{"url":"https://newsforagent.com/news/2026-11-11/scandinavian-tobacco-group-raises-2026-guidance","markdown_url":"https://newsforagent.com/news/2026-11-11/scandinavian-tobacco-group-raises-2026-guidance.md","title":"Scandinavian Tobacco Group Raises 2026 Guidance on Refunds","headline":"Scandinavian Tobacco Group Lifts Full-Year EBIT Margin Guidance to 14.0-15.5% on Higher Refunds","description":"Scandinavian Tobacco Group raised its 2026 EBIT margin guidance to 14.0-15.5% after higher tariff and duty refunds, with Q3 net sales of DKK 2,434 million.","section":"Earnings & Results","published_at":"2026-11-11T16:36:11+00:00","modified_at":"2026-11-11T16:36:11+00:00","author":"News Desk","key_takeaways":["Scandinavian Tobacco Group raised its full-year 2026 EBIT margin before special items guidance to 14.0-15.5% from 13.0-14.5%.","Third-quarter net sales were DKK 2,434 million, up 3% from DKK 2,357 million a year earlier.","Free cash flow before acquisitions for the first nine months was DKK 862 million, against DKK 448 million in the same period of 2025."],"companies":[{"name":"Scandinavian Tobacco Group A/S","is_primary":true,"profile_url":"https://akta.pro/company-profiles/0003qbd/scandinavian-tobacco-group-a-s","website":"https://www.st-group.com"}],"source":{"publisher":"GlobeNewswire","title":"Scandinavian Tobacco Group A/S: Interim Report 1 January–30 September 2026: Full year expectations raised reflecting year-to-date performance and higher refunds","url":"https://www.globenewswire.com/news-release/2026/11/11/3400986/0/en/scandinavian-tobacco-group-a-s-interim-report-1-january-30-september-2026-full-year-expectations-raised-reflecting-year-to-date-performance-and-higher-refunds.html"},"other_sources":[],"tags":["Earnings & Results","Scandinavian Tobacco Group A/S"],"body_markdown":"Scandinavian Tobacco Group A/S raised its full-year 2026 EBIT margin before special items guidance to 14.0-15.5% from 13.0-14.5%, citing year-to-date performance and higher tariff and duty refunds, [GlobeNewswire](https://www.globenewswire.com/news-release/2026/11/11/3400986/0/en/scandinavian-tobacco-group-a-s-interim-report-1-january-30-september-2026-full-year-expectations-raised-reflecting-year-to-date-performance-and-higher-refunds.html) reported on November 11, 2026. The Danish cigar and tobacco maker reported third-quarter net sales of DKK 2,434 million.\n\n## Scandinavian Tobacco Group's Third-Quarter Results\n\n[Scandinavian Tobacco Group A/S](https://akta.pro/company-profiles/0003qbd/scandinavian-tobacco-group-a-s) is a publicly listed Danish manufacturer and distributor of cigars, pipe tobacco, fine-cut tobacco and nicotine pouches, operating 12 factories and 14 sales offices across more than 100 countries, according to company records.\n\nThird-quarter net sales rose 3% to DKK 2,434 million from DKK 2,357 million a year earlier. EBIT before special items was DKK 484 million, up 19% from DKK 407 million, and the EBIT margin before special items was 19.9% against 17.3%. Free cash flow before acquisitions was DKK 440 million, compared with DKK 173 million.\n\nFor the first nine months, reported net sales were DKK 6.6 billion including a 2% negative impact from exchange rate effects, with net sales growth at constant currencies of 0.5%. Handmade Cigars delivered 4% organic net sales growth, while Machine-Rolled Cigars & Smoking Tobacco delivered flat organic net sales. The EBITDA margin before special items was 21.8%, including a 120 basis point impact from duty refunds.\n\nChief Executive Officer Niels Frederiksen said: \"The third quarter was another step in the right direction with respect to executing our Focus2030 strategy and stabilising our business.\" He added that the quarter was positively affected by timing of certain shipments that will reverse in the fourth quarter.\n\nThe company narrowed its reported net sales growth at constant currencies guidance to -2% to 0% from -2% to +2%, and raised adjusted EPS guidance to DKK 9.5-11.5 from DKK 9.0-11.0. Free cash flow before acquisitions guidance was unchanged at DKK 1.2-1.4 billion.\n\n## Refunds and Divestment Lift Financial Flexibility\n\nAccording to akta.pro [company records](https://akta.pro/company-data), Scandinavian Tobacco Group launched its Focus2030 five-year strategy in November 2025, setting financial ambitions of ROIC above 11% from 7.9% and free cash flow of DKK 1.2 billion by 2030, with North American handmade cigars as the primary investment focus. The company's full-year 2025 net sales declined 1.8% to DKK 9.0 billion, with organic growth of -3.1%.\n\nThe Group leverage ratio is expected at about 2 times by year-end compared with 2.7 times by end of Q3, following the completed divestment of the fine cut tobacco brands BREAK and Moro.\n\n## Japan Tobacco Deal and First-Half Results\n\nIn July 2026, Scandinavian Tobacco Group signed an asset purchase agreement to divest the fine-cut tobacco brands BREAK and Moro to Japan Tobacco Inc. for EUR 176 million, approximately DKK 1.3 billion pretax enterprise value, GlobeNewswire reported.\n\nIn August 2026, the company reported first-half 2026 net sales of DKK 4.2 billion, down 0.3% at constant currencies, with handmade cigars up 6% organically and EBITDA margin at 19.9%, Yahoo reported. Free cash flow before acquisitions was DKK 422 million.\n\n## Conference Call on November 12\n\nThe Group will present the results at a conference call on November 12, 2026 at 10.00 CET, with dial-in information and the presentation deck available at [st-group.com](https://www.st-group.com).\n","publisher":{"name":"News for Agent","url":"https://newsforagent.com"}}