Sales And Profits Rise At STG, One Of World’s Biggest Cigar Companies
Scandinavian Tobacco Group A/S, the parent company of General Cigar Co. and Cigars International, among others, reported an increase in sales and profits for 2022. In a report filed this morning, the company had a net sales increase of six percent, to 8.8 billion Danish Kroner ($1.2 billion), compared to 8.2 billion DKK ($1.1 billion) in 2021. Net profits also showed an increase, from 1.4 billion DKK ($198 million) to 1.5 billion DKK ($212 million). The company, which is headquartered in Denmark, makes four billion cigars a year (most of them by machine), sells to more than 100 countries and has 10,000 employees.
Despite the gain, the company showed some disappointment in its financials, as much of the growth was attributed to acquisitions, giving the company a 3.5 percent decline in organic net sales.
“In many regards, navigating in 2022 was a challenge, but we are very satisfied with the way in which our employees embraced these challenges, the uncertainties, and the volatile market conditions, and we salute each one of them globally,” the company wrote. “In August 2022, we had to lower our guidance for organic EBITDA growth as result of prolonged challenges in our European production.”
STG has been actively acquiring companies, most recently closing the $72.5 million acquisition of Alec Bradley. It previously acquired such smaller brands as Room 101 and Toraño, as well as European cigarmaker Royal Agio, and Thompson and Co., a major Internet and catalog cigar retailer.
The handmade cigar brands owned by STG include Macanudo and CAO, the non-Cuban versions of Cohiba, Punch, Hoyo de Monterrey, Partagas and La Gloria Cubana and a host of others.
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