Company Announcement
No.9 2019

 

                                                                                                      Copenhagen, 29 August 2019

Scandinavian Tobacco Group A/S - Interim report, 1 January-30 June 2019

Organic EBITDA growth of 5.5% in the second quarter of 2019 supporting the full-year guidance

Q2 2019 Highlights

  • Net sales of DKK 1,818 million (DKK 1,780 million). Organic growth -0.9%
  • EBITDA before special items of DKK 398 million (DKK 346 million). Organic growth 5.5%
  • EBITDA margin before special items was 21.9% (19.4%). Excluding IFRS 16, the margin improved by 1.2%-points
  • Free cash flow before acquisitions of DKK 243 million (DKK 213 million)
  • Earnings Per Share (EPS) of DKK 2.0 (DKK 2.1) In the second quarter of 2019, Scandinavian Tobacco Group A/S delivered net sales of DKK 1,818 million and EBITDA before special items of DKK 398 million. The quarter delivered 1.6% organic growth in net sales in North America Online & Retail which was offset by negative organic growth in net sales in North America Branded, Region Machine-Made Cigars and Region Smoking Tobacco & Accessories of 4.2%, 1.4% and 1.6%, respectively. Overall, organic growth in net sales was negative by 0.9%. Underlying EBITDA margins improved in North America Online & Retail, Region Machine-Made Cigars and Region Smoking Tobacco & Accessories, but declined in North America Branded.

    In the first six months of 2019, the Group reported negative organic net sales growth of 1.2% and organic EBITDA growth of 6.2%, generating a free cash flow before acquisitions of DKK 316 million (DKK 137 million). EPS of DKK 3.0 (DKK 2.9)

    CEO of Scandinavian Tobacco Group Niels Frederiksen says: “We are delivering an organic EBITDA growth of 5.5% and a free cash flow of DKK 243 million in the quarter. We saw positive organic sales growth in North America Online & Retail and in Machine-Made Cigars we are seeing a stable market share in key European markets. The execution of our transformational program Fuelling the Growth continues to positively affect our Group wide operational performance and cost efficiency.” Financial guidance for 2019
    The full-year guidance is unchanged:
  • >5% organic growth in EBITDA
  • Special items of DKK ~85 million
  • Free cash flow before acquisitions >DKK 750 million

Conference Call and Webcast

A conference call and webcast will be held on 29 August 2019 at 10:00 AM CET. Presentation materials will be available online approximately one hour before the webcast on investor.st-group.com.

Dial-in details:

Denmark:       +45 3272 7518

The UK:          +44 (0) 203 009 5710

The US:          +1 917 720 0178

Passcode:      2393453
https://edge.media-server.com/mmc/p/3d48dea4

For further information, please contact:
Investors: Torben Sand, Head of Investor Relations,
phone: +45 5084 7222 or torben.sand@st-group.com

Media: Simon Mehl Augustesen, Director of Group Communications,
phone: +45 5084 7211 or simon.augustesen@st-group.com

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