Core Insights - Scandinavian Tobacco Group reported a full-year net sales decrease of 1.8% to DKK 9.0 billion for 2025, with a negative organic growth of 3.1% [1][8] - The company proposed a DKK 4.50 dividend per share, representing a payout ratio of 42% [1] - The EBITDA margin before special items was 19.8%, and adjusted EPS was DKK 10.8 [1][13] Financial Performance - In Q4 2025, net sales declined by 4.6% to DKK 2.3 billion, with a negative organic growth of 0.5% [3][8] - The EBITDA margin before special items for Q4 was 19.5%, down from 24.3% in the same quarter last year [3][8] - Free cash flow before acquisitions for Q4 was DKK 0.1 billion, significantly lower than the previous year's DKK 604 million [3][8] Operational Challenges - Delays in the collection of receivables due to the new ERP implementation in Europe resulted in free cash flow being more than DKK 200 million lower than expected [2] - Exchange rate fluctuations negatively impacted reported net sales by over 4% during Q4 [4] Product Performance - Organic growth was positive in the Handmade Cigars and Next Generation Products categories, while it remained unchanged in Machine-Rolled Cigars & Smoking Tobacco and was negative in the Other category [4] Future Outlook - For 2026, the company expects reported net sales growth at constant FX to range from -2% to 2% and EBIT margin before special items to be between 13.0% and 14.5% [9] - Free cash flow before acquisitions is anticipated to be between DKK 950 million and DKK 1,200 million, with adjusted EPS expected to be between DKK 9 and 11 [9][10]