Share Buybacks: Scandinavian Tobacco 

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July 2024

On 10 November 2023, Scandinavian Tobacco Group (STG) announced a share buy-back program of an aggregated value of up to kr.850 million running until February 28, 2025. Between November 13, 2023 and July 5, 2024, 5.09 million have been accumulated under the Program for an aggregate amount of kr.562.2 million (kr.110.4 per share).

Accordingly, close to two thirds of the program budget has been spent in the first half of the program duration. Following the most recent transactions, STG owns a total of ~4.48 million, corresponding to 5.2% of the total share capital.

In the 4-month period, from the initiation of the new program (November 2023) to the announcement of the FY23 results (March 2024), STG shares rallied more than 15% and, subsequently, reached just shy of kr.130. STG’s FY23 results & FY24 guidance revealed the extent to which growth investments weigh on the operating margin, EPS and FCF; consequently, STG shares have been under pressure since then, trading as low as kr.95 and trying to re-capture the kr.100 level at the time of the writing.

Since the initiation of the kr.850 share re-purchase program almost eight months ago, STG removed ~6% of its share capital from the market while its share price plunged ~9% in the same period (or, down ~1% when adjusted for the kr8.4 dividend paid in April 2024).

November 2023

STG announced a new kr.850Mn share buy-back program that starts on November 13, 2023 and runs until February 28, 2025. Based on the closing price before announcement (kr.109.3), the new share buy-back amount corresponds to ~7.8Mn shares – or, roughly 9% of the share capital.

STG shares gained +10% in the two weeks following the initiation of the new program.

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