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.

Smoore Wins Three Heated Device Supply Lots in China Tobacco Jiangsu’s Overseas Market Project Covering Japan, South Korea and Southeast Asia
Smoore Wins Three Heated Device Supply Lots in China Tobacco Jiangsu’s Overseas Market Project Covering Japan, South Korea and Southeast Asia
China Tobacco Jiangsu Industrial Co., Ltd. (JSIC) has completed its 2026-2028 heated device procurement project, with Shenzhen Smoore Technology Limited securing final supply contracts for three lots: U1, C1 and C2. The project was launched through a public tender in June 2026 to support overseas markets and involved heated tobacco devices carrying JSIC’s “iRod” trademark. Candidate supplier results published on July 13 showed Smoore ranked first for the three awarded lots, while Shenzhen Yunxi Intelligent Technology Co., Ltd. and Shenzhen Bodi Technology Development Co., Ltd. participated in the bidding process.
Aug.03
Russia Adds Vapes to “Strategic Goods” List, Illegal Cross-Border Trade Faces Up to Five Years in Prison
Russia Adds Vapes to “Strategic Goods” List, Illegal Cross-Border Trade Faces Up to Five Years in Prison
Russia will place e-cigarettes and related nicotine products under its “strategic goods” framework from August 20, 2026. According to TVP World’s report published on August 19, the newly listed items include e-cigarettes, electronic smoking devices, vape liquids and nicotine salts. Individuals who illegally move these products across Russia’s customs border or its state border with other Eurasian Economic Union (EAEU) members could face up to five years in prison if shipment values exceed 100,000 rubles (about €1,000), provided all elements of a criminal offence are established.
Aug.20
BAT New Categories Revenue Rises 18% in H1 2026 as Broad Portfolio Offers More Ways to Win—and Lose
BAT New Categories Revenue Rises 18% in H1 2026 as Broad Portfolio Offers More Ways to Win—and Lose
British American Tobacco’s New Category revenue rose 18% at constant rates in the first half of 2026. Nicotine-pouch brand Velo expanded rapidly, while Vuse recovered as U.S. enforcement against illicit e-vapor products strengthened. Heated-tobacco platform glo remained under pressure, and cigarettes continued to provide most of the group’s profit and cash. Compared with PMI and JT, BAT has more routes to growth—but also greater regulatory, investment and execution risks across its broader portfolio.
BAT
Jul.30
BAT Calls for Retailer Input in Future Nicotine Regulations
BAT Calls for Retailer Input in Future Nicotine Regulations
British American Tobacco (BAT) has called for stronger retailer involvement in shaping future nicotine product regulations in the UK, arguing that frontline market feedback should be considered during policy development. BAT said retailers provide direct insight into consumer behavior, market changes and regulatory implementation challenges. The comments come as the UK nicotine market undergoes regulatory changes, including the disposable vape ban, Vaping Products Duty and efforts to address illicit vape sales.
Jul.29
Australian Coalition Unveils Illicit Tobacco Plan With 80% Excise Cut and Legal, Taxed Vapes and Nicotine Pouches
Australian Coalition Unveils Illicit Tobacco Plan With 80% Excise Cut and Legal, Taxed Vapes and Nicotine Pouches
Australia’s Coalition has unveiled a national illicit-tobacco policy that would cut tobacco excise by 80% and create legal, regulated and taxed adult markets for vaping products and nicotine pouches if it wins government. The plan proposes an excise of A$0.50 per millilitre of e-liquid and A$0.025 per milligram of nicotine in pouches, alongside A$200 million in additional enforcement and a A$60 million three-year public-awareness campaign. The Coalition says the package would narrow the price advantage of illicit products and undermine organised crime, while Labor and public-health groups warn that dramatically cheaper cigarettes could reverse long-term declines in smoking.
Sep.03
China’s Jiangsu Tobacco Monopoly Bureau and Drug Regulator Target Illegal Vape Sales Disguised as Medical Devices, Define Six Violations
China’s Jiangsu Tobacco Monopoly Bureau and Drug Regulator Target Illegal Vape Sales Disguised as Medical Devices, Define Six Violations
China’s Jiangsu Tobacco Monopoly Bureau and Jiangsu Provincial Medical Products Administration have issued a joint notice targeting illegal production and sales of vape products disguised as medical devices. The notice identifies six categories of violations, including obtaining medical licenses through false materials, misusing medical device credentials, expanding production beyond approved scopes, and using medical device-related online platforms to promote or sell vape products. The action is based on China’s tobacco and medical device regulations and aims to strengthen vape oversight and consumer protection.
Aug.04