Business
Scandinavian Tobacco Group A/S: Interim Report First Quarter 2026
Scandinavian Tobacco Group A/S: Interim Report First Quarter
About this update from Scandinavian Tobacco Group A/s
[{"type":"text","content":"Company Announcement No. 6, 20 May 2026Interim Report First Quarter 2026: Steady progress in a seasonally low quarter Niels Frederiksen, Chief Executive Officer: “The first quarter marks the beginning of our new five-year strategy, Focus2030. Our priority this year is to lay the foundation for long-term success by stabilising our earnings in machine-rolled cigars and smoking tobacco, revitalising our strong handmade cigar business and continuing to expand our promising nicotine pouch business. I am pleased with the progress we have made in the early months of the year as we have executed on our initial plans, and I am confident we will achieve our financial ambitions as well as delivering attractive, sustainable shareholder value during the next five years”.Net sales stabilising as Focus2030 initiatives implementedReported net sales of DKK 1.9 billion includes a -5.2% impact from exchange rate changesNet sales growth at constant currencies of -0.6% impacted by timing of deliveriesPower brands lead market share stabilisation in machine-rolled cigars across EuropeXQS continues to strengthen in growing market. Market share in Sweden above 13%Handmade cigars deliver organic net sales growth of 8%EBIT margin in line with last yearEBITDA margin before special items was 17.2% (Q1 2025: 16.1%)EBIT margin before special items at 10.4% (Q1 2025: 10.4%) negatively impacted by 0.9% from change in amortization of trademarksTraditionally low first quarter cash flow positively impacted by recovery of receivablesFree cash flow before acquisitions was DKK 158 million (Q1 2025: DKK 156 million). The cash flow last year was unusually strong as result of a positive impact from working capital.The cash flow benefitted as expected from the recovery of receivables. Typically, the cash flow generation is the weakest during the first quarter.Financial expectations for full-year 2026 maintained For 2026, we expect total market trends to be similar to what we have seen over the past years for most of our product categories and with profit margins continuing to be impacted by changes in product and market mix and competitive pressures. Reported net sales growth at constant currencies is expected in the range from -2% to 2%, EBIT margin before special items in the range of 13.0%-14.5%, free cash flow before acquisitions in the range DKK 950-1,200 mill...