Scandinavian Tobacco Group (STG), maker of cigars, fine-cut and pipe tobaccos, said organic sales were unchanged through nine months and forecast the same for full-year 2016 due to changes in European tobacco regulations.

“Our revised net sales guidance reflects our current expectations to the full year based on the actual sales performance year to date impacted by the continued challenges in machine-made cigars. The challenges primarily relate to the total market developments and the impact from the late adoption of the new EU Tobacco Products Directive {TPD} that drags into the fourth quarter interrupting deliveries and market dynamics more than previously anticipated,” said STG. The Denmark-based company forecast operating profit growth for the full year at 3-5 per cent.
Third-quarter sales dipped 0.2 percentage point to DKK 1.7 billion (EUR 228,000) while operating profit stripped of acquisitions rose nearly 5 per cent to DKK 328 million.