Scandinavian Tobacco Group A/S: Interim report for the period 1 January - 31 March 2016

Company Announcement
No. 21/2016

25 May 2016

Interim report for the period 1 January - 31 March 2016

Continued Strong Performance in US Handmade Cigars
- Optimisation and Efficiency Programme Progresses According to Plan

Underlying total performance in the first quarter in accordance with our expectations - full-year organic growth guidance maintained.

Highlights for the first quarter of 2016:

  • Reported net sales of DKK 1,499 million (DKK 1,477 million) - organic growth 1.9%
  • Reported EBITDA of DKK 266 million (DKK 260 million) - organic growth 4.1%
  • Profitability improvement leading to adjusted EBITDA margin of 18.6% (18.0%)
  • Cost optimisation and efficiency programme progressing in accordance with plans
  • Net profit of DKK 138 million (DKK 148 million)
  • Cash flow from operating activities was DKK -148 million (DKK 22 million)
  • Guidance for 2016 unchanged: Organic growth in net sales of 1-3% and organic growth in EBITDA of 3-5%. Capital expenditure around DKK 250 million.

Statement by CEO Niels Frederiksen:

"2016 has started well with continued strong performance in our US handmade cigar business and progress in our cost optimisation and efficiency programme is according to plan. We are pleased to deliver growth in net sales and EBITDA in line with our 2016 guidance and medium term outlook.

Deadline for the national implementation of the new EU Tobacco Products Directive (TPD) was 20 May 2016. We have prepared thoroughly and taken the opportunity to try to turn the new legislation into a competitive advantage for us. The implementation of the new rules in our business has been complicated by a late adoption of the national legislation in the EU member states. We believe that we have prepared well for the transition to the new regulation, but the impact of the new EU legislation on the market place remains to be seen."

For media enquiries:
Kaspar Bach Habersaat, Director of Group Communications, phone: +45 7220 7152

For investor enquiries:

Torben Sand, Head of Investor Relations, phone: +45 7220 7126 or
Company announcement 21-2016

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Source: Scandinavian Tobacco Group A/S via GlobeNewswire