Scandinavian Tobacco Group Full-Year 2022 Reports

In 2022, the Scandinavian Tobacco Group delivered a 3.5 percent negative organic EBITDA( Earnings Before Interest, Taxes, Depreciation, and Amortization) growth in line with the guidance range of minus-4 percent to 0 percent, free cash flow before acquisitions at $184.5 million and an increase in adjusted earnings per share (EPS) of 8 percent. For the full year of 2023, net sales and EBITDA margin before special items are expected in the range of DKK9 billion to DKK9.3 billion, 24% to 25%.

CEO Niels Frederiksen said, “In a challenging year, we have made good progress on our strategy ‘Rolling Toward 2025.’ Our vision is to become the undisputed and sustainable global leader in cigars. The recent Alec Bradley cigar business acquisition brings us one step closer to achieving this. Our ambition of becoming a larger company, growing our EBITDA margin over time, and generating outstanding cash flow are all important pillars for creating continuous shareholder value. I am confident we will make further progress in 2023 on our long-term strategy.”

On April 13, 2023, the board of directors will propose an increase in the ordinary dividend of 10 percent to DKK8.25 per share at the annual general meeting. The group will report on and publish expectations for reported net sales and EBITDA margin before special items instead of organic EBITDA growth in the financial statements. 

Reference: Scandinavian Tobacco Group Reports Full-Year 2022 Results