Scandinavian Tobacco Group (STG) has unveiled its new five-year strategy, Focus2030, ahead of its Capital Markets Day tomorrow (November 20). The plan focuses on strengthening the company’s core machine-rolled and smoking-tobacco business in Europe, expanding handmade cigar operations in the U.S., and accelerating growth in the nicotine pouch category.

To support these priorities, STG’s board has set new financial ambitions and a flexible shareholder-return policy. Targets include a return on invested capital of at least 11% by 2030, low single-digit annual EBIT growth, and free cash flow before acquisitions of at least DKK 1.2 billion ($180 million). The shareholder-return framework moves to a 40–60% dividend payout ratio based on adjusted earnings per share, with share buybacks added when leverage permits. Since listing in 2016, STG has returned more than DKK 9 billion ($1.4 billion) to shareholders.

Early in the strategy period, the company plans DKK 200 million ($30 million) in cost improvements aimed at boosting efficiency and earnings resilience. CEO Niels Frederiksen said Focus2030 is designed to create long-term value for consumers, employees, and shareholders and to position STG for growth beyond 2030.

The Capital Markets Day presentation will be livestreamed from 14:00 to 16:30 CET.

This article was adapted from an original report published on tobaccoreporter.com. All rights belong to the original publisher.