Cigar Industry

Disappointing Quarter For General Cigar Parent STG

Aug 22, 2022 | By David Savona
Disappointing Quarter For General Cigar Parent STG
Photo/General Cigar Co.

Scandinavian Tobacco Group, the European company known as STG, announced that the company’s second quarter profits and organic sales were down, results that the company called “disappointing and below our expectation.” STG is the parent company of Macanudo maker General Cigar Co., as well as Cigars International.

While the company won’t release its complete second-quarter report until Wednesday, this weekend it released highlights. Net sales for the quarter were DKK 2.3 billion ($309 million), which the company said reflects a decrease of 1.8 percent in “organic net sales.” Profits performed worse, as EBITA (earnings before interest, taxes and amortization) dropped 16.8 percent to DKK 544 million ($732,000). 

In addition to handmade cigars, STG sells machine-made cigars, snus, and pipe tobacco. The company pointed blame at supply chain issues, and said its handmade cigar shipments for 2022 were expected to decline. Contrary to many other companies in the handmade cigar business, the company expressed pessimism for the current market. “The handmade cigar consumers in U.S. have become more cautious on the back of macroeconomic developments,” STG said in its release. “Consequently, for 2022 handmade cigar volumes are now expected to decline.” 

The company went on to say it expected flat revenues, instead of the previously predicted increase, for 2022. 

Read Next: Macanudo Inspirado Jamao Showcases Experimental Wrapper

Scandinavian Tobacco Group General Cigar Co.

More in Cigar Industry

See all
Hurricane Ian Disrupts Florida, Epicenter Of U.S. Cigar Industry

Hurricane Ian Disrupts Florida, Epicenter Of U.S. Cigar Industry

 Hurricane Ian brought destructive winds and floodwaters from both sea and air across the state, …

Sep 30, 2022
Fire In The Free Zone: William Ventura Cigar Factory In D.R. Burns Down

Fire In The Free Zone: William Ventura Cigar Factory In D.R. Burns Down

Sirens blared in a Santiago free zone early this morning as firefighters fought a blaze that consumed …

Sep 26, 2022
Hurricane Strikes Dominican Republic, Damage To Cigar Industry Appears Minimal

Hurricane Strikes Dominican Republic, Damage To Cigar Industry Appears Minimal

Hurricane Fiona cut across the Dominican Republic yesterday, and while parts of the country are …

Sep 20, 2022
Ace Prime Gets New Name

Ace Prime Gets New Name

Ace Prime Cigars has changed its name, and is now known as Luciano Cigars.

Sep 19, 2022
Crowned Heads And Ace Prime Part Ways

Crowned Heads And Ace Prime Part Ways

Crowned Heads, the Nashville, Tennessee boutique cigar company, will no longer be distributing …

Sep 16, 2022
J.C. Newman Unveils 116-Year-Old Cuesta-Rey Cigars

J.C. Newman Unveils 116-Year-Old Cuesta-Rey Cigars

J.C. Newman recently acquired a box of 100 perfectly pristine Cuesta-Rey cigars from 1906. 

Sep 16, 2022