Overview
Denmark tobacco group's Q4 net sales fell 4.6% amid negative organic growth
Q4 EBITDA margin dropped to 19.5% from 24.3% last year
Full-year net sales decreased 1.8% to DKK 9.0 bln
Outlook
STG expects 2026 net sales growth at constant FX from -2% to 2%
Company anticipates 2026 EBIT margin before special items of 13.0% - 14.5%
STG projects 2026 free cash flow before acquisitions of DKK 950 - 1,200 mln
Result Drivers
EXCHANGE RATE IMPACT - Exchange rate fluctuations negatively impacted reported net sales by over 4% in Q4
PRODUCT MIX AND PROMOTIONS - Decline in EBITDA margin driven by product and market mix changes and increased promotional spending in North America
Company press release: ID:nGNEGvlJm
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Adjusted EPS
DKK 2.6
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the tobacco peer group is "buy."
Wall Street's median 12-month price target for Scandinavian Tobacco Group A/S is DKK91.25, about 8.7% below its March 3 closing price of DKK100.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
