STG's Net Sales and EBITDA Drop in Q2 2022

Aug.26.2022
STG's Net Sales and EBITDA Drop in Q2 2022
STG's net sales and EBITDA fell in Q2 2022 due to lower productivity, but improvements expected in H2.

The Scandinavian Tobacco Group (STG) has reported a 2% drop in net sales and a 15% drop in earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q2 2022 compared to the same quarter last year, when they were performing strongly. The company attributes this to lower than expected productivity in their supply chain leading to decreased output and increased costs. While the STG anticipates improvements in the second half of the year, delays are expected to have a negative impact on their full-year net sales and costs.


Source: STG


According to STG, the production backlog reached a level close to 150 million Danish kroner ($20.212 million) by the end of July. The company stated, "However, with these improvements and cross-product pricing initiatives, we expect to resume EBITDA growth in the second half of the year.


According to Nils Frederiksen, CEO of Scandinavian Tobacco Group (STG), the year 2022 will be a difficult one for the company. He stated that they will have to adjust their expectations for organic EBITDA growth for the entire year. This disappointing development is primarily driven by challenges in their supply chain and secondly by more cautious consumer behavior, particularly in the important US handmade cigar market.


Despite this, we are maintaining strong financial expectations for cash flow and positive earnings per share growth in 2022, and are continuing to implement our strategic plans towards 2025. The acquisition of Room101 and our ongoing expansion in the US retail market are prime examples. Overall, we remain confident in the strength of our core business and cash flow.


Translation: Statement.


This article is compiled based on third-party information and is intended for industry sharing and learning.


This article does not represent the views of 2FIRSTS and 2FIRSTS cannot verify the authenticity and accuracy of the article's content. The translation of this article is solely for the purpose of industry exchange and research.


Due to limitations in the level of translation, the translated article may not fully reflect the original text. Please refer to the original article for accuracy.


2FIRSTS is completely aligned with the Chinese government on any domestic, Hong Kong, Macau, Taiwan, and foreign-related expressions and positions.


The copyright of the compiled information belongs to the original media and authors. If there is any infringement, please contact us for deletion.



Disclaimer

This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.

Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.

The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.

This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.

 

Copyright Notice

This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.

No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.

For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.

 

AI-Assisted Translation and Editing Notice

Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.

Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.

  South Korea Reopens Cigarette Tax Debate as 63% Back Higher Tobacco Taxes
South Korea Reopens Cigarette Tax Debate as 63% Back Higher Tobacco Taxes
South Korea’s cigarette tax debate has resurfaced after the Ministry of Health and Welfare said tobacco price policy needed review, with a poll showing 63% of respondents support higher tobacco taxes.
Regulations
Jun.22
Altria’s USSTC to Close Nashville Plant and Shift Operations to Kentucky by 2028
Altria’s USSTC to Close Nashville Plant and Shift Operations to Kentucky by 2028
U.S. Smokeless Tobacco Company (USSTC), a subsidiary of Altria Group, announced plans to close its Nashville manufacturing facility by 2028 and consolidate production operations at a new facility in Hopkinsville, Kentucky.
Market
Jun.02
2Firsts Data | China’s Vape Exports Rise 3.1% in H1 2026 as 6-Methyl Nicotine-Related Products Surge 65.2%
2Firsts Data | China’s Vape Exports Rise 3.1% in H1 2026 as 6-Methyl Nicotine-Related Products Surge 65.2%
China’s vape exports showed resilience in the first half of 2026 after a short-term shock from China’s export rebate adjustment. But customs data points to more than a simple recovery: the structure of growth is changing. Vaping devices and atomization hardware emerged as the strongest growth driver, while nicotine-containing vaping products remained broadly stable. Meanwhile, nicotine substitute-related products represented by 6-methyl nicotine expanded rapidly, becoming a new category to watch for both industry and regulators. After the U.S. market went through a cycle of shortages, replenishment and inventory rebuilding in 2025, China’s vape supply chain is entering a new phase of reallocation.
Special Report
Jul.20
China Tobacco International HK Warns First-Half Revenue May Fall 25%-30%, Tobacco Leaf and Duty-Free Exposure Highlight Reliance on Traditional Tobacco
China Tobacco International HK Warns First-Half Revenue May Fall 25%-30%, Tobacco Leaf and Duty-Free Exposure Highlight Reliance on Traditional Tobacco
CTIHK expects first-half 2026 revenue to fall 25%-30%, mainly due to lower tobacco leaf imports and delayed cigarette shipments to China’s domestic duty-free market. Its 2025 revenue mix—nearly 90% from tobacco leaf-related businesses and less than 1% from new tobacco products—shows continued exposure to traditional supply chains and trade variables.
Jun.18
Australia’s Daily Smoking Rate Falls to Record Low of 5.8% as Nicotine Use Patterns Shift
Australia’s Daily Smoking Rate Falls to Record Low of 5.8% as Nicotine Use Patterns Shift
According to the Australian Institute of Health and Welfare’s National Drug Strategy Household Survey, daily smoking among Australians aged 18 and over fell to a record low of 5.8% in 2025. Health Minister Mark Butler said Australia now has around 500,000 fewer daily smokers than three years ago and credited the government’s vaping reforms as part of broader progress. Among people aged 14 and over, daily smoking declined from 8.3% in 2022-23 to 5.6% in 2025. Daily vaping rates stabilised at 3.6%, while the government also moved to further restrict access to nicotine pouches through unapproved therapeutic import pathways.
Jul.21
French Vape Distributor Kumulus Vape Yields About 3% as Earnings Growth Stalls
French Vape Distributor Kumulus Vape Yields About 3% as Earnings Growth Stalls
Listed French vape distributor Kumulus Vape will trade ex-dividend on June 26, 2026, and pay an annual dividend of €0.10 per share on June 30, with Simply Wall St saying the payout is covered by profit and free cash flow, while weak earnings growth remains a concern.
Industry InsightMarketNews
Jun.24