STG Reports $1.01 Billion in Revenue for 2019

Scandinavian Tobacco Group (STG)—parent of General Cigar Co., Cigars International and others—has reported its 2019 fiscal results.

The company generated DKK 6.87 billion ($1.01 billion) in revenue with an EBITDA before special items—a measure of profit—of DKK 1.187 billion ($174.54 million).

STG says the EBIDTA number represents an increase of 7.1 percent compared to 2018. Last year, the company reported DKK 6.718 billion ($1.018 billion) in revenue and DKK 1.304 billion ($197.74 million) in EBIDTA before special items.

“In 2019, we saw strong financial performance across our four divisions with 7.1 percent organic EBITDA growth and free cash flow before acquisitions of DKK 1,187 million,” said Niels Frederiksen, ceo fo STG, in a statement. “During the year we also took significant steps in shaping the future of Scandinavian Tobacco Group by announcing our biggest acquisition in recent history; namely Royal Agio Cigars, and by accelerating the implementation of Fuelling the Growth, our Group wide transformational program.”

The company announced that it will propose an increase in its dividends to DKK 6.10 (90 cents) per share. Furthermore, the company will propose a share buyback of up to DKK 300 million ($44.11 million).

It has announced 2020 guidance for an EBIDTA increase of greater than 3 percent and expects free cash flow before acquisitions of DKK 850 million ($124.98 million).

In addition to General Cigar Co. and Cigars International, STG also has a large machine-made cigar brand, led by the Café Creme brand. It also owns Thompson Cigar, Cigarbid and others.

Late last year, STG announced that it had purchased Royal Agio Cigars for €210 million ($234.59 million). Because that deal closed on Jan. 2, Agio’s sales are not included in the aforementioned numbers. For reference, Agio generated €133 million ($148.58 million) in revenue in 2018.

STG, which is traded on NASDAQ Copenhagen, closed at DKK 88.30 ($12.98), up 3.76 percent.