Scandinavian Tobacco Group A/S Adjusts Financial Expectations for 2025

On May 20, 2025, Scandinavian Tobacco Group A/S (STG) announced a revision of its financial expectations for the year, following the release of its first-quarter results. The company reported a 1.3% increase in net sales, reaching DKK 2 billion for the first quarter of 2025. However, organic net sales saw an 8.8% decline. EBITDA before special items decreased by 5.3% to DKK 317 million, with a margin of 16.1%. The adjusted earnings per share (EPS) stood at 1.5 DKK.

The downward revision in expectations for 2025 is attributed to the impact of a weaker dollar and increased tariffs, as highlighted in multiple reports. The company now anticipates net sales to be between DKK 9.1 billion and DKK 9.5 billion, with an EBITDA margin before special items projected at 18-22%.

STG, a Danish company founded in 1750 and headquartered in Soborg, Denmark, operates in the tobacco industry, specializing in handmade and machine-made cigars, pipe tobacco, fine-cut tobacco, and accessories. The company’s products are marketed under several well-known brands, including Cafe Creme, La Paz, Macanudo, CAO, Partagas (US), and Cohiba (US) for cigars, and Captain Black, Erinmore, Borkum Riff, and W.O. Larsen for pipe tobacco.

The company’s shares experienced a significant drop of 10% on the Copenhagen Stock Exchange following the announcement of the revised financial outlook. This adjustment reflects the challenges posed by the current economic environment, particularly the effects of U.S. trade policy and currency fluctuations.

Scandinavian Tobacco Group A/S remains a significant player in the consumer staples sector, with a market capitalization of DKK 8.21 billion and a price-to-earnings ratio of 8.42. Despite the current challenges, the company continues to operate through its diverse segments, offering a range of tobacco products and related accessories globally.