Scandinavian Tobacco Group A/s · OMXCOP:STG
Scandinavian Tobacco Group A/s — Q1 2025 Earnings Presentation
25 slides from Scandinavian Tobacco Group A/s's earnings presentation, May 21, 2025
Slide 1: Creating Moments of Enjoyment
CREATING MOMENTS OF ENJOYMENT Investor Presentation Q1 2025 Results 21 May 2025
Slide 2: A Global Leader in Cigars: Corporate Summary
A GLOBAL LEADER IN CIGARS CORPORATE SUMMARY* NO. 1 HANDMADE CIGAR PLAYER IN USA Market cap Share price Shares Outstanding NO. 1 MACHINE-ROLLED CIGAR PLAYER IN EUROPE DKK 7.0 billion DKK 88 78.7 million GLOBAL CONSUMER BASE STRONG M&A TRACK-RECORD Major Shareholders Investor Shareholding PRODUCT CATE
Slide 3: Agenda
AGENDA Financial Expectations 2025 Niels Frederiksen, Chief Executive Officer First Quarter 2025 Highlights and Strategy Update Niels Frederiksen, Chief Executive Officer Product Categories NIELS FREDERIKSEN MARIANNE RØRSLEV BOCK Niels Frederiksen, Chief Executive Officer Chief Executive Officer Chi
Slide 4: Financial Expectations 2025
FINANCIAL EXPECTATIONS 2025 NIELS FREDERIKSEN, CEO
Slide 5: Adjusted Financial Expectations 2025
Q1 2025 RESULTS ADJUSTED FINANCIAL EXPECTATIONS 2025 TARIFF INCREASES, USD EXCHANGE RATE AND FLEXIBILITY TO PROTECT MARKET SHARES NET SALES EBITDA MARGIN FREE CASH FLOW ADJUSTED EPS Before special items Before acquisitions 2025 NEW In the range of In the range of In the range of In the range of DKK
Slide 6: Q1 2025 Highlights and Strategy Update
Q1 2025 HIGHLIGHTS STRATEGY UPDATE NIELS FREDERIKSEN, CEO
Slide 7: Q1 2025 Highlights
Q1 2025 HIGHLIGHTS • Reported net sales growth by 1.3% driven by Mac Baren acquisition and XQS growth • Organic net sales decreased by 8.8% impacted by the discontinued ZYN distribution, lower sales of handmade cigars and phasing • EBITDA margin decrease of 1%-points: Mix changes and investments in
Slide 8: 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 Retail store expansion VISION BE THE UNDISPUTED & SUSTAINABLE GLOBAL LEADER IN CIGARS Market positions in MRC and HMC Nicotine pouches AMBITION LARGER GROWING EBITDA OUTSTANDING C
Slide 9: Product Categories
PRODUCT CATEGORIES NIELS FREDERIKSEN, CEO
Slide 10: Handmade Cigars
Q1 2025 RESULTS HANDMADE CIGARS • US volume decline continued in the quarter • Business To Business impacted by timing of major trade show (in April 2025) • Online channels: Mid single digit decline • Retail channel: Double digit growth with same-store-sales slightly up • US consumer sentiment and i
Slide 11: Machine-Rolled Cigars & Smoking Tobacco
Q1 2025 RESULTS MACHINE-ROLLED CIGARS & SMOKING TOBACCO • Machine-Rolled Cigars: Total market decline rate stabilising • The volume market shares negatively impacted during SAP implementation • Production and shipments have normalized and market shares are recovering in April / May • Smoking Tobacco
Slide 12: Next Generation Products
Q1 2025 RESULTS NEXT GENERATION PRODUCTS • XQS brand deliver strong growth of 41% • XQS market share in Sweden now above 11% • Streamlining of Ace and Gritt to fewer markets impacting organic growth • Discontinuation of ZYN distribution impacts organic growth negatively by 34% Net Sales (DKKb) • Rep
Slide 13: Divisions & Group Financials
DIVISIONS & GROUP FINANCIALS MARIANNE BOCK, CFO
Slide 14: Europe Branded
Q1 2025 RESULTS EUROPE BRANDED KEY BRANDS: Q1 2025 • Negative organic growth in MRC and Handmade Cigars, Smoking Tobacco unchanged and NGP +21% • Acquisitions impacted reported growth by 15% Net Sales (DKKb) EBITDA margin • SAP implementation impacted shipments negatively with normalization in April
Slide 15: North America Branded & ROW
Q1 2025 RESULTS NORTH AMERICA BRANDED & ROW KEY BRANDS: Q1 2025 • Reported growth impacted by Mac Baren acquisition (+9.5%) and FX (+1.5%) Net Sales (DKKb) EBITDA margin • Decrease in organic growth reflecting double-digit decline in handmade cigars and machine-rolled cigars +0.2% p -2.0% 31.2% 31.4
Slide 16: North America Online & Retail
Q1 2025 RESULTS Q4 & FULL YEAR 2024 RESULTS NORTH AMERICA ONLINE & RETAIL KEY BRANDS: Q1 2025 • Organic sales growth -2%, excluding the discontinuation of the ZYN distribution • Retail stores delivered 25% growth with same-store sales slightly up • Online business decreased by 5% Net Sales (DKKb) EB
Slide 17: Q1 2025 Results
Q1 2025 RESULTS DKK million Q1 2025 Q1 2024 FY 2024 Net sales 1,974 1,948 9,202 Gross profit (before special items) 867 881 4,279 OPEX -561 -550 -2,248 Other income 11 4 49 EBITDA before special items 317 335 2,079 Special items -70 -30 -279 EBIT 136 208 1,380 Net financials -73 -54 -186 Net profit
Slide 18: Key KPI's
Q1 2025 KEY KPI´S Q1 2025 Q1 2024 FY 2024 Organic net sales growth -8.8% -2.1% 0.4% Gross margin 43.9% 45.2% 46.5% OPEX ratio 28.4% 28.2% 24.4% EBITDA margin 16.1% 17.2% 22.6% 18
Slide 19: Net Debt and Leverage
Q1 2025 RESULTS NET DEBT AND LEVERAGE Q1 2025 7 5.5 • Net debt decreased by DKK 0.2 billion versus end 2024 5.0 6 5.4 5.2 4.5 • Leverage ratio improvement from 2.6x to 2.5x reflects 4.0 5 cash flow generation 4.1 3.5 4 3.6 2.6 3.0 3.3 2.5 3 2.5 1.9 1.5 1.6 2.0 2 1.5 1.0 1 0.5 0 0.0 2021 2022 2023 20
Slide 20: 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 21: 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 Q1 interim report Torben Sand Eliza Dabbagh Scandinavian Tobacco Gro
Slide 22: Product Category Performance
Q1 2025 RESULTS PRODUCT CATEGORY PERFORMANCE Q1 2025 FY 2024 Share of Share of Organic Reported Organic Reported Group Net Group Net Growth (%) Growth (%) Growth (%) Growth (%) sales (%) sales (%) Handmade Cigars 34% -9% -6% 36% 1% 2% MRC and Smoking Tobacco 51% -3% 11% 48% -2% 3% Next Generation Pr
Slide 23: Long Term Trend - EBITDA Margins Q1 2019-Q1 2025
LONG TERM TREND - EBITDA MARGINS Q1 2019-Q1 2025 % THE GROUP % NAOR 30 28.0 27.4 20 24.1 17.5 25 13.6 13.9 20 18.5 15 13.2 12.5 16.7 17.2 16.1 11.9 15 10 9.3 10 5 5 0 0 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Q1 24 Q1 25 EUROPE BRANDED NABROW % % 30 28.5 50 26.7 42.4
Slide 24: 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 25: Thank You
THANK YOU
Scandinavian Tobacco Group — Q1 2025 Earnings Presentation on 6ix