Scandinavian Tobacco Group heads for worst day ever after guidance cut

Scandinavian Tobacco A/S

22/08/2022 10:08

** Shares in Scandinavian Tobacco Group  STOGR.CO  plunge
19%, on track for their worst day ever, as the Danish cigars and
pipe tobacco maker cuts 2022 outlook after disappointing Q2
performance  urn:newsml:reuters.com:*:nASM000O49
    ** The group on Sunday reported Q2 EBITDA before special
items of DKK 544 mln ($73.14 mln) vs DKK 606 mln year ago,
saying the performance was below its own expectations
    ** It now sees 2022 organic EBITDA growth of -4% to 0% vs 0%
to +6% previously
    ** It cites a lack of improvement in the productivity of its
supply chain, saying the delay will negatively impact FY costs
    ** The company's production backlog, which it says is not
being reduced as planned, was almost DKK 150 mln by end-July
    ** It expects handmade cigar volumes to decline this year by
more than the long-term trend of about -2%; cuts the group's
sales growth outlook to flat to reflect this vs earlier forecast
of positive growth
    ** The group will release full Q2 results on Aug. 24
    
($ = 7.43818 Danish Crowns)

 (Reporting by Louise Breusch Rasmussen)
 ((Louisebreusch.rasmussen@thomsonreuters.com))