STG / Q1 2026: Handmade Cigars Drive Group Growth

With overall sales in decline, Scandinavian Tobacco Group’s handmade cigar segment posts 8% growth.

The first quarter is traditionally the weakest period of the year for STG. Consolidated revenue came in at 1.859 billion Danish kroner (DKK) — approximately €249,769 — down 6% compared to the same quarter in 2025. This contraction is largely attributable to unfavourable exchange rate movements (–5.2%), with the US dollar weighing heavily on the group’s revenue structure. At constant currencies, organic growth was virtually flat at –0.6%, held back by delivery timing shifts affecting machine-rolled cigars and nicotine pouches.

The standout performance came from the handmade cigar segment. With net sales of 660 million DKK (approximately €88,320) in the first quarter, the category recorded 8% organic growth compared to Q1 2025.

This momentum is driven primarily by STG’s own brands and its rapidly expanding retail store network. Retail posted double-digit growth, fuelled by new store openings, while online sales progressed at a more modest but positive pace. International sales were also up.

Cohiba/Silencio, CAO, Macanudo, Alec Bradley: the power brands

Among the flagship brands, Cohiba/Silencio and CAO both recorded double-digit growth over the period. Together with Macanudo and Alec Bradley, the four power brands account for 23% of handmade cigar category net sales — a level consistent with full-year 2025. STG attributes this strong start to the warm reception its recent product launches have received from both the trade and consumers.

This quarterly performance is part of the Focus2030 five-year strategy unveiled at the start of the year. The group identifies handmade cigars as one of its three strategic pillars, alongside machine-rolled cigars and smoking tobacco, and nicotine pouches.

The ambition is a bold one: to grow STG’s US handmade cigar market share from around 13% today to more than 15% by 2030. To get there, the group is betting on the expansion of its own retail network, a stronger online presence, and accelerated international sales growth. The first quarter of 2026 appears to confirm that the foundations are being laid.