Scandinavian Tobacco Group: Elusive

“Acquisitions are an important part of our vision to become a larger and more profitable company and, at the same time, keep financial discipline to make sure we can also deliver long-term value for our shareholders. The acquisition of Mac Baren meets all these criteria; it improves our positions within smoking tobacco and nicotine pouches and will, when fully integrated, deliver significant value to our shareholders.” - Niels Frederiksen, STG CEO, Q3’24 Remarks

In Q2’24, Scandinavian Tobacco Group’s aggressive posture provided a purpose for pause. Now, Q3 shows the lines have been moved. Some pressures have been alleviated; others persist; a small part of the business has been lost for good. The newest acquisition swings the group’s story back to where we were at the start of the year. A continuance of elevated special costs tugs on the question of what ‘normalized’ earnings genuinely look like and makes pinpointing when they will be reached more elusive.