In a meeting today, the Supervisory Board and the Annual General Meeting of Scandinavian Tobacco Group (STG) approved the accounts for STG and the STG Group. The accounts cover six months as the Group has changed its financial year from 1 July - 30 June to the calendar year.
The STG Group achieved a satisfactory result for the period of DKK 17,423 million before tax compared to DKK 2,370 million in 2007/08. STG’s share of the result after tax amounted to DKK 17,427 million against DKK 1,620 million in 2007/08. For the accounting period, the Group’s net turnover totalled DKK 12.9 billion compared to DKK 27.4 billion for the financial year 2007/08.
The result for the period is significantly affected by non-recurring income related to STG’s sale as at 1 July 2008 of its cigarette activities and certain roll you own and snus activities to British American Tobacco (BAT) thus acquiring the companies House of Prince, J.L. Tiedemanns, and Fiedler & Lundgren at a price of approx. DKK 20 billion.
Simultaneously with the sale of the above companies, STG made an agreement with Assens Tobaksfabrik A/S regarding acquisition of its 50% share of Orlik Tobacco Company A/S so that the latter company is now a 100% STG owned subsidiary. Finally, with effect from 1 July 2008, STG’s parent company, Skandinavisk Holding A/S, acquired BAT’s 32.35% shareholding in STG and, subsequently, the shares of the minority shareholders have been redeemed. As at April 2009, SH has thus obtained 100% ownership of the new STG Group.
The STG Group has a vision of expanding its position as one of the largest manufacturers on the global cigar market and the position as No. 1 within pipe tobacco as well as of obtaining a significant position for the Group’s roll you own products.
The STG Group continues to expand its activities within the global cigar industry and acquired as at 1 January 2009 two cigar factories in Honduras and Nicaragua, respectively. The factories make annually approx. 17 million hand-rolled premium long filler cigars sold primarily under the Group brand CAO to the US market.
STG’s ownership of Dagrofa and Tivoli remains unchanged.
The STG Group’s ordinary operating result for 2009 is expected to be above the level for the calendar year 2008 adjusted for the divested activities.
ABOUT SCANDINAVIAN TOBACCO GROUP
- a world leading manufacturer of cigars and traditional pipe tobacco
- approx. 8,200 employees in the Dominican Republic, Honduras, Nicaragua, Indonesia, Europe, New Zealand, Australia, Canada and the US
The Group’s brand portfolio contains more than 200 international, regional and local tobacco brands, including the cigar brands Café Crème, La Paz, Henri Wintermans, Macanudo, CAO, Partagas (US) and Cohiba (US). Pipe tobacco brands include Captain Black, Erinmore, Borkum Riff and W.Ø. Larsen, while leading fine-cut tobacco brands include Bugler, Break, Escort, Bali Shag and Tiedemanns.
The Group is ultimately owned by two Danish foundations (51%) – the Augustinus Foundation and Det Obelske Familiefond – and by Swedish Match (49%). Both Danish foundations have been active in the tobacco industry for more than 250 years. Swedish Match is a publicly owned company listed on the Stockholm Stock Exchange.
Read more: www.st-group.com.
Scandinavian Tobacco Group A/S
CVR 31 08 01 85