Scandinavian Tobacco Group (STG), the world’s largest cigar company, reported its financial results for Q3 2023.

Revenues were DKK 2.362 billion ($318.72 million), a decline of -1.4 percent organic growth according to the company. EBITDA before special items, a measure of profit, was DKK 631 million ($85.15 million), a decline of -6.2 percent.

(In Millions of DKK)Net SalesEBIDTA Before Special ItemsFree Cash Flow
Q3 20232,362631462
Q2 20222,278544143
Q1 20221,938532129
Q4 20212,012474307
Q3 20212,182627564
Q2 20212,156606434
Q1 20211,88352789
Q4 20201,992397238
Q3 20202,231914609

Before the fiscal year, STG predicted that sales would return to pre-COVID-19 levels during the latter half of 2023, something that was cited in its results. It also highlighted inflation, supply chain and “continued promotional pressure in the online business.” As for the latter, for much of 2022, STG’s online cigar retail business, headed by Cigars International, has faced aggressive sitewide discounts from its largest competitor, JR Cigar.

“In the current environment I’m pleased with our performance for the third quarter, delivering solid cash flows and positive EPS growth, which is in-line with our financial expectations for the full year of 2022,” said Niels Frederiksen, ceo of STG, in a statement. “We are driving productivity improvements in the supply chain, an issue we have faced in recent quarters which continues to be our most important short-term priority.”

He also said that the new Cigars International Super Store in San Antonio is “off to a very strong start.”

With these results, guidance for 2022 remains unchanged: EBITDA growth between -4 and 0 percent, free cash flow before acquisitions in the range of DKK 1.1-1.4 billion, and adjusted EPS growth of less than 5 percent. The company expects its European branded and North American retail business to drive revenues in Q4 but says that its North America Branded & Rest of World division will perform worse than it did in 2021 on a revenue basis.

STG is the parent company of Cigars International, General Cigar Co., Thompson Cigar, Forged Cigar Co., Agio and other businesses throughout the U.S. and international markets. Its stock is publicly-traded on the NASDAQ Copenhagen.

Charlie Minato

I am an editor and co-founder of halfwheel.com/Rueda Media, LLC. I previously co-founded and published TheCigarFeed, one of the two predecessors of halfwheel. I handle the editing of our written content, the majority of the technical aspects of the site and work with the rest of our staff on content management, business development and more. I’ve lived in most corners of the country and now entering my second stint in Dallas, Texas. I enjoy boxing, headphones, the Le Mans 24-hour, wearing sweatshirts year-round and gyros. echte liebe.