Strong EBITDA and cash flow - accelerated efficiency programme
HIGHLIGHTS FOR 1 JANUARY-30 SEPTEMBER 2016
The first nine months showed stable overall performance with improving underlying EBITDA margin and continued strong cash flow. Focus on implementing new regulations in EU and the US as well as delivering on our optimisation and efficiency programme.
Highlights for the THIRD quarter of 2016
EBITDA and cash flow improved significantly in a quarter where net sales remained flat. Efficiency and cost optimisation programme was accelerated and today we announce new initiatives with annual savings of DKK 60-65 million.
fINANCIAL GUIDANCE 2016
Statement by CEO Niels Frederiksen:
"I am pleased that we delivered significant improvements in EBITDA and a continued strong cash flow in the quarter. This is driven by the impact from our optimisation and efficiency programme, which progresses well. Our cost programme has been accelerated by one year, and today we announce new initiatives to improve our operating model. We will optimise our sales and support functions and merge our supply chain for machine-made cigars, pipe tobacco and fine-cut tobacco into one.
Our nine-month net sales performance has been stable. Our US handmade cigars business continues to grow and outperform the market. Net sales have been impacted across all categories from fluctuations following new FDA regulations in the US and the late adoption of new EU regulations in to national legislation."
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