Scandinavian Tobacco Group Strong After Merger

A strong 2011 for Scandinavian Tobacco Group A/S after merger

26 April 2012

Scandinavian Tobacco Group A/S (STG) had a strong first full financial year following the merger in 2010 with parts of Swedish Match. The Group realised net sales of DKK 5,472 million and an EBITDA of DKK 1,174 million and has during the year strengthened its position as the world’s leading manufacturer of cigars and pipe tobacco.

2011 was a good year for Scandinavian Tobacco Group A/S (STG). The Group delivered net sales of DKK 5,472 million, an EBITDA of DKK 1,174 million and a profit before tax of DKK 547 million and after tax of DKK 347 million. The profit includes one-off items of DKK 98 million related to restructuring following the merger in 2010 with the cigar and pipe tobacco business of Swedish Match AB.

”The first full financial year after the merger has been busy for STG. The new and larger global organisation is up and running. Also, we have taken steps to strengthen the portfolio of strong brands, and we are streamlining our supply chain and also here realising the synergies from the merger. During the year, we also acquired the US company Lane, Limited. We came out of 2011 with a result that we are proud of and which confirms that the merger has succeeded in creating and strengthening a company that is world leading within both cigars and pipe tobacco,” says Anders Colding Friis, CEO.

In general, the global market for cigars has experienced a minor decline over the past year, but STG has gained market shares in most markets and has only experienced a small decline in volume. Thus, STG has strengthened its position in the global market during 2011. The worldwide pipe tobacco market is declining, but despite this tendency STG has experienced a growth rate of 10% in 2011. The volume sold within fine-cut tobacco increased by 2%.

An improved EBITDA is expected for 2012 compared to 2011. STG will continue to focus on growth through increased market shares, product development and new markets.

Jørgen Tandrup        Anders Colding Friis
Chairman                  CEO
For further information, please contact:

Scandinavian Tobacco Group A/S
Anders Colding Friis, CEO, (+45) 3955 6200

For more information on Scandinavian Tobacco Group A/S, including the annual report, please refer to www.st-group.com.

Pipe tobacco brands of Scandinavian Tobacco Group:

  • Benson & Hedges
  • Black Cavendish
  • Blanke Baai
  • Blue Ridge
  • Borkum Riff
  • Bright & Dark
  • Burrus
  • Burlingtons Blue
  • Caledonian
  • Capstan
  • Captain Black
  • Caravelle
  • Charatan
  • Clan
  • Colts
  • Craven
  • Danish Mixture
  • Danish Truffles
  • Dannemann
  • Danske
  • Danske Club
  • Erinmore
  • Escudo
  • Everton
  • Flying Dutchman
  • Fraser
  • Friesche Heerenbaai
  • Garibaldi
  • Gold Block
  • Half & Half
  • Grev Hamilton
  • Highland Sliced Flake
  • Holland House
  • Indian Summer
  • Jensen Favorit
  • Jock Scott
  • Kentucky Bird
  • Lincoln
  • Maltan
  • Mayflower
  • Mellow Breeze
  • Mick McQuaid
  • My Own Blend
  • Nappa Valley
  • Neptune
  • New Ripples
  • Orlik
  • Park Lane
  • Parsons Pleasure
  • Perle
  • Peter Stokkebye
  • Pipe House
  • Poniatowski
  • Porter House
  • Portorico
  • Premier Cru
  • Primrose
  • Punchbowle
  • Richmond
  • Rode Ster
  • Rose & Crown Flake
  • Sail
  • Schippers
  • Shamrock
  • Singleton
  • Skandinavik
  • St. Bruno
  • Stanwell
  • Sweet Dublin
  • Three NunsTroost
  • Van Dyck
  • Velvan
  • Vier Heeren Baai
  • Voortrekker
  • Virginia Special
  • Warrior Plug
  • Wattson
  • Westminster
  • W.Ø. Larsen
  • Yachtsman
  • Zephyr
  • Ålsbo

Background

Scandinavian Tobacco Group (STG) was established as a new company in 2010 following a merger between the tobacco activities in Scandinavian Tobacco Group A/S (former Skandinavisk Tobaks-kompagni) and the pipe tobacco business and the major part of the cigar business of Swedish Match AB. STG is the world’s largest manufacturer of cigars and second largest in handmade cigars. The company is also a world leader in pipe tobacco and holds a strong position within fine-cut tobacco in Scandinavia and the US. The Group is headquartered in Søborg, Denmark, and has 9,500 employees all over the world. The Group has production facilities in eight countries and sales companies in 16 countries, and STG products are sold in more than 100 countries.
STG’s leading cigar brands include Café Crème, La Paz, Henri Wintermans, Colts, Mercator, Macanudo, CAO, Punch (USA), Partagas (USA) and Cohiba (USA). The leading pipe tobacco brands are Erinmore, Borkum Riff, Colts, Captain Black and Clan, while the most important roll-your-own brands include Colts, Salsa, Bugler, Tiedemanns and Escort.
The Danish company Skandinavisk Holding A/S holds 51% of the shares in STG and the remaining 49% are held by Swedish Match AB. The Danish foundations, Augustinus Fonden (65%) and Det Obelske Familiefond (35%), own Skandinavisk Holding. Swedish Match AB is listed on NASDAQ OMX in Stockholm.






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