Company Announcement
No. 47/2024
Copenhagen, 22 August 2024
Interim report, 1 January - 30 June 2024
Scandinavian Tobacco Group A/S reports second quarter 2024 results and maintains full-year guidance
For the second quarter of 2024 Scandinavian Tobacco Group delivered a 6.3% increase in reported net sales by DKK 2.4 billion with an EBITDA margin before special items at 24.5%. Net sales increased 4.8% 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 EBITDA margin is impacted by an improving, yet still negative, volume development, mix changes and investments in growth. In the second half of the year, the Group is expected to deliver organic net sales growth and a continued improvement in the EBITDA-margin. The full year guidance is maintained.
Second Quarter 2024 - Financial Performance
CEO Niels Frederiksen: “The second quarter financial performance supports our expectation for the full year. 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”.
Acquisition of Mac Baren
With effect from 1 July 2024, Scandinavian Tobacco Group has acquired Mac Baren Tobacco Company A/S (“Mac Baren”) in a transaction valued at DKK 535 million. Mac Baren is a leading global smoking tobacco company, which includes a strong portfolio of pipe tobacco brands, fine-cut tobacco brands and brands within the nicotine pouch category. Mac Baren adds a valuable portfolio of brands within the smoking tobacco category, increases our presence in the nicotine pouch market and contributes to improved financial results.
Financial Guidance 2024
The financial guidance 2024 is unchanged.
The full-year financial guidance for 2024 is exclusive of the impact from the acquisition of Mac Baren Tobacco Company. The financial impact of the acquisition will be communicated as soon as the integration planning period has been completed, but no later than at the release of the third quarter interim report, on 12 November 2024.
For further information, please contact:
Torben Sand, Director of IR & Communication, phone +45 5084 7222 or torben.sand@st-group.com
A conference call will be held on 23 August 2024 at 10.00 CEST. Dial-in information and an accompanying presentation will be available at investor.st-group.com/investor around 09:00 CEST.
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