Karelia Tobacco (KARE) Q3 2025 earnings summary

Executive summary

• Net turnover for the first nine months of 2025 increased by 14.35% year-over-year, driven by strong sales growth in Greece, Bulgaria, Western Europe, and the Middle East, offsetting declines in the Far East.

• Operating results for the nine months rose 19.7% to €101.4 million, while net profit before tax decreased 6.5% to €95 million, mainly due to negative currency exchange differences of €22 million.

• Gross profit margin improved to 48.3% in Q3 2025 from 44.4% in Q3 2024, supported by lower raw material costs and higher selling prices.

• Cigarette volumes increased 9.7% in Greece and 13.2% internationally in Q3 2025 compared to the prior year.

Financial highlights

• Group turnover for 9M 2025: €1,254.3 million (up from €1,124.6 million in 9M 2024).

• Net profit for 9M 2025: €74.5 million (down from €80.1 million in 9M 2024).

• EBITDA for 9M 2025: €106.7 million, up 18.5% year-over-year.

• Basic EPS for 9M 2025: €27.01 (down from €29.00 in 9M 2024).

• Net cash from operating activities: €90.1 million for 9M 2025 (up from €82.7 million in 9M 2024).

Outlook and guidance

• No significant changes expected for the remainder of 2025; continued investment in production capacity and flexibility to meet international demand.

• Monitoring of upcoming EU directives that may impact the tobacco industry.