Scandinavian Tobacco Group (STG) released its 2025 annual report outlining financial performance, category results, and operational developments across its global cigar and tobacco business.
The Denmark-based company is one of the largest cigar producers in the world and operates a portfolio that includes General Cigar Company, Forged Cigar Company, and direct-to-consumer retail platforms such as Cigars International.
Financial Results
STG reported net sales of approximately DKK 9.2 billion (about $1.3 billion) in 2025, representing a 5.4 percent increase compared to the previous year. Organic net sales growth was 0.4 percent. Earnings before interest, taxes, depreciation, and amortization (EBITDA) before special items totaled DKK 2.1 billion, resulting in an EBITDA margin of 22.6 percent. Net profit for the year was DKK 940 million. Free cash flow before acquisitions totaled DKK 0.9 billion. The company’s board proposed an annual dividend of DKK 8.50 per share.
Handmade cigars represented approximately 36 percent of STG’s total revenue. Machine-made cigars and smoking tobacco products accounted for approximately 48 percent of total revenue, making them the company’s largest category.
International sales of handmade cigars recorded double-digit net sales growth and now represent around 10 percent of total group revenue.
Operational Developments
During 2025, STG continued investing in areas identified as key growth drivers. These include the expansion of retail superstores, increased international distribution of handmade cigars, and continued development of next-generation nicotine products.
The company also continued integrating recent acquisitions and strengthening supply chain and distribution infrastructure.
Industry Context
According to the report, the global cigar market continues to benefit from consumer interest in premium products and growing international demand for handmade cigars.
STG noted that premiumization and international expansion remain important dynamics shaping the cigar industry.
You can review STG’s entire 2025 Financial Report by clicking here.