The world’s largest cigar company started off 2018 in the right direction.
Scandinavian Tobacco Group (STG)—which owns Cigars International, General Cigar Co., Thompson Cigar and others—has announced its financial results for the first quarter and the company indicates they are positive. It reported revenues of DKK 1.285 billion ($203.63 million) and a net profit of DKK 88 million ($13.95 million)
The topline number is less than the DKK 1.379 billion ($206.77 million) it reported for the same quarter last year, but STG says with currency adjustments it has revenue growth of 3.5 percent and EBITDA growth, a measure of profit, of 1.2 percent.
“We’re pleased to see continued improvement in our handmade cigars category as the category is returning to healthy growth rates,” said Niels Frederiksen, ceo of STG, in a statement. “The first quarter is traditionally our smallest quarter and the machine-made cigars category was impacted by the new excise structures in France, but overall we are on track to deliver on our full year guidance.”
The company’s full-year guidance is for flat to slightly positive revenue with EBITDA growth of less than 3 percent.
Earlier this year, the company acquired Thompson Cigar Co. for $62 million. It indicated that Thompson generated $23.3 million in revenue for Q1 and that STG itself sold Thompson around $1.6 million in products during the quarter.
The Thompson deal didn’t close until April 2, so Thompson’s numbers are not part of STG’s Q1 results.