Group Annual report 2010
Group annual report 2010 announcement
The new STG was established on 1 October 2010 by contribution of activities from the former Scandinavian Tobacco Group A/S and Swedish Match AB. The annual report includes the consolidated activities of the new Group from the date of establishment 1 October 2010 to 31 December 2010.
Financial highlights for 2010
- The revenue for the period 1 October – 31 December 2010 amounted to DKK 1,355m and total costs of goods sold amounted to DKK 779m. The total gross profit amounted to DKK 576m, representing a gross profit margin of 43%.
- The Group has been subject to significant restructuring in the first 3 months following the establishment, which had a material impact on the financial performance. The restructuring and integration cost, which has a one-off nature with impact on the Income Statement for the period, represent a total amount of DKK 279m.
- The reported EBITDA for the Group amounted to a loss of DKK 46m, and the EBITDA excluding one-off cost amounted to a profit of DKK 233m.
- The total net loss for the Group for the period amounted to DKK 125m.
Outlook for 2011
2011 will still be impacted by restructuring and integration costs following the merger. However, management expectation for 2011 is an operating EBITDA that is somewhat higher than the normalized EBITDA for 2010 excluding one-off costs. This will however depend on the timing of realized synergies.
The financial performance of the Group is very much dependent on the volumes sold. Sales are under pressure due to decreasing total market volumes in many of the countries where STG is operating. However, STG will continue to focus on increasing market shares and thereby expects to keep the revenue and the earnings of the Group at the current level.
For further information, please refer to the report.