Q2 2024 Scandinavian Tobacco Group A/S Earnings Call Transcript
Key Points
- Reported net sales increased by 6.3% to DKK2.4 billion.
- EBITDA margin improved to 24.5% compared to 23.1% in the same quarter last year.
- Free cash flow before acquisitions was DKK177 million, up from DKK159 million last year.
- Next-generation products and handmade cigars delivered strong net sales growth.
- The acquisition of Mac Baren is expected to add 8% to group net sales and deliver meaningful synergies.
- EBITDA margin for the first half of the year was lower than last year.
- Machine-rolled cigars saw a decline in organic net sales by 2%.
- The market for handmade cigars is estimated to contract by a mid-single-digit percentage.
- The distribution of third-party next-generation products has been paused, impacting future sales.
- Net profit for the quarter decreased to DKK297 million from DKK304 million last year due to higher special costs and net financial expenses.
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Welcome all to Scandinavian Tobacco Group's webcast for the second quarter results 2024. As said, my name is Torben Sand, and I'm heading the Investor Relations and Group Communications. And I am today joined by our CEO, Niels Frederiksen; and our CFO, Marianne Rorslev Bock as well as our newly appointed Chief Commercial Officer, Regis Broersma.
Please turn to Slide 3 for the agenda for today's call. Today's presentation will cover the following agenda points. Niels will start by giving you an overview of the key highlights of the second quarter as well as an update on our strategy and other key events, including the acquisition of Mac Baren. Then Regis will take over and give you an update on developments in our core markets as well as insights to recent trends and developments in our product categories, which are handmade cigars, machine-rolled cigars and smoking tobacco as well as next-generation products.
Marianne will follow with an overview of the financial performance and our
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