Karelia Tobacco (KARE) Q4 2025 earnings summary

Executive summary

• Consolidated net turnover (excluding excise duty and VAT) rose 21% year-over-year to €342.7 million, with total turnover reaching €1.67 billion, up 10.7%.

• EBIT increased 27.1% to €133.1 million, while EBITDA grew 24.9% to €140.3 million year-over-year.

• Net profit after tax and non-controlling interests declined 8.5% to €103.3 million, mainly due to negative FX differences and lower interest income.

• Gross profit margin improved to 47.4% from 46.96% in 2024.

• Cash reserves and investments exceeded €845 million, up 6.3% year-over-year.

Financial highlights

• Operating & net financial result rose 19% to €154.0 million.

• Profit before tax margin was 15.4%, down from 18.1% in 2024.

• Dividend proposed at €14.60 per share (+4.3% year-over-year), yielding 4.1%.

• Capital expenditure for the year was €6.5 million.

• Group equity increased to €856 million from €792 million.

Outlook and guidance

• Management expects modest growth in domestic cigarette volumes and a slight decline in RYO tobacco for early 2026.

• International sales volumes show marginal upward trends, with further growth anticipated in EU and Balkan markets.

• Geopolitical uncertainty, especially in the Middle East, may impact energy and raw material costs.

• Regulatory changes in the EU could introduce stricter packaging and higher tobacco taxes, potentially affecting sales and profitability.