) was 2.5x compared
to 2.6x at 31 December 2024.
Return on Invested Capital
The return on invested capital (ROIC) was 8.8% versus 9.4% by the end of 2024, explained mainly
by a DKK 72 million reduction in EBIT (12 months rolling) and driven by the operational performance.
Invested capital was stable and stood at DKK 14.8 billion (DKK 14.7 billion end of 2024).
16
CONSOLIDATED CASH FLOW STATEMENT
1 JANUARY - 31 MARCH
DKK million
Q1 2025
Q1 2024
Net profit for the period
Depreciation, amortisation and impairment
Adjustments
Changes in working capital
-252.2
Special items, paid
-66.7
-23.9
Cash flow from operating activities before financial items
Financial income received
Financial costs paid
-38.3
-43.6
Cash flow from operating activities before tax
Tax payments
-88.3
-83.2
Cash flow from operating activities
-71.0
Acquisitions
-4.3
-37.3
Investment in intangible assets
-4.6
-7.6
Investment in property, plant and equipment
-22.5
-49.9
Sale of property, plant and equipment
Dividend from associated companies
Cash flow from investing activities
-25.5
-91.8
Free cash flow
-162.8
Repayment of lease liabilities
-23.7
-17.8
RCF and bank loan
-270.0
Repayment bank loans
-1.1
-1.0
Purchase of treasury shares
-157.6
Cash flow from financing activities
-294.8
-16.8
Net cash flow for the period
-143.0
-179.6
Cash and cash equivalents, net at 1 January
Exchange gains/losses on cash and cash equivalents
-3.6
Net cash flow for the period
-143.0
-179.6
Cash and cash equivalents, net at 31 March
-79.7
17
Cash flow
Cash flow from operations before changes in working capital in the first quarter of 2025 was DKK 136
million (DKK 181 million). The development was mainly driven by higher special item payments.
Changes in working capital in the first quarter of 2025 had a positive impact on the cash flow of DKK
41 million (DKK -252 million) mainly due to a decreased level of trade receivables and higher liabilities
partly offset by an increase in inventories.
Cash flow from investing activities in the first quarter of 2025 amounted to DKK -26 million (DKK -92
million). The first quarter of 2025 was mainly impacted by investments in property, plant and equip-
ment.
Cash flow from financing activities in the first quarter of 2025 amounted to DKK -295 million (DKK -17
million). The first quarter of 2025 was mainly impacted by repayment on the RCF.
Free cash flow before acquisitions in the first quarter of 2025 was positive by DKK 156 million (DKK -
126 million). The cash conversion ratio was 139% (21%).
STATEMENT OF CHANGES IN GROUP EQUITY
DKK million
Share
capital
Reserve for
currency
translation
Treasury
shares
Retained
earnings
Total
Equity at 1 January 2025
-787.8
Comprehensive income for the period
Net profit for the period
Other comprehensive income
Foreign exchange adjustments on net
investments in foreign operations
-200.7
-200.7
Total other comprehensive income
-200.7
-200.7
Total comprehensive income for the period
-200.7
-149.2
Transactions with shareholders
Share-based payments
Total transactions with shareholders
Equity at 31 March 2025
-787.8
Equity
Total shareholders’ equity amounted to DKK 9,071 million on 31 March 2025 (DKK 9,217 million on
31 December 2024). The equity was negatively impacted by foreign exchange adjustments on net
investments in foreign operations being only partly offset by the positive impact from profit for the
period. As of 31 March 2025, the equity ratio was 54.3% (53.9% on 31 December 2024).
STATEMENT OF CHANGES IN GROUP EQUITY (continued)
DKK million
Share
capital
Reserve for
currency
translation
Treasury
shares
Retained
earnings
Total
Equity at 1 January 2024
-141.4
18
Comprehensive income for the period
Net profit for the period
Other comprehensive income
Foreign exchange adjustments on net
investments in foreign operations
Total other comprehensive income
Total comprehensive income for the period
Transactions with shareholders
Purchase of treasury shares
-163.7
-163.7
Share-based payments
Total transactions with shareholders
-163.7
-160.1
Equity at 31 March 2024
-305.1
NOTES
NOTE 1
BASIS OF PREPARATION
The interim consolidated financial statements for the first three months of 2025, ending 31 March 2025,
has been prepared in accordance with IAS 34, Interim Financial Reporting, and additional Danish
disclosure requirements for listed companies.
The interim consolidated financial statements do not include all the information and disclosures as
required for the annual financial statements and should therefore be read in conjunction with the infor-
mation and disclosures given in the Group’s Annual Report for 2024.
The accounting policies adopted in the preparation of the interim consolidated financial statements are
consistent with those followed in preparation of Group’s Annual Report for 2024, except for the adop-
tion of new and amended accounting standards effective as of 1 January 2025.
Only one amendment to IAS 21, The Effects of Changes in Foreign Exchange Rates relating to lack
of exchangeability applies for the first time in 2025. The amendment does not impact the interim con-
solidated financial statements for the Group.
The Group has not early adopted any new standards, interpretations or amendments that has been
issued but are not effective yet.
Significant accounting estimates
The estimates made by STG in the determination of the carrying amounts of assets and liabilities are
based on assumptions that are subject to future events. For a description of risks and accounting es-
timates, see the Annual Report for 2024.
19
NOTE 2
SEGMENT INFORMATION AND NET SALES
3M 2025
North
America
Online &
Retail
North
America
Branded
& RoW
Europe
Branded
Group
costs / not
allocated
Total
DKK million
Net sales
618.7
667.7
687.3
-
1,973.7
Cost of goods sold
-366.5
-337.4
-403.1
-
-1,107.0
Gross profit before special items
252.2
330.3
284.2
-
866.7
Staff and other external costs
-178.7
-131.8
-218.2
-32.1
-560.8
Other income
-
11.1
-
-
11.1
EBITDA before special items
73.5
209.6
66.0
-32.1
317.0
Depreciation and impairment
-63.0
-63.0
Amortisation and impairment
-48.3
-48.3
EBIT before special items
-143.4
205.7
Special items, costs and impairment
-69.8
-69.8
EBIT
-213.2
135.9
Share of profit of associated
companies, net of tax
3.9
3.9
Financial income
16.1
16.1
Financial costs
-89.0
-89.0
Profit before tax
-282.2
66.9
SEGMENT INFORMATION AND NET SALES (continued)
3M 2024
North
America
Online &
Retail
North
America
Branded
& RoW
Europe
Branded
Group
costs /
not allo-
cated
Total
DKK million
Net sales
650.3
681.2
616.8
-
1,948.3
Cost of goods sold
-395.1
-340.7
-331.3
-
-1,067.1
Gross profit before special items
255.2
340.5
285.5
-
881.2
Staff and other external costs
-174.2
-131.7
-200.6
-43.5
-550.0
Other income
-
3.6
-
3.6
EBITDA before special items
81.0
212.4
84.9
-43.5
334.8
Depreciation and impairment
-53.1
-53.1
Amortisation and impairment
-43.9
-43.9
EBIT before special items
-140.5
237.8
Special items, costs and impairment
-29.8
-29.8
20
EBIT
-170.3
208.0
Share of profit of associated
companies, net of tax
5.1
5.1
Financial income
15.0
15.0
Financial costs
-69.2
-69.2
Profit before tax
-219.4
158.9
DKK million
3M 2025
3M 2024
Category split, net sales
Handmade cigars
672.7
716.3
Machine-rolled cigars & Smoking Tobacco
1,011.2
914.2
Next Generation Products
79.7
97.6
Other
210.1
220.2
Total net sales
1,973.7
1,948.3
License income and other sales of DKK 16.0 million (DKK 3.6 million) are included in the category 'Machine-rolled
cigars & Smoking Tobacco'. License income and other sales of DKK 8.5 million (DKK 15.9 million) are included
in the category 'Other'.
DKK million
3M 2025
3M 2024
Geographical split, net sales
Americas
1.023.0
1,086.2
Europe
853.6
768.4
Rest of World
97.1
93.7
Total net sales
1.973.7
1.948.3
NOTE 3
SPECIAL ITEMS
DKK million
3M 2025
3M 2024
Integration and transaction costs (Mac Baren)
26.2
-
One Commercial Organisation
4.3
9.1
Solution Delivery Organisation
5.2
OneProcess
34.1
20.7
Total special items
69.8
29.8
21
NOTE 4
BUSINESS COMBINATIONS
With effect from 1 July 2024, Scandinavian Tobacco Group A/S acquired all the shares of Mac Baren
Tobacco Company A/S (“Mac Baren”) from Halberg A/S. The total consideration of DKK 491 million
was paid in cash.
The disclosure for the business combination is considered provisional and can be changed up until 30
June 2025.
Mac Baren
Mac Baren was a family-owned business founded in 1826 and is a leading global smoking tobacco
company, which includes pipe tobacco brands such as Mac Baren, Amphora and Holger Danske as
well as fine-cut tobacco brands like 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 US,
Denmark and Germany. Other key markets include the UK, France, Spain and Italy. The company is
based in Svendborg, Denmark with production facilities in Denmark and in Richmond, Virginia in the
US. At the time of the acquisition, the company had approximately 200 fulltime employees.
Fair value of acquired net assets
Net assets are provisional and may be adjusted and off-balance sheet items may be recorded within
the 12 months period of the acquisition date in compliance with IFRS 3.
Transaction costs
Total transaction costs related to the acquisition amount to DKK 7.0 million and was recognised in
“Special Items” in Q2 and Q3 2024.
22
NOTE 4
BUSINESS COMBINATIONS (continued)
DKK million
Provisional
fair
value at
date of
acquisition
Trademarks
81.6
Other intangible assets
19.8
Property, plant and equipment
109.5
Right-of-use assets
29.9
Deferred income tax assets
30.2
Inventories
249.5
Trade receivables
161.3
Other Receivables
1.9
Corporate tax
1.0
Prepayments
3.1
Total assets
687.8
Deferred income tax liabilities
25.0
Trade payables
83.8
Corporate tax
2.9
Lease liabilities
29.9
Other liabilities
92.3
Total liabilities
233.9
Acquired net assets
453.9
Acquisition (cash flow)
453.9
Cash and cash equivalents in acquired business
37.1
Consideration transferred
491.0