Scandinavian Tobacco Group A/S ( (SNDVF) ) has released its Q2 earnings. Here is a breakdown of the information Scandinavian Tobacco Group A/S presented to its investors.
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Scandinavian Tobacco Group A/S, a leading player in the tobacco industry, specializes in the production and sale of cigars, pipe tobacco, and fine-cut tobacco, with a significant presence in both the European and North American markets.
In its second quarter of 2025, Scandinavian Tobacco Group reported net sales of DKK 2.4 billion, with an organic net sales decline of 4%. The company’s EBITDA before special items was DKK 499 million, reflecting a margin of 21.1%, down from 24.5% the previous year. Despite challenging market conditions, the company reaffirmed its full-year expectations.
Key financial metrics for the quarter included a slight decrease in reported net sales by 0.2% and a decline in adjusted EPS to DKK 3.3 from DKK 4.1. The company’s free cash flow before acquisitions stood at DKK 119 million, impacted by changes in working capital. The integration of Mac Baren contributed positively to sales, while the discontinuation of ZYN distribution in the US and challenging market conditions affected growth.
Looking ahead, Scandinavian Tobacco Group maintains its financial expectations for 2025, projecting net sales between DKK 9.1-9.5 billion and an EBITDA margin of 18-22%. The company plans to launch a new strategy later in the year, focusing on stabilizing market shares and enhancing growth in key product categories.
Overall, Scandinavian Tobacco Group remains committed to navigating market challenges and leveraging strategic initiatives to drive future growth, with a focus on enhancing its market position and operational efficiency.