| Company Announcement|
Copenhagen, 8 March 2018
Annual Report 2017
Full Year Results in Line with Guidance. 4.5% Increase in Proposed Ordinary Dividend per Share.
Scandinavian Tobacco Group A/S delivered organic growth in net sales and EBITDA in accordance with our guidance presented in May 2017. The Board of Directors proposes an ordinary dividend of DKK 5.75 per share, an increase of 4.5% compared to 2016.
Financial Guidance 2018
For the full year 2017 Scandinavian Tobacco Group A/S delivered DKK 6,464 million in total net sales and an adjusted EBITDA of DKK 1,283 million. This equals a 2.2% negative organic growth in net sales and an organic decline of 7.4% in EBITDA. Net profit for the year increased by 4.4% to DKK 712 million while free cash flow was DKK 955 million (DKK 1,139 million). Organic growth in net sales and EBITDA was delivered in accordance with the revised guidance presented in May 2017.
CEO Niels Frederiksen says:
"2017 was a financially challenging year for Scandinavian Tobacco Group due to the IT implementation in Cigars International. However, our underlying business remains strong with an adjusted EBITDA of DKK 1,283 million and with a free cash flow close to DKK 1 billion we are able to continue our track record of delivering attractive shareholder returns. In total, we will return DKK 925 million to our shareholders for 2017.
Also, we have during the year strengthened our business significantly. In the US, our single biggest market, we are expanding our retail platforms. We announced the opening of two large cigar retail stores in 2018 in Texas and in January 2018, we reinforced our position in the online retail channel by signing a deal to acquire the business of Thompson and Co. of Tampa, Inc. Furthermore, we have in our biggest category, machine-made cigars, regained momentum with stronger market share performance in a number of markets through intensified strategic focus on innovation and core brands."
The annual report for 2017 is available for download on: investor.st-group.com.
Conference Call and Webcast
A conference call and webcast will be held on 8 March 2018 at 10:00 AM CET.
Presentation materials will be available online approximately one hour before the webcast on investor.st-group.com.
Denmark: +45 35 15 80 49
The UK: +44 (0) 330 336 9105
The US: +1 323 794 2551
For further information, please contact:
For media enquiries: Simon Mehl Augustesen, Director of Group Communications, phone: +45 7220 7152 or firstname.lastname@example.org
For investor enquiries: Torben Sand, Head of Investor Relations, phone: +45 7220 7126 or email@example.com