Tobacco company Scandinavian Tobacco reports increased revenue and higher operating profit in the third quarter compared with the same period a year earlier. The company is also raising its forecasts for the operating margin and adjusted earnings per share for the full year.
Revenue rose 3.3 percent to 2,434 million Danish kroner (2,357). Organic sales growth amounted to 2.1 percent (0.3).
EBITDA before items affecting comparability amounted to 610 million Danish kroner (519), with an EBITDA margin of 25.1 percent (22.0).
Operating profit before items affecting comparability was 484 million Danish kroner (407), with an operating margin of 19.9 percent (17.3).
Operating profit amounted to 441 million Danish kroner (366).
Profit before tax was 382 million Danish kroner (295).
Net profit amounted to 294 million Danish kroner (227). Earnings per share were 3.70 Danish kroner (2.90). Adjusted earnings per share amounted to 4.20 Danish kroner (3.40).
Free cash flow before acquisitions increased to 440 million Danish kroner (173).
“The third quarter was positively affected by the timing of certain deliveries, which will reverse in the fourth quarter, but I am pleased with the continued growth in handmade cigars, the underlying margin stabilization and the strong cash flow generation,” comments CEO Niels Frederiksen.
The company raises its forecast for the operating margin before items affecting comparability to 14.0–15.5 percent from the previous 13.0–14.5 percent. The forecast for adjusted earnings per share is raised to 9.50–11.50 Danish kroner from 9.00–11.00.
At the same time, the forecast for revenue growth in constant currency is narrowed to -2 to 0 percent from the previous -2 to 2 percent. The forecast for free cash flow before acquisitions is reiterated at 1.2–1.4 billion Danish kroner.
The company states that the forecast changes reflect, among other things, higher refunds of customs duties and fees. The strong third quarter was also positively affected by timing shifts in deliveries, which are expected to have the opposite effect in the fourth quarter.
Key figures, MDKKQ3 2026Q3 2025ChangeRevenue2,4342,357+3.3%EBITDA before items affecting comparability610519+17.5%EBITDA margin before items affecting comparability25.1%22.0%+3.1 ppOperating profit before items affecting comparability484407+18.9%Operating margin before items affecting comparability19.9%17.3%+2.6 ppOperating profit441366+20.5%Profit before tax382295+29.5%Net profit294227+29.5%Adjusted earnings per share, DKK4.203.40+23.5%Earnings per share, DKK3.702.90+27.6%
