Scandinavian Tobacco Group A/S ( (SNDVF) ) has released its Q3 earnings. Here is a breakdown of the information Scandinavian Tobacco Group A/S presented to its investors.
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Scandinavian Tobacco Group A/S is a leading company in the tobacco industry, specializing in the production and distribution of cigars and other tobacco products, with a significant presence in both traditional and next-generation product segments.
In its third-quarter report for 2025, Scandinavian Tobacco Group A/S announced net sales of DKK 2.4 billion, a slight decrease compared to the previous year, largely due to unfavorable exchange rate impacts. The company reported an EBITDA of DKK 519 million, reflecting a margin of 22.0%, down from 23.4% the previous year. Despite these challenges, the company has narrowed its full-year expectations, indicating a more precise outlook for the remainder of the year.
Key financial metrics highlighted in the report include a 0.3% organic net sales growth in the third quarter, driven by strong performance in the Handmade Cigars and Next Generation Products segments. However, Machine-Rolled Cigars & Smoking Tobacco experienced a decline. The company’s free cash flow before acquisitions was DKK 173 million, and the adjusted EPS stood at DKK 3.4, both reflecting a decrease from the previous year.
The company is set to launch a new five-year strategy, aiming to enhance value for stakeholders by focusing on growth enablers such as international sales of handmade cigars and next-generation products. This strategic shift is expected to bolster the company’s market position and profitability in the coming years.
Looking ahead, Scandinavian Tobacco Group A/S remains cautiously optimistic, with expectations for full-year net sales between DKK 9.1-9.2 billion and an EBITDA margin of 19.5-20.5%. The company acknowledges potential risks, including US consumer sentiment and exchange rate fluctuations, but remains committed to its strategic initiatives to drive future growth.