Scandinavian Tobacco Group Completes Divestment of BREAK and Moro

Scandinavian Tobacco Group A/S has completed the divestment of its fine-cut tobacco brands, BREAK and Moro, to Japan Tobacco (JT) for a transaction value of DKK 1.3 billion (DKR 1 billion post-tax). This divestment, announced on 1 October 2026, marks the company’s strategic move to focus on its core operations and align with its financial expectations for the year.

The transaction, which was first announced in Company Announcement No. 8/2026 on 22 July 2026, involves the sale of certain inventories to JT, with the proceeds from these inventories not included in the transaction value for the brands. Instead, these proceeds will be added to the free cash flow before acquisitions and divestments. As a result, the Group has revised its free cash flow guidance for 2026, now expecting the figure to be in the range of DKK 1.2-1.4 billion, up from the previous range of DKK 950-1,200 million.

Despite the transaction being dilutive to earnings, the divestment is not expected to impact the Group’s 2026 guidance ranges for reported net sales growth at constant currencies, the EBIT margin before special items, or the adjusted earnings per share. These financial metrics remain unchanged.

This divestment is part of the company’s ongoing efforts to streamline its portfolio and enhance its financial performance. The transaction value of DKK 1.3 billion underscores the strategic importance of these brands to Japan Tobacco, reflecting the global tobacco market’s continued focus on premium and fine-cut tobacco products.

In conclusion, the divestment of BREAK and Moro to Japan Tobacco is a significant step in Scandinavian Tobacco Group A/S’s strategic plan. The company remains committed to its core business and expects to maintain its financial guidance for the year, despite the transaction’s impact on earnings.