STG’s Stock Hits Record High, Company Announces Q3 2021 Earnings

Yesterday, Scandinavian Tobacco Group A/S (STG), one of the world’s largest cigar companies and one of the few publicly-traded firms, saw its stock hit record highs ahead of its Q3 earnings announcements.

Today, the company released its results for Q3 2021. While its profits were up slightly from 2020, revenue decreased slightly compared to the same quarter in 2020. Notably, it appears the cigar market is stabilizing to a point where STG didn’t raise guidance for later in the year, something it’s been doing quite regularly since the start of the pandemic.

STG says it generated DKK 2.182 billion ($340 million) in revenue, a 2.2 percent decline from 2020. EBITDA before special items—a measurement of profits—was DKK 627 million ($97.3 million), up .9 percent compared to last year.

That margin was helped by DKK 31 million in what the company says was “certain duty refunds in the US.”

Quarter	Net Sales (In Millions of DKK)	EBIDTA Before Special Items (In Millions of DKK)	Free Cash Flow (In Millions of DKK)
Q3 2024	2,431	568	275
Q2 2024	2,366	580	177
Q1 2024	1,948	335	(126)
Q4 2023	2,275	517	452
Q3 2023	2,300	602	622
Q2 2023	2,200	514	159
Q1 2023	1,963	474	(179)
Q4 2022	2,185	563	530
Q3 2023	2,362	631	462
Q2 2022	2,278	544	143
Q1 2022	1,938	532	129
Q4 2021	2,012	474	307
Q3 2021	2,182	627	564
Q2 2021	2,156	606	434
Q1 2021	1,883	527	89
Q4 2020	1,992	397	238
Q3 2020	2,231	914	609

“We deliver strong quarterly performance in line with expectations and maintain the positive momentum we have had throughout 2020 and 2021,” said Niels Frederiksen, ceo of STG, in a statement. “The combination of the integration of Agio Cigars, the growth in handmade cigars and our underlying transformation have significantly improved our performance and raised our earnings and margins levels. I remain proud and impressed with the way our organization has continued to deliver a strong performance throughout a challenging period”.

Notably, STG did not raise its guidance. The company has been doing so nearly once per quarter since the pandemic began.

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.

Shares of STG, which is traded on the NASDAQ Copenhagen, fell 6.2 percent today to DKK 134.6, though that fall is from the stock’s all-time high of DKK 146.5 that it hit yesterday.