Scandinavian Tobacco Group announces financial ambitions and new flexible shareholder return policy ahead of Capital Markets Day

Core Viewpoint - Scandinavian Tobacco Group is set to unveil its five-year strategy, Focus2030, on November 20, 2025, aiming to enhance shareholder value and operational efficiency [1][6]. Financial Ambitions - The financial ambitions include organic EBIT growth before special items, a return on invested capital (ROIC) of at least 11% by the end of 2030, and free cash flow before acquisitions of at least DKK 1.2 billion in 2030 [2][8]. - The company plans to achieve incremental earnings improvements and disciplined capital deployment to support these ambitions [2]. Shareholder Return Policy - The new shareholder return policy will feature a dividend payout ratio of 40-60% against adjusted earnings per share, supplemented by share buy-backs when the projected leverage ratio allows [2]. - Since its listing in 2016, the company has returned over DKK 9 billion to shareholders through dividends and share buy-backs, with a commitment to continue this trend [3]. Cost Efficiency Initiatives - As part of the Focus2030 strategy, the company aims to deliver approximately DKK 200 million in cost improvements, with full effect expected early in the strategy period [5]. Market Positioning - The strategy focuses on creating a sustainable and stable machine-rolled and smoking tobacco business primarily in Europe, a growing handmade cigar business in the US, and an expanding nicotine pouch business [7]. Annual Guidance - The Group will provide annual guidance for reported net sales growth in local currencies, EBIT before special items, free cash flow before acquisitions, and adjusted earnings per share [4].