Scandinavian Tobacco Group A/S: Interim Report, 1 January - 30 June 2023

Company Announcement
No. 27/2023

                                                                                                       Copenhagen, 29 August 2023

Interim Report, 1 January - 30 June 2023

Scandinavian Tobacco Group A/S Reports Second Quarter Results and Revised Outlook

For the second quarter of 2023, Scandinavian Tobacco Group A/S (the “Group” or “Scandinavian Tobacco Group”) delivered 2.3% negative net sales growth, an EBITDA margin of 23.1% and a free cash flow before acquisitions of DKK 159 million. The Group reports revised full year guidance as announced in Company Announcement no. 26/2023 on 29 August 2023 following a more volatile environment than expected and reflective of on-going inventory adjustments across customers and distributors, slower regain of market shares in Europe, delays in new store openings in US and changes in exchange rates. The expectation for the full year is based on some recovery in net sales growth for the second half of the year as well as a free cash flow before acquisitions slightly higher than compared with the second half of 2022. The financial performance for July and early August support the revised outlook.

The main uncertainties to the expectation for net sales relate to the volume development in Europe Branded and inventory adjustments with customers. The expectation for the EBITDA margin assumes a robust supply-chain and stable cost development.

Q2 Highlights

CEO Niels Frederiksen commented:
“On the back of a volatile environment we had to adjust our guidance even though we are continuing to make good progress on our ambition to grow the size of the company through retail expansion, acquisitions and portfolio diversification. In the second quarter, we completed the second acquisition of the year and opened another Cigars International retail Superstore. For the remainder of the year, we are focusing on leveraging the current strength of our online business and on building a stronger momentum in our Europe Branded business”.

Financial guidance 2023

For the financial year 2023, the guidance has been revised to: 

For further information, please contact:
Torben Sand, Head of IR & Communication, phone +45 5084 7222 or
Eliza Dabbagh, IR and Communication, phone +45 5080 7619 or

A conference call will be held on 30 August 2023 at 10.00 CEST. Dial-in information and an accompanying presentation will be available at around 09:00 CEST.