Karelia Tobacco (KARE) Q2 2026 earnings summary

Executive summary

• H1 2026 net turnover was €182.6m, up 9.23% YoY; profit before tax rose 87.85% to €99.7m and net profit to €78.1m.

• Higher selling prices, lower tobacco and filter-material procurement costs, stable overheads, stronger cigarette volumes and favorable FX supported results.

Financial highlights

• Net turnover, excluding excise tax and VAT, was €182.580m vs €167.158m; total reported turnover including excise and VAT was €861.268m vs €786.707m.

• Operating income was €83.310m, up 31.15% YoY; net financial result was €10.676m, up 0.87%.

• Net profit was €78.101m vs €41.542m; basic and diluted EPS increased to €28.2978 from €15.0514.

• H1 operating cash flow reached €134.753m vs €72.421m; ending cash and cash equivalents were €330.448m vs €238.746m a year earlier.

Outlook and guidance

• 2026 cigarette volumes are expected to exceed 2025, but with a smaller growth rate than H1; RYO volumes are expected flat in Greece and slightly higher internationally.

• Management expects organic profitability to remain high in H2; cigarette sales in early H2 continued to grow at nearly H1 rates.

• Growth is expected across most Western European and Balkan markets, with anticipated share gains in Spain, Romania, Croatia and Serbia; Bulgaria and Turkey are also expected to perform well.

• Near-term priorities include protecting share through brand competitiveness amid expected excise increases; the euro-dollar outlook remains highly uncertain.