In This Article:
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Net Sales: Exceeded DKK9 billion for the first time, driven by the inclusion of Mac Baren and growth enablers.
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EBITDA Margin: 22.6%, lower than the previous year but within original guidance.
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Free Cash Flow: DKK931 million before acquisitions.
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Adjusted Earnings Per Share: DKK13.7.
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Mac Baren Acquisition: Total transaction value over DKK500 million, expected synergies of DKK150 million by 2027.
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Retail Superstores Growth: 6% growth in handmade cigars in the US, with two new stores opened in the quarter.
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Machine-Rolled Cigars Market Share: 28.1% in Europe, slightly up from the full-year market share of 27.9%.
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Smoking Tobacco Sales: 50% increase in reported net sales, driven by Mac Baren and 12% organic growth.
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Next Generation Products Growth: 118% full-year growth, with high-double-digit growth in nicotine pouch brand XQS.
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Net Debt: Increased by DKK1.4 billion to DKK5.4 billion, with a leverage ratio of 2.6 times.
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Shareholder Returns: Close to DKK1.5 billion returned, with a proposed dividend of DKK8.50 per share.
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2025 Expectations: Net sales between DKK9.2 billion to DKK9.7 billion, EBITDA margin of 20% to 23%, and free cash flow of DKK800 million to DKK1.1 billion.
Release Date: March 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Scandinavian Tobacco Group AS (SNDVF) reported net sales exceeding DKK9 billion for the first time, driven by the acquisition of Mac Baren and growth enablers.
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The company returned almost DKK1.5 billion to shareholders through dividends and share buybacks.
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The acquisition of Mac Baren is expected to generate synergies of DKK150 million by 2027, enhancing the company's position in smoking tobacco categories.
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The company's nicotine pouch brand XQS showed high-double-digit growth, particularly in Sweden, contributing positively to the next generation products category.
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Scandinavian Tobacco Group AS (SNDVF) has made significant progress in its sustainability agenda, aligning with the EU corporate sustainability reporting directive.
Negative Points
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The EBITDA margin decreased to 22.6% from the previous year, impacted by investments in growth enablers and market position strengthening.
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The market for handmade cigars in the US remains challenged by uncertain consumer sentiments, with consumption declining by a mid-single digit percentage.
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Machine-rolled cigars in Europe saw a market decline of 2.8%, with uncertainties about whether this trend will continue.
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The company's leverage ratio increased to 2.6 times, up from 1.9 times at the end of 2023, due to capital allocations and the Mac Baren acquisition.
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Scandinavian Tobacco Group AS (SNDVF) does not anticipate initiating a new share buyback during 2025, aiming to maintain flexibility in its capital structure.