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Company Announcement No. 54/2021 Interim report , 1 January - 30 September 2021 SCANDINAVIAN TOBACCO GROUP Copenhagen , 4 November 2021 Scandinavian Tobacco Group A / S reports Q3 results in line with ex pectations and maintains full year guidance For the third quarter of 2021 Scandinavian Tobacco Group delivered strong results against difficult 2020 comparisons . Organic net sales declined by 2 % and organic EBITDA grew 1 % . The results were driven by continued strong demand for handmade cigars in the US , a favourable market- and product mix , and synergies from the integration of Agio Cigars . Supply issues in Europe impacted net sales negatively in the third quarter . ● Q3 Highlights Net sales were DKK 2,182 million ( DKK 2,231 million ) with -2.2 % organic growth . EBITDA before special items was DKK 627 million ( DKK 614 million ) with 0.9 % organic growth . The EBITDA margin was 28.7 % ( 27.5 % ) . Organic EBITDA growth is positively impacted by a DKK 31 million income from certain duty refunds in the US . Adjusted Earnings Per Share ( EPS ) were DKK 4.2 ( DKK 4.0 ) . Free cash flow before acquisitions was DKK 564 million ( DKK 609 million ) . Return on Invested Capital was 12.9 % ( 9.1 % ) . In the first 9 months of 2021 , net sales grew by 5.4 % organically to DKK 6,221 million ( DKK 6,084 million ) , and EBITDA before special items grew by 19.5 % organically to DKK 1,759 million ( DKK 1,429 million ) with free cash flow before acquisitions stable at DKK 1,086 mil lion ( DKK 1,156 million ) . CEO Niels Frederiksen : " We deliver strong quarterly performance in line with expectations and main tain the positive momentum we have had throughout 2020 and 2021. The combination of the integra tion of Agio Cigars , the growth in handmade cigars and our underlying transformation have signifi cantly improved our performance and raised our earnings and margins levels . I remain proud and impressed with the way our organization has continued to deliver a strong performance throughout a challenging period " . Based on the results for the first nine months of 2021 the financial outlook for the full year is un changed : EBITDA : Organic growth in the range of 16 % -20 % Free cash flow before acquisitions : In the range of DKK 1.0-1.3 billion Adjusted Earnings Per Share > 35 % increase