Scandinavian Tobacco Group (STG) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales were DKK 2,357 million, down 3% year-over-year, with organic net sales up 0.3% driven by handmade cigars and nicotine pouches, despite negative currency effects.

• EBITDA margin recovered to 22.0% in Q3 2025, improving sequentially but down from 23.4% last year.

• Free cash flow before acquisitions was DKK 173 million in Q3 and is on track to reach DKK 800–1,000 million for the full year.

• Adjusted EPS for Q3 2025 was DKK 3.4, down from DKK 4.1 in Q3 2024; net profit was DKK 227 million.

• Integration of Mac Baren is progressing as planned, with synergies expected to reach DKK 150 million by 2027.

Financial highlights

• Q3 2025 reported net sales: DKK 2,357 million (down 3%); organic net sales increased by 0.3%.

• Q3 2025 EBITDA before special items: DKK 519 million, margin at 22.0%.

• Q3 2025 net profit: DKK 227 million; adjusted EPS: DKK 3.4.

• Free cash flow before acquisitions: DKK 173 million in Q3, DKK 448 million for nine months.

• Gross margin in Q3 2025: 44.6%, slightly lower than 46.3% in Q3 2024.

Outlook and guidance

• Full-year 2025 net sales guidance narrowed to DKK 9.1–9.2 billion.

• EBITDA margin before special items guided at 19.5–20.5%.

• Free cash flow before acquisitions expected at DKK 800 million–1 billion.

• Adjusted EPS guidance narrowed to DKK 10–12.

• Leverage ratio expected to decline in Q4 but remain above the 2.5x target.