Company Announcement
No.40/2016
31 AUGUST 2016
   
H1  

1 january-30 june 2016
   
   


Stable half year performance
impacted by new regulations

HIGHLIGHTS FOR 1 JANUARY-30 JUNE 2016

  • Reported net sales of DKK 3,199 million (DKK 3,225 million) - organic growth was 0.1%
  • Reported EBITDA of DKK 632 million (DKK 634 million) - organic growth was 0.1%
  • Net profit of DKK 346 million (DKK 354 million)
  • Cash flow from operating activities was DKK 304 million (DKK 429 million)
  • Cost optimisation and efficiency programme progressing in accordance with plans
  • Guidance for 2016 unchanged: Organic growth in net sales of 1-3% and organic growth in EBITDA of 3-5%. Total capital expenditures around DKK 250 million

Highlights for the second quarter of 2016

  • Reported net sales of DKK 1,699 million (DKK 1,748 million) - organic growth was -1.5%
  • Reported EBITDA of DKK 366 million (DKK 373 million) - organic growth was -2.7%
  • Net profit of DKK 208 million (DKK 206 million)
  • Cash flow from operating activities was DKK 452 million (DKK 408 million)

Statement by CEO Niels Frederiksen:
"First half of 2016 showed stable overall performance. Our handmade cigar business in the US continued to deliver strong growth based on market share gains. In machine-made cigars our performance was impacted by short-term fluctuations from new legislation in the EU. We continue to deliver on our cost optimisation and efficiency programme, where we see a positive impact on the margin in our machine-made cigar business.

Our second quarter, in particular, was impacted by EU's Tobacco Products Directive. The late adoption of the directive into national legislation has created short-term fluctuations in the markets and in our production. Noise in the markets is foreseen to continue in the third quarter, but net sales for the second half year are expected to show improved growth rates driven by price increases and a normalisation of the current fluctuations and stock movements in TPD related markets."

For media enquiries:
Kaspar Bach Habersaat
Director of Group Communications
+45 7220 7152 or kaspar.bach@st-group.com		 For investor enquiries:
Torben Sand
Head of Investor Relations
+45 7220 7126 or torben.sand@st-group.com
Q2 2016 Interim Report


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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