Scandinavian Tobacco Group A/S: Annual Report 2016
March 16 2017 - 03:00AM
COMPANY
ANNOUNCEMENT
No. 6/2017
Copenhagen, 16 March 2017
Annual Report 2016
Improved EBITDA and Strong Cash
Flows
on the Base of Flat Net Sales
Scandinavian Tobacco Group A/S - a world-leading
manufacturer of cigars and traditional pipe tobacco - announces its
result for the fourth quarter and full year 2016.
Organic growth in adjusted net sales and EBITDA delivered in
accordance with our guidance published on 3 November 2016. The
Board of Directors proposes an ordinary dividend of DKK 5.50 per
share, an increase of 10%.
Highlights 2016:
-
Net sales increased by 0.2% to DKK 6,746 million
- organic growth of 0.4%
-
Reported EBITDA increased by 2.6% to DKK 1,279
million - organic growth
in EBITDA of 4.0%
-
Profitability improvement leading to an adjusted
EBITDA margin of 21.4% (20.5%)
-
Net profit increased by 2.1% to DKK 681
million
-
Free cash flow increased by 7.8% to DKK 1,139
million
-
The Board of Directors will continue to evaluate
distribution of possible excess cash
in relation to the third quarter announcement in November
2017.
CEO Niels Frederiksen comments:
"2016 was a year of solid performance. We improved our EBITDA and
had a strong free cash flow on the base of flat net sales. The
performance reflects our plans and efforts. We continue to grow our
handmade cigars business and see further opportunities to
outperform total markets in Americas that now represents close to
half of our business."
"In addition, we have accelerated and extended our
cost optimisation and efficiency programmes to a total of approx.
DKK 200 million. Our working capital reduction programme continued
to deliver ahead of plan and we now expect to reach the DKK 500
million target reduction by the end of this year, one year ahead of
plan."
"During the first months of 2017, our online and
catalogue retail business in the US implemented new IT
infrastructure and warehouse management systems. The implementation
has caused significant interruptions of a temporary nature in our
sales, invoicing and customer service that will affect our
full-year 2017 performance. As a consequence, we expect growth in
EBITDA to be somewhat lower than the previous year. We are
confident, though, that the IT implementation is close to
completion and we expect to deliver 1-3% organic EBITDA growth in
2017."
Guidance for 2017
For 2017, we expect flat organic net sales and an organic growth of
1-3% in EBITDA. During the first quarter, we expect organic growth
in net sales and EBITDA to be negative.
The annual report for 2016
is available for download on: investor.st-group.com.
Conference Call and
Webcast
A conference call and webcast will be held on 16
March 2017 at 10:00 AM CET.
Presentation materials will be available online
approximately one hour before the webcast on
investor.st-group.com.
Dial-in details:
Denmark: +45 32 71
16 60
The
UK: +44 20
3427 1909
The US:
+1 646 254
3362
Passcode:
4091763
Webcast:
http://edge.media-server.com/m/p/f9fxyhqy
For further information, please contact:
For media enquiries:
Kaspar Bach Habersaat, Director of Group Communications, phone: +45
7220 7152
or kaspar.bach@st-group.com.
For investor enquiries:
Torben Sand, Head of Investor Relations, phone: +45 7220 7126 or
torben.sand@st-group.com.
Company Announcement no 6
16.3.2017
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Scandinavian Tobacco Group A/S via
Globenewswire
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