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.”

QuarterNet Sales (In Millions of DKK)EBIDTA Before Special Items (In Millions of DKK)Free Cash Flow (In Millions of DKK)
Q3 20232,300Not Announced622
Q2 20232,200Not Announced159
Q1 20231,963474(179)
Q4 20222,185563530
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

“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.

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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 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.