Swedish Match enjoys snus and cigar volume growth

Swedish Match’s shipment volumes of snus in Scandinavia during the three months to the end of September, at 61.2 million cans, was five percent up on those of the three months to the end of September 2014.

SM’s share of the snus market in Sweden during the three months to the end of September, at 69.3 percent, was down by 0.6 of a percentage point on that of the three months to the end of September 2014, while its share of Sweden’s premium market sector was down by 0.6 percent to 93.1 percent and its share of the country’s value market segment was increased by 2.3 percent to 40.6 percent.

SM’s share of Norway’s snus market was down by 3.3 percent to 56.0 percent.

At the same time, SM’s moist snuff shipment volumes in the US, at 34.7 million cans, were down by two percent.

And SM’s US cigar shipment volumes, at 311 million, were up by 14 percent, while its US chewing-tobacco shipment volumes, at 1,857,000 pounds, were down by nine percent.

Shipments of matches were down by 15 percent to 16.5 billion while lighter shipments were up by nine percent to 102.6 million.

Meanwhile, SM’s sales for the third quarter increased by 10 percent to SEK3,756 million, while in local currencies sales were up by four percent, with increases across all product areas.

Operating profit from product areas, which excludes SM’s share in the net profit of the Scandinavian Tobacco Group (STG), increased by 12 percent to SEK979 million, while in local currencies operating profit from product areas was up by four percent.

Operating profit, which includes SM’s share in the net profit of STG, increased by nearly eight percent to SEK1,065 million, though it was negatively impacted by restructuring costs in SM’s share of net profit from associated companies.

Basic earnings per share were increased by nearly 10 percent to SEK3.84.

In announcing SM’s interim report, CEO Lars Dahlgren said he was “very pleased by the developments during the third quarter – particularly by the market share gains for snus in Sweden, the growing volumes for snus and the continued growth for cigars in the US”.