Scandinavian Tobacco Group (STG) has revised its financial outlook for 2025 due to the impact of U.S. tariff policies and a weaker dollar. The Danish tobacco company announced the revised expectations in its first-quarter financial statement.

The adjustment reflects challenges posed by increased tariffs on imported goods to the U.S. and the devaluation of the dollar, according to CEO Niels Frederiksen. The U.S. market represents approximately 45% of STG’s revenue, making it a critical region for the company.

STG now anticipates revenue for 2025 to be in the range of DKK 9.1 to 9.5 billion, a decrease from the previous forecast of DKK 9.2 to 9.7 billion. Despite the revised forecast, Frederiksen maintains that the fundamental business trends remain largely consistent, even though consumer sentiment has been adversely affected.

The company’s primary focus is on effectively navigating this period of heightened uncertainty, with key objectives being to protect and expand market share, as well as safeguard cash flow. President Donald Trump’s announcement in April of comprehensive tariffs on imports from numerous countries, including a 10% tariff on goods from EU countries, has contributed to the challenging environment.

Since the beginning of March, the U.S. dollar has depreciated by nearly five percent against the Danish krone, further impacting the company’s financial performance. Following the announcement of the lowered expectations, Scandinavian Tobacco Group’s shares experienced a decline of over 11% on the Copenhagen Stock Exchange.