Scandinavian Tobacco Group A/S reports Q1 results, maintains guidance for 2022 and presents revised Sustainability Strategy

·3 min read
Scandinavian Tobacco Group A/S
Scandinavian Tobacco Group A/S

Company Announcement
No. 34/2022

 Copenhagen, 19 May 2022

Interim report, 1 January - 31 March 2022

Scandinavian Tobacco Group A/S reports Q1 results, maintains guidance for 2022 and presents revised Sustainability Strategy

For the first quarter of 2022 Scandinavian Tobacco Group delivered 2% negative organic net sales growth and 3% negative organic EBITDA growth in line with the previously communicated expectations for the quarter. The guidance for the full year of an organic EBITDA growth in the range of 0-6% is maintained. The uncertainty related to key assumptions like consumer behaviour, cost inflation and supply-chain stability remains high. The current share buy-back programme is increased by DKK 300 million to reach up to DKK 1,000 million reflecting the strong financial position of Scandinavian Tobacco Group.

Consumer demand for handmade cigars in the US remained robust in the quarter though with signs at the end of the quarter of a return to the structural declining volume trend. Price increases across most product categories almost offset increasing cost inflation and supported the financial performance compared with a strong first quarter of 2021.

Q1 Highlights

  • Net sales were DKK 1,938 million (DKK 1,883 million) with -1.7% organic growth.

  • EBITDA before special items was DKK 532 million (DKK 527 million) with -2.7% organic growth. The EBITDA margin was 27.4% (28.0%).

  • Adjusted Earnings Per Share (EPS) were DKK 3.6 (DKK 3.4).

  • Free cash flow before acquisitions was DKK 129 million (DKK 89 million).

  • Return on Invested Capital was 14.4% (10.7%).

CEO Niels Frederiksen: “We deliver a satisfactory first quarter result in line with our expectations with negative organic EBITDA growth against a very strong first quarter last year and a continued strong cash flow. We continue the execution of our strategy “Rolling Towards 2025” and today we are very excited to present a revised, more ambitious sustainability strategy which anchors our environmental and social commitment in the company’s culture”.

Launch of updated Sustainability strategy

Today, we launch an updated, more ambitious, and comprehensive sustainability strategy. In line with our intention to invest further in sustainability as announced in March, we have now established two strategic pillars to address climate change and enhance our social commitment in the communities where we operate. The two pillars are: Net Zero along the Journey of the Leaf and Sustainable Community Pioneers. We will continue our focus and efforts within Diversity, Equity and Inclusion and Corporate Ethics. Our commitment to the updated Sustainability Strategy is reflected in our revised vision “Be the undisputed and sustainable global leader in cigars” and an estimated investment in 2022 of up to DKK 20 million.

Financial Guidance 2022 unchanged

  • EBITDA: Organic growth in the range 0-6%

  • Free cash flow before acquisitions in the range DKK 1.1-1.4 billion

  • Adjusted EPS >5% increase

For the second quarter we still expect organic net sales and organic EBITDA growth to be negative, whereas we expect growth to resume in the second half of the year.

For further information, please contact:
Torben Sand, Head of Investor Relations, phone +45 5084 7222 or

A conference call will be held on 20 May 2022 at 10.00 CEST. Dial-in information and an accompanying presentation will be available at around 09:00 CEST.


Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting