Scandinavian Tobacco Group A/s · OMXCOP:STG
Scandinavian Tobacco Group A/s — Q2 2025 Earnings Presentation
26 slides from Scandinavian Tobacco Group A/s's earnings presentation, Aug 28, 2025
Slide 1: Creating Moments of Enjoyment
CREATING MOMENTS OF ENJOYMENT Investor Presentation Q2 2025 Results 28 August 2025
Slide 2: A Global Leader in Cigars: Corporate Summary
A GLOBAL LEADER IN CIGARS CORPORATE SUMMARY* NO. 1 HANDMADE CIGARS IN USA Market cap Share price Shares Outstanding NO. 1 MACHINE-ROLLED CIGARS IN EUROPE DKK 7.1 billion DKK 90 78.7 million GLOBAL CONSUMER BASE STRONG M&A TRACK-RECORD Major Shareholders Investor Shareholding PRODUCT CATEGORIES Chr.
Slide 3: Agenda
AGENDA Highlights and Strategy Update Niels Frederiksen, Chief Executive Officer Product Categories Niels Frederiksen, Chief Executive Officer NIELS FREDERIKSEN MARIANNE RØRSLEV BOCK Commercial Divisions Chief Executive Officer Chief Financial Officer Marianne Rørslev Bock, Chief Financial Officer G
Slide 4: Highlights and Strategy Update
HIGHLIGHTS AND STRATEGY UPDATE NIELS FREDERIKSEN, CEO
Slide 5: Q2 2025 Highlights
Q2 2025 HIGHLIGHTS • Reported net sales enhanced by Mac Baren acquisition and organic growth in main product categories • Organic net sales growth impacted by ZYN (-3%) and lower CMA and accessories sales • EBITDA margin in line with expectations supporting full-year guidance range of 18-22% • Free
Slide 6: Strategy Update and Key Events
STRATEGY UPDATE AND KEY EVENTS PURPOSE CRAFT THE RITUALS THAT MAKE US MORE INVESTING IN THE FUTURE Mac Baren integration on track Retail store expansion to continue VISION BE THE UNDISPUTED & SUSTAINABLE GLOBAL LEADER IN CIGARS Market positions in MRC stabilizing XQS deliver double-digit growth AMBI
Slide 7: Product Categories
PRODUCT CATEGORIES NIELS FREDERIKSEN, CEO
Slide 8: Net Sales Distribution: Product Categories, Commercial Divisions
Q2/H1 2025 RESULTS NET SALES DISTRIBUTION Q2 2025 PRODUCT CATEGORIES* HANDMADE MACHINE-ROLLED CIGARS & NEXT GENERATION PRODUCTS CIGARS SMOKING TOBACCO 36% 51% 4% * Other (accessories, bar sales a.o.) accounts for 9% COMMERCIAL DIVISIONS EUROPE NORTH AMERICA BRANDED & NORTH AMERICA BRANDED REST OF TH
Slide 9: Handmade Cigars
Q2/H1 2025 RESULTS HANDMADE CIGARS Q2 2025: 36% OF GROUP NET SALES Organic Net Sales Growth Drivers Net Sales Growth • Wholesalers and distributors: Recovery vs. Q1 enhanced by major trade show in April 2% 1% 1% • Online: Slightly down with active consumers declining. Retention improving • Retail: G
Slide 10: Machine-Rolled Cigars & Smoking Tobacco
Q2/H1 2025 RESULTS MACHINE-ROLLED CIGARS & SMOKING TOBACCO Q2 2025: 51% OF GROUP NET SALES Organic Net Sales Growth Drivers Net Sales Growth • Machine-Rolled Cigars: -2% 11% 11% • EU-7* total market volume increased by 1.5% • EU-7 market share recovered to 27.7% • Smoking Tobacco: 10% organic growth
Slide 11: Next Generation Products
Q2/H1 2025 RESULTS NEXT GENERATION PRODUCTS Q2 2025: 4% OF GROUP NET SALES Organic Net Sales Growth Drivers Net Sales Growth • Discontinuation of ZYN distribution impacts growth by -47% 118% • Streamlining of Ace and Gritt to fewer markets • XQS brand delivered about 20% growth driven by Sweden and
Slide 12: Divisions & Group Financials
DIVISIONS & GROUP FINANCIALS MARIANNE BOCK, CFO
Slide 13: Europe Branded
Q2/H1 2025 RESULTS EUROPE BRANDED Q2 2025: 36% OF GROUP NET SALES Organic Net Sales Growth -2% • Decline rate improving in Handmade Cigars and Machine- Net Sales Growth EBITDA margin Rolled Cigars & Smoking Tobacco 10% -0.6pp • NGPs contributes with growth driven by XQS 24.9% 24.3% EBITDA margin 24.
Slide 14: North America Branded & ROW
Q2/H1 2025 RESULTS NORTH AMERICA BRANDED & ROW Q2 2025: 33% OF GROUP NET SALES Organic Net Sales Growth -1% • Handmade cigars: mid single-digit growth with pricing off-setting Net Sales Growth EBITDA margin volume decline and decline in international sales -6.4pp 4% 36.6% • Double-digit decrease in
Slide 15: North America Online & Retail
Q2/H1 2025 RESULTS Q4 & FULL YEAR 2024 RESULTS NORTH AMERICA ONLINE & RETAIL Q2 2025: 31% OF GROUP NET SALES Organic Net Sales Growth -10% • ZYN impacted by -10%. Q3/Q4 2025 comparisons to be “clean” • Online unchanged despite decline in active customers at file Net Sales Growth EBITDA margin • Reta
Slide 16: Q2 2025 Results
Q2 2025 RESULTS DKK million Q2 2025 Q2 2024 6M 2025 6M 2024 FY 2024 Net sales 2,361 2,366 4,335 4,314 9,202 Gross profit (before special items) 1,063 1,109 1,930 1,990 4,279 OPEX -571 -545 -1,132 -1,095 -2,248 Other income 7 16 18 19 49 EBITDA before special items 499 580 816 915 2,079 Special items
Slide 17: Q2 2025 Key KPIs
Q2 2025 KEY KPI´S Q2 2025 Q2 2024 6M 2025 6M 2024 FY 2024 Organic net sales growth -4.1% 4.8% -6.3% 1.5% 0.4% Gross margin 45.0% 46.9% 44.5% 46.1% 46.5% OPEX ratio 24.2% 23.0% 26.1% 25.4% 24.4% EBITDA margin 21.1% 24.5% 18.8% 21.2% 22.6% 17
Slide 18: Net Debt and Leverage
Q2/H1 2025 RESULTS NET DEBT AND LEVERAGE Q2 2025 7 5.5 • Net debt increased by DKK 0.3 billion versus end 2024 5.0 6 5.7 5.4 4.5 • Leverage ratio increased to 2.9x from 2.6x by end 2024, 4.0 5 primarily due to dividend payments in April. 4.1 2.9 3.5 4 3.6 3.0 3.3 2.6 3 2.5 1.9 1.5 1.6 2.0 2 1.5 Leve
Slide 19: Financial Expectations 2025
FINANCIAL EXPECTATIONS 2025 NIELS FREDERIKSEN, CEO
Slide 20: Financial Expectations 2025
Q2/H1 2025 RESULTS FINANCIAL EXPECTATIONS 2025* FINANCIAL PERFORMANCE IN Q2 / H1 2025 SUPPORT FULL YEAR EXPECTATIONS NET SALES EBITDA MARGIN FREE CASH FLOW ADJUSTED EPS Before special items Before acquisitions 2025 In the range of In the range of In the range of In the range of DKK 9.1-9.5 billion 1
Slide 21: Questions and Answers
FIND OUT MORE QUESTIONS AND ANSWERS Annual Report 2024 Our 2024 Annual Report addresses our financial performance, strategic execution and other important aspects of our business operations. We are happy to take any questions from the audience now. Visit our investor site at: www.st-group.com/invest
Slide 22: 2025 Event Calendar & Contact
2025 EVENT CALENDAR & CONTACT JAN-MAR APR-JUN SEPTEMBER JUL-SEP SEPTEMBER OCT-DEC 6 March 2025 9 April 2025 27 AUG 2025 11 NOV 2025 Full year/Q4 2024 results Annual General Meeting H1/Q2 interim report Q3 interim report 20 MAY 2025 20 NOV 2025 Q1 interim report Capital Market Event Torben Sand Eliza
Slide 23: Product Category Performance
Q2/H1 2025 RESULTS PRODUCT CATEGORY PERFORMANCE Q2 2025 6M 2025 Share of Share of Organic Reported Organic Reported Group Net Group Net Growth (%) Growth (%) Growth (%) Growth (%) sales (%) sales (%) Handmade Cigars 36% 1% -4% 35% -4% -5% MRC and Smoking Tobacco 51% 3% 11% 51% 0% 11% Next Generation
Slide 24: Long Term Trend - EBITDA Margins Q2 2019-Q2 2025
LONG TERM TREND - EBITDA MARGINS Q2 2019-Q2 2025 % THE GROUP % NAOR 30 28.1 25 25 23.3 23.9 23.1 24.5 20.9 22.3 21.1 20 18.8 18.1 20 16.4 16.4 15 13.7 13.1 15 10 10 5 5 0 0 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Q2 24 Q2 25 Q2 19 Q2 20 Q2 21 Q2 22 Q2 23 Q2 24 Q2 25 EUROPE BRANDED NABROW % % 30 27.6 50 24.0 2
Slide 25: Long Term Trend - EBITDA Margins FY 2018-FY 2024
LONG TERM TREND - EBITDA MARGINS (FY 2018-FY 2024) THE GROUP NAOR % % 30 27.1 20 19.4 25.9 17.9 25 22.8 24.1 22.6 15.7 22.5 15.4 14.8 19.9 15 14.5 20 13.3 15 10 10 5 5 0 0 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 % EUROPE BRANDED NABROW % 30 27.6 27.7 39.5
Slide 26: Thank You
THANK YOU
Scandinavian Tobacco Group — Q2 2025 Earnings Presentation on 6ix