Scandinavian Tobacco Group A/S: Interim Report First Quarter 2026

Company Announcement No. 6, 20 May 2026

Interim Report First Quarter 2026: Steady progress in a seasonally low quarter

Niels Frederiksen, Chief Executive Officer: “The first quarter marks the beginning of our new five-year strategy, Focus2030. Our priority this year is to lay the foundation for long-term success by stabilising our earnings in machine-rolled cigars and smoking tobacco, revitalising our strong handmade cigar business and continuing to expand our promising nicotine pouch business.  I am pleased with the progress we have made in the early months of the year as we have executed on our initial plans, and I am confident we will achieve our financial ambitions as well as delivering attractive, sustainable shareholder value during the next five years”.

Net sales stabilising as Focus2030 initiatives implemented

• Reported net sales of DKK 1.9 billion includes a -5.2% impact from exchange rate changes
• Net sales growth at constant currencies of -0.6% impacted by timing of deliveries
• Power brands lead market share stabilisation in machine-rolled cigars across Europe
• XQS continues to strengthen in growing market. Market share in Sweden above 13%
• Handmade cigars deliver organic net sales growth of 8%

EBIT margin in line with last year

• EBITDA margin before special items was 17.2% (Q1 2025: 16.1%)
• EBIT margin before special items at 10.4% (Q1 2025: 10.4%) negatively impacted by 0.9% from change in amortization of trademarks

Traditionally low first quarter cash flow positively impacted by recovery of receivables

• Free cash flow before acquisitions was DKK 158 million (Q1 2025: DKK 156 million). The cash flow last year was unusually strong as result of a positive impact from working capital.
• The cash flow benefitted as expected from the recovery of receivables. Typically, the cash flow generation is the weakest during the first quarter.

Financial expectations for full-year 2026 maintained
For 2026, we expect total market trends to be similar to what we have seen over the past years for most of our product categories and with profit margins continuing to be impacted by changes in product and market mix and competitive pressures. Reported net sales growth at constant currencies is expected in the range from -2% to 2%, EBIT margin before special items in the range of 13.0%-14.5%, free cash flow before acquisitions in the range DKK 950-1,200 million and adjusted EPS in the range DKK 9-11. EBITDA before special items is expected to be more or less unchanged compared to last year.

Financial Summary

Reported data in DKK million
	Q1 2026	Q1 2025	Change
Net sales	1,859	1,974	-6%
EBITDA before special items	320	317	1%
EBIT before special items	193	206	-6%
EBIT margin before special items	10.4%	10.4%
Adjusted earnings per share (DKK)	1.1	1.5	-27%
Free cash flow before acquisitions	158	156	1%
Return on invested capital (ROIC)	7.8%	8.8%
NIBD / EBITDA before special items	3.0x	2.5x

Scandinavian Tobacco Group will present its First Quarter 2026 results at a conference call on 21 May 2026 at 10.00 CEST. Dial-in information and the presentation deck will be available at st-group.com.

Contact
Torben Sand, Director of IR & Communications, phone +45 5084 7222, torben.sand@st-group.com.
Eliza Dabbagh, IR & Communications, phone +45 2420 8812, eliza.michael@st-group.com

Attachment

• Interim report Q1 2026