Scandinavian Tobacco Group (STG), the global parent company to General Cigar, has reported its Q1 (January 1 – March 31) 2018 earnings. While the company reported negative growth in its machine-made category, it did report increased growth in the handmade cigars category.
Overall Highlights of the earnings included:
- Net Sales of 1,285 million DKK showing organic growth of 3.5%
- EBITDA (Earnings Before Interest Taxes Depreciation, and Amortization) of 196 million DKK for organic growth of 1.2%
- Net profit was 88 million DKK for an increase of 18% for the quarter.
- 6.8% increase in organic growth net sales for handmade cigars
- -1.0% decrease in organic growth for machine-made cigars
STG CEO Niels Frederiksen says: “We’re pleased to see continued improvement in our handmade cigars category as the category is returning to healthy growth rates. The first quarter is traditionally our smallest quarter and the machine-made cigars category was impacted by the new excise structures in France, but overall we are on track to deliver on our full year guidance.”
The company also gave an update on its acquisition of Thompson Cigar which became official in April. “We are proud to welcome our new colleagues in Florida into the STG family and have immediately started the integration of Thompson into the new combined business with our existing US online retailer Cigars International. I am excited about this transaction that will allow us to deliver an unmatched range of premium cigars at the highest level of service to the US consumers,” added Frederiksen.
The detailed earnings report can be found here.
