Scandinavian Tobacco Group (STG) has announced its financial results for the second quarter of 2019.

Revenue fell .9 percent compared to 2018 with the company generating DKK 1.818 billion ($269.58 million). EBITDA before special items—a method of measuring profit—increased 5.5 percent to DKK 398 million ($59.02 million).

STG owns General Cigar Co.—one of the largest U.S. cigar companies with brands like Macanudo, Cohiba and CAO—as well as retailers Cigars International and Thompson Cigar Co., and a variety of other tobacco businesses like machine-made cigars, snuff and pipe tobacco.

The company said that its North American retail business delivered 1.6 percent growth in sales, but its North American Branded business, i.e. General Cigar Co., was down 4.2 percent in the quarter.

Despite the drop in revenue, the company’s efficiency improvements are working as STG has seen top line revenue drop 1.2 percent in the first six months of 2019, while EBITDA has 6.2 percent positive growth.

“We are delivering an organic EBITDA growth of 5.5% and a free cash flow of DKK 243 million in the quarter,” said Niels Frederiksen, ceo of STG, in a press release.” 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.”

STG’s stock, which has been struggling of late, was up 3.4 percent following the news.

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Charlie Minato

I am an editor and co-founder of Media, LLC. I previously co-founded and published TheCigarFeed, one of the two predecessors of halfwheel. I have written about the cigar industry for more than a decade, covering everything from product launches to regulation to M&A. In addition, I handle a lot of the behind-the-scenes stuff here at halfwheel. I enjoy playing tennis, watching boxing, falling asleep to the Le Mans 24, wearing sweatshirts year-round and eating gyros. echte liebe.