Company announcement 13/2016 - Scandinavian Tobacco Group A/S - Annual Report 2015: Improved underlying margins and strong cash flow
(Thomson Reuters ONE) -
Company Announcement
No. 13/2016
10 March 2016
Annual Report 2015
Improved Underlying Margins and Strong Cash Flow
Scandinavian Tobacco Group A/S - a world leading manufacturer of cigars and
traditional pipe tobacco - announces its result for the fourth quarter and full
year 2015.
Highlights 2015:
* Net sales increased by 9.9% to DKK 6,732 million - organic growth of 0.3%
* Reported EBITDA increased by 5.9% to DKK 1,247 million - organic growth
in EBITDA of 2.2%
* Profitability improvement leading to adjusted EBITDA margin of 20.5% (20.3%)
* Net profit increased by 4.3% to DKK 668 million
* Cash flow from operating activities increased by 21.7% to DKK 1,285 million
* Net sales and EBITDA margin delivered in accordance with our guidanceWe
achieved approx. 10% of the cost savings which in total are expected to
amount to DKK 140 million annually in 2018 as a result of our optimisation
and efficiency programme initiated in 2015. DKK 225 million of the expected
DKK 500 million in inventory reductions by 2018 were achieved during the
year.
* The Board of Directors proposes an ordinary dividend per share of DKK 5.00
corresponding to a 17% increase vs. 2014 and a 75% pay-out ratio of the net
profit
CEO Niels Frederiksen comments:
"In 2015, we made significant progress in optimising our business and we plan
for more. We report improved organic growth in EBITDA and improved cash flow. We
have increased productivity and successfully realised synergies from our 2014
acquisition of the Belgian cigar manufacturer Verellen. Our initiated
optimisation and efficiency programme is expected to deliver tangible cost
savings and working capital improvements. Our financial performance for 2015
supports our expectations for 2016."
Guidance maintained for 2016
Our guidance for 2016 is unchanged. We expect an organic growth in net sales of
1-3% and an organic growth in EBITDA of 3-5%. Capex is expected to be approx.
DKK 250 million including capex of DKK 100 million related to the implementation
of the revised EU Tobacco Products Directive.
The annual report for 2015 is available for download on: investor.st-group.com.
Conference Call and Webcast
A conference call and webcast will be held on 10 March 2016 at 10:00 AM CET.
Presentation materials will be available online approx. one hour before the
meeting on investor.st-group.com.
Dial-in details:
Denmark: +45 32 71 16 58
The UK: +44 20 3427 1904
The US: +1 212 444 0895
Passcode: 8042614
Webcast: http://edge.media-server.com/m/p/8v9cvh6c
For further information, please contact:
For media enquiries:
Kaspar Bach Habersaat, Director of Group Communications, phone: +45 7220 7152 or
kaspar.bach(at)st-group.com.
For investor enquiries:
Torben Sand, Head of Investor Relations, phone: +45 7220 7126 or torben.sand(at)st-
group.com.
Financial Highlights for Q4 2015
Strong performance in handmade cigars contributed to organic growth of 2.7%
Net sales increased by 8.4% to DKK 1,767 million (DKK 1,630 million). Organic
net sales growth was 2.7% driven by continued strong net sales development in
our handmade cigars category. Net sales of fine-cut tobacco were negatively
impacted by a terminated distribution agreement for third party products and
stock building on the Danish-German border at the end of 2014.
Gross profit increased by 2.6% - margins impacted in Q4
In total, gross profit increased by 2.6% to DKK 822 million (DKK 801 million)
implying a gross margin of 46.5% (49.1%). The margin declined due to, in
particular, the reversal of certain pension provisions in the machine-made
cigars category which had a positive effect on Q4 2014.
Gross margin developed positively for handmade cigars and fine-cut tobacco
whereas gross margins decreased for machine-made cigars and pipe tobacco.
EBITDA margin of 17.4%
Reported EBITDA decreased by 0.5% to DKK 308 million (DKK 310 million). Adjusted
EBITDA decreased by 13.3%.
Reported EBITDA margin was 17.4% (19.0%). Adjusted EBITDA margin was 18.9%
(22.5%). The quarter included non-recurring items of DKK 25.7 million related to
incentive plans, restructuring of management in our US handmade cigars business
and preparations related to the revised EU Tobacco Products Directive.
Reported net profit for the quarter decreased by 2.2% to DKK 174 million (DKK
178 million).
Cash flow increased by 22.1%
Cash flow from operating activities increased by 22.1% to DKK 389 million (DKK
318 million) driven by reduction in working capital. Free cash flow amounted to
DKK 326 million (DKK 306 million).
Capital expenditures amounted to DKK 64 million (DKK 63 million).
Scandinavian Tobacco Group - Key Figures
------------------------------------------------------- -----------------------
DKKm 2015 2014 2013 Q4 15 Q4 14
------------------------------------------------------- -----------------------
Income statement
Net sales 6,732 6,126 5,925 1,767 1,630
Gross profit 3,239 2,947 2,915 822 801
EBITDA 1,247 1,177 1,175 308 310
Net profit 668 640 573 174 178
Balance sheet
Total assets 14,544 14,162 13,196 14,544 14,162
Equity 8,998 9,087 8,333 8,998 9,087
Net interest-bearing
debt (NIBD) 3,011 2,698 2,808 3,011 2,698
Cash flow statement
Cash flow from
operating activities
(CFFO) 1,285 1,056 745 389 318
Free cash flow 1,057 585 427 326 306
Total capital
expenditures 236 215 302 64 63
Key ratios
Gross profit,
adjusted 1) 3,282 2,947 2,915 822 801
EBITDA, adjusted 1) 1,385 1,247 1,198 334 367
Net sales growth 9.9% 3.4% -0.9% 8.4% -
Organic net sales
growth 1) + 2) 0.3% 2.9% 0.7% 2.7% -
Organic EBITDA growth
1) + 2) 2.2% 4.8% -5.6% -13.3% -
Gross margin 48.1% 48.1% 49.2% 46.5% 49.1%
Gross margin,
adjusted 1) + 2) 48.7% 48.1% 49.2% 46.5% 49.1%
EBITDA margin 18.5% 19.2% 19.8% 17.4% 19.0%
EBITDA margin,
adjusted 1) + 2) 20.5% 20.3% 20.2% 18.9% 22.5%
NIBD / adjusted
EBITDA 1) 2.2 2.2 2.3 - -
ROIC 3) 7.4% 7.7% 6.5% - -
ROIC 3, ex. goodwill
and trademarks 2010
merger 13.3% 13.7% 11.8% - -
Dividend per share
(DKK) 4) 14.0 4.3 3.8 - -
Payout ratio 210% 67% 67% - -
------------------------------------------------------- -----------------------
1) Adjusted net sales, gross profit and EBITDA are
defined as excluding non-recurring items
2) Organic growth rates are defined as growth in adjusted net sales and EBITDA
- excluding currencies and acquisitions
3) EBIT / (12 mth average invested capital)
4) In 2015 an extraordinary dividend was paid of DKK 9.00 per share (DKK 900
million)
Key Data Per Category
----------------------------------------------------------------- -------------
2015 2014 2013 Q4 15 Q4 14
----------------------------------------------------------------- -------------
Net sales (DKKm)
Handmade cigars 1,935 1,514 1,368 497 407
Machine-made cigars 2,702 2,595 2,513 711 710
Pipe tobacco 629 569 567 170 140
Fine-cut tobacco 583 562 522 144 155
Other 882 886 956 245 219
----------------------------------------------------------------- -------------
Group total 6,732 6,126 5,925 1,767 1,630
----------------------------------------------------------------- -------------
Gross profit (DKKm)
Handmade cigars 843 656 603 217 174
Machine-made cigars 1,372 1,341 1,362 354 392
Pipe tobacco 378 340 333 91 83
Fine-cut tobacco 342 300 274 76 79
Other 304 310 342 84 74
----------------------------------------------------------------- -------------
Group total 3,239 2,947 2,915 822 801
----------------------------------------------------------------- -------------
Organic net sales growth
(%)
Handmade cigars 7.9% 9.6% 2.3% 7.0% -
Machine-made cigars -2.3% 2.2% -2.6% -1.1% -
Pipe tobacco 1.6% 0.5% 5.4% 14.6% -
Fine-cut tobacco -1.3% 8.8% 7.3% -10.6% -
Other -4.5% -6.6% 1.2% 8.9% -
----------------------------------------------------------------- -------------
Group total 0.3% 2.9% 0.7% 2.7% -
----------------------------------------------------------------- -------------
Volume impact (%)
Handmade cigars 6.6% 7.3% -3.0% 10.1% -
Machine-made cigars -5.7% -0.6% -4.2% -4.0% -
Pipe tobacco -5.1% -3.1% 1.5% 9.9% -
Fine-cut tobacco -6.0% 1.1% 0.7% -16.9% -
Other - - - - -
----------------------------------------------------------------- -------------
Group total - - - - -
----------------------------------------------------------------- -------------
Price/Mix impact (%)
Handmade cigars 1.3% 2.3% 5.3% -3.0% -
Machine-made cigars 3.4% 2.8% 1.6% 2.9% -
Pipe tobacco 6.7% 3.6% 3.9% 4.7% -
Fine-cut tobacco 4.7% 7.7% 6.6% 6.2% -
Other - - - - -
----------------------------------------------------------------- -------------
Group total - - - - -
----------------------------------------------------------------- -------------
Gross margin (%)
Handmade cigars 43.6% 43.3% 44.1% 43.7% 42.7%
Machine-made cigars 1) 50.8% 51.7% 54.2% 49.8% 55.2%
Pipe tobacco 60.1% 59.8% 58.8% 53.6% 59.5%
Fine-cut tobacco 58.5% 53.4% 52.5% 52.8% 51.1%
Other 34.5% 35.0% 35.8% 34.2% 33.5%
----------------------------------------------------------------- -------------
Group total 1) 48.1% 48.1% 49.2% 46.5% 49.1%
----------------------------------------------------------------- -------------
1) 2015 incl. non-recurring items of DKK -43.7m in gross profit
and DKK -6.9m in net sales. Adjusted gross margin is 52.2%
(machine-made cigars) and 48.7% (Group)
Adjustments to Net Sales, Gross Profit and EBITDA
----------------------------------------------------- ------------
DKKm 2015 2014 2013 Q4 15 Q4 14
----------------------------------------------------- ------------
Net sales
Reported 6,732 6,126 5,925 1,767 1,630
Non-recurring items 7 0 0 0 0
----------------------------------------------------- ------------
Net sales, adjusted 6,739 6,126 5,925 1,767 1,630
Gross profit
Reported 3,239 2,947 2,915 822 801
Non-recurring items 44 0 0 0 0
----------------------------------------------------- ------------
Gross profit, adjusted 3,282 2,947 2,915 822 801
EBITDA
Reported 1,247 1,177 1,175 308 310
Non-recurring items 138 69 24 26 57
----------------------------------------------------- ------------
EBITDA, adjusted 1,385 1,247 1,198 334 367
----------------------------------------------------- ------------
About Scandinavian Tobacco Group
Scandinavian Tobacco Group A/S with its subsidiaries (the "Group") is a world
leading producer of cigars and traditional pipe tobacco. The Group also produces
fine-cut tobacco and sells tobacco-related accessories. The Group produces and
sells 3 billion cigars and 5,000 tonnes of pipe and fine-cut tobacco annually.
Scandinavian Tobacco Group believes it is the only company globally with a core
strategic focus on production and distribution in all of these tobacco
categories.
Scandinavian Tobacco Group holds market-leading positions in the machine-made
cigar market in Europe, the handmade cigar market in the US, the online and
catalogue retail sales of cigars in the US, the traditional pipe tobacco market
globally and in selected fine-cut tobacco markets.
Scandinavian Tobacco Group has a diversified portfolio of more than 200 brands
providing a complementary range of established global brands and local
champions. In the cigar segment, the brand portfolio comprises Café Crème, La
Paz, 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.
As at 31 December 2015, the Group employed approx. 8,100 people in the Dominican
Republic, Honduras, Nicaragua, Indonesia, Europe, New Zealand, Australia, Canada
and the US.
For more information please visit www.st-group.com.
Scandinavian Tobacco Group A/S
Sydmarken 42
DK-2860 Søborg
Denmark
CVR 31 08 01 85
Annual Report 2015:
http://hugin.info/171738/R/1993241/733779.pdf
Press release (PDF):
http://hugin.info/171738/R/1993241/733778.pdf
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Scandinavian Tobacco Group A/S via GlobeNewswire
[HUG#1993241]
Unternehmensinformation / Kurzprofil:
Datum: 10.03.2016 - 08:00 Uhr
Sprache: Deutsch
News-ID 456572
Anzahl Zeichen: 18108
contact information:
Town:
Søborg
Kategorie:
Business News
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