Sales Up 5.4 Percent At STG
Scandinavian Tobacco Group (STG) released its 2024 annual report today, and the European giant reported a sales gain of 5.4 percent, while net profits were down by more than 20 percent.
Sales for the year were a record for the company: 9.2 billion Danish kroner ($1.3 billion), compared to 8.7 billion kroner in 2023. Net income, however, was down 20.5 percent, to 940 million kroner ($136 million), the second year in a row where net income has gone down. In 2023, the company earned 1.2 billion kroner, and back in 2022, the company had a net income of 1.5 billion kroner ($217 million).
Last year “was another challenging year with a volatile business environment,” wrote chief executive officer Niels Frederiksen and chairman Henrik Brandt in their welcome letter. “The global market for handmade cigars remains dominated by U.S. consumption.”
STG is one of the world’s biggest cigar companies, with a mix of product lines. Handmade cigars accounted for 36 percent of 2024 revenues, with growth of 2 percent. STG has a host of handmade brands that include Macanudo, CAO and the non-Cuban versions of Cohiba, Partagas, La Gloria Cubana, Punch and Hoyo de Monterrey.
Its machine-made cigar and smoking tobacco segment (48 percent of 2024 sales, up 3.2 percent compared to 2023) includes Henri Wintermans and Panter, and such pipe tobacco blends as Captain Black and Borkum Riff.
The company has some 10,000 worldwide employees, and is headquartered in Søborg, Denmark.
