Scandinavian Tobacco Group (STG)—the parent company of General Cigar Co., Cigars International, Thompson Cigar and others—generated DKK 1.791 billion ($263 million) in revenue for the first quarter 2020.
The number represents a 5 percent increase compared to 2019. Furthermore, the company earned DKK 326 million ($47.9 million in EBITDA before special items, a measure of a profit, in the quarter. That equates to organic growth of 23.9 percent compared to the same period last year.
“In the middle of (an) unprecedented global pandemic with a high degree of volatility and uncertainty in most markets, we are able to present a solid result for the first three months of 2020 with net sales growth and a strong cash flow as well as we have revealed the plans for creating significant value with the integration of Agio Cigars,” said Niels Frederiksen, ceo of STG, in a statement. “During these uniquely challenging times, I have been encouraged by the resilience of our business and by the dedication of our employees in keeping our business running and delivering on our promise to our consumers and customers.”
The company has revised its 2020 economic guidance due to the coronavirus COVID-19 pandemic. It now says that it expects to have more than 2 percent growth in EBITDA and free cash flow of DKK 850 million ($124.8 million).