Scandinavian Tobacco Group A/s · OMXCOP:STG
Scandinavian Tobacco Group A/s — FY 2024 Earnings Presentation
26 slides from Scandinavian Tobacco Group A/s's earnings presentation, Mar 7, 2025
Slide 1: Creating Moments of Enjoyment - Full Year 2024 Results
CREATING MOMENTS OF ENJOYMENT Investor Presentation Full Year 2024 Results 7 March 2025
Slide 2: Corporate Summary - A Global Leader in Cigars
FY 2024 RESULTS CORPORATE SUMMARY* A GLOBAL LEADER IN CIGARS Market cap Share price Shares Outstanding • NO. 1 HANDMADE CIGAR PLAYER IN • GLOBAL CONSUMER BASE USA DKK 8.6 billion DKK 109 78.7 million • NO. 1 MACHINE-ROLLED CIGAR • STRONG M&A TRACK-RECORD PLAYER IN EUROPE Major Shareholders Investor
Slide 3: Agenda
FY 2024 RESULTS AGENDA Full Year 2024 Highlights and Strategy Update Niels Frederiksen, Chief Executive Officer Product Categories Niels Frederiksen, Chief Executive Officer Commercial Divisions NIELS FREDERIKSEN MARIANNE RØRSLEV BOCK Marianne Rørslev Bock, Chief Financial Officer Chief Executive Of
Slide 4: Full Year 2024 Highlights - Strategy Update
FULL YEAR 2024 HIGHLIGHTS STRATEGY UPDATE NIELS FREDERIKSEN, CEO
Slide 5: FY 2024 Highlights
FY 2024 RESULTS FY 2024 HIGHLIGHTS • Good progress in Rolling Towards 2025 strategy • Acquisition of Mac Baren • Strengthening the platform for growth through investments • Financial performance in line with guidance • DKK 1.5 billion returned to shareholders FCF before Adjusted earnings Net Sales (
Slide 6: Strategy Update and Key Events
FY 2024 RESULTS STRATEGY UPDATE AND KEY EVENTS INVESTING IN THE FUTURE Acquisition of Mac Baren 3 new retail stores PURPOSE CRAFT THE RITUALS THAT MAKE US MORE MRC market positions One Process VISION BE THE UNDISPUTED & SUSTAINABLE GLOBAL LEADER IN CIGARS AMBITION LARGER COMPANY GROWING EBITDA MARGI
Slide 7: Product Categories
PRODUCT CATEGORIES NIELS FREDERIKSEN, CEO
Slide 8: Handmade Cigars
FY 2024 RESULTS HANDMADE CIGARS • US market continue to decline by an estimated mid-single digit percentage • Value-for-money demand and promotional pressure increasing • Stronger growth in international markets and through our distribution channels • Reported net sales growth: FY 2024 at 2.0% (orga
Slide 9: Machine-Rolled Cigars & Smoking Tobacco
FY 2024 RESULTS MACHINE-ROLLED CIGARS & SMOKING TOBACCO • Machine-Rolled Cigars: Total market decline improved in fourth quarter • Our market shares have stabilized. Now we invest to regain our positions • Smoking Tobacco: Position strengthened with Mac Baren brands Net Sales (DKKb) • Reported net s
Slide 10: Next Generation Products
FY 2024 RESULTS NEXT GENERATION PRODUCTS • XQS brand deliver strong growth and 10% market share in Sweden • Nicotine pouch portfolio narrowed to three brands • Close to DKK 250 million invested in category, incl. acquisition of XQS • Discontinued NGP distribution in US significantly impacts organic
Slide 11: Divisions & Group Financials
DIVISIONS & GROUP FINANCIALS MARIANNE BOCK, CFO
Slide 12: Europe Branded
FY 2024 RESULTS EUROPE BRANDED KEY BRANDS: Q4 2024 • Growth driven by Handmade Cigars and NGP • MRC & ST decreasing driven by MRC • Organic net sales growth -4.2% Net Sales (DKKb) EBITDA margin • Increasing sales and marketing expenses, Mac Baren and +7% 0.8 -3.1% p 0.8 NGP growth impact margin 24.7
Slide 13: North America Branded & ROW
FY 2024 RESULTS NORTH AMERICA BRANDED & ROW KEY BRANDS: Q4 2024 • Reported growth impacted by Mac Baren acquisition (+14%) and smoking tobacco Net Sales (DKKb) EBITDA margin • Organic net sales growth 3.5% • Margin driven by sales growth and lower OPEX +6.7% p +17% 0.9 39.3% FY 2024 0.7 32.6% • Repo
Slide 14: North America Online & Retail
FY 2024 RESULTS Q4 & FULL YEAR 2024 RESULTS NORTH AMERICA ONLINE & RETAIL KEY BRANDS: Q4 2024 • Organic net sales growth -2.4% • Excl. discontinued distribution business about +3.5% • Retail stores increased by 17% with same-store sales up 6% Net Sales (DKKb) EBITDA margin • Online business slightly
Slide 15: Q4 and Full Year 2024 Results
FY 2024 RESULTS Q4 AND FULL YEAR 2024 RESULTS DKK million Q4 2024 Q4 2023 FY 2024 FY 2023 Net sales 2,458 2,275 9,202 8,731 Gross profit (before special items) 1,162 1,089 4,279 4,204 OPEX -587 -584 -2,248 -2,111 Other income 21 12 49 12 EBITDA before special items 596 517 2,079 2,106 Special items
Slide 16: Q4 & Full Year 2024 Key KPIs
FY 2024 RESULTS Q4 & FULL YEAR 2024 KEY KPI´S DKK million Q4 2024 Q4 2023 FY 2024 FY 2023 Organic net sales growth -1.0% 5.0% 0.4% 0.3% Gross margin 47.3% 47.9% 46.5% 48.2% OPEX ratio 23.9% 25.7% 24.4% 24.2% EBITDA margin 24.3% 22.7% 22.6% 24.1% 18
Slide 17: Net Debt and Leverage
FY 2024 RESULTS NET DEBT AND LEVERAGE FY 2024 7 5.5 • Net debt increased by DKK 1.4 billion versus 2023 5.0 6 5.4 4.5 • Leverage ratio impacted by the DKK 535 million 4.0 5 acquisition of Mac Baren and capital allocations of 4.1 3.5 4 3.6 3.0 3.3 3.3 2.6 DKK 1.5 billion 2.5 3 1.9 1.8 2.0 1.5 1.6 Q4
Slide 18: Shareholder Returns and Annual General Meeting
FY 2024 RESULTS SHAREHOLDER RETURNS AND ANNUAL GENERAL MEETING FY2024 • DKK 850 million share buy-back completed in November • DKK 1.5 billion returned incl. dividends • Holding of treasury shares at 7.3 million (8.45% of capital) DKKb Annual General Meeting 9 April 2025 1.5 1.5 1.5 1.0 1.2 • Propos
Slide 19: Financial Expectations 2025
FINANCIAL EXPECTATIONS 2025 NIELS FREDERIKSEN, CEO
Slide 20: Financial Expectations 2025
FY 2024 RESULTS FINANCIAL EXPECTATIONS 2025 NET SALES EBITDA MARGIN FREE CASH FLOW ADJUSTED EPS Before special items Before acquisitions 2024 ACTUAL DKK 0.9 billion DKK 13.7 DKK 9.2 billion 22.6% NET SALES EBITDA MARGIN FREE CASH FLOW ADJUSTED EPS Before special items Before acquisitions 2025 In the
Slide 21: Questions and Answers
FY 2024 RESULTS 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-
Slide 22: 2025 Event Calendar & Contact
FY 2024 RESULTS 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 14 MAY 2025 Q1 interim report Torben Sand Eliza Dabbagh Scandina
Slide 23: Product Category Performance
FY 2024 RESULTS PRODUCT CATEGORY PERFORMANCE Q4 2024 FY 2024 Share of Share of Organic Reported Organic Reported Group Net Group Net Growth (%) Growth (%) Growth (%) Growth (%) sales (%) sales (%) Handmade Cigars 34% -1% 1% 36% 1% 2% MRC and Smoking Tobacco 50% 2% 12% 48% -2% 3% Next Generation Prod
Slide 24: Long Term Trend - EBITDA Margins Q4 2018-Q4 2024
FY 2024 RESULTS LONG TERM TREND - EBITDA MARGINS Q4 2018-Q4 2024 % THE GROUP % NAOR 30 25 25.3 25.8 24.3 25 23.5 22.7 21.1 21.1 20.7 20 19.1 17.4 16.7 20 14.7 15 14.5 13.4 15 10 10 5 5 0 0 Q4 18 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 Q4 24 Q4 18 Q4 19 Q4 20 Q4 21 Q4 22 Q4 23 Q4 24 EUROPE BRANDED NABROW % % 3
Slide 25: Long Term Trend - EBITDA Margins FY 2018-FY 2024
FY 2024 RESULTS 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
Slide 26: Thank You
__ SCANDINAVIAN TOBACCO GROUP
Scandinavian Tobacco Group — FY 2024 Earnings Presentation on 6ix