Core Insights - Scandinavian Tobacco Group A/S reported third quarter 2025 results with net sales of DKK 2.4 billion, showing organic net sales in line with the previous year [1][6] - The company narrowed its full-year expectations due to increased visibility and the impact of USD developments [6][7] Financial Performance - Reported net sales decreased by 3.0% compared to the previous year, while organic net sales growth was slightly up by 0.3% [6] - EBITDA before special items was DKK 519 million, with an EBITDA margin of 22.0%, down from 23.4% last year [1][6] - Free cash flow before acquisitions was DKK 173 million for the third quarter and improved to DKK 448 million for the first nine months [1][3][6] - Adjusted EPS for the third quarter was DKK 3.4, down from DKK 4.1 last year [1][6] Market Trends - Organic growth was positive in Handmade Cigars and Next Generation Products, while Machine-Rolled Cigars and Smoking Tobacco experienced negative organic growth [2] - The decline rate in handmade cigars shows early signs of stabilizing [2] - The EBITDA margin for the first nine months of the year was 19.9%, reflecting a decline due to product and market mix and investments in market share stabilization [3] Strategic Outlook - CEO Niels Frederiksen noted early signs of stable sales but continued margin compression due to market and product mix [5] - A new five-year strategy will be launched on 20 November 2025, aimed at creating meaningful value for stakeholders [5][9]