Swedish Match’s volume shipments of snus in Scandinavia during the 12 months to the end of December, at 247.6 million cans, were increased by three percent on those of the year to the end of December 2016, 241.3 million cans.
But despite the volume increase, SM’s share of Sweden’s snus market fell by 2.1 percentage points, from 67.3 percent during 2016 to 65.2 percent during 2017. And it’s share of Norway’s snus market fell by 1.4 percentage points to 52.1 percent.
Meanwhile, SM’s volume shipments of moist snuff on the US market during 2017, at 127.4 million cans were down by three percent on those of 2016, 131.4 million cans.
Also in the US, the company’s volume shipments of cigars in 2017, at 1,629 million, were increased by 11 percent on those of 2016, 1,472 million.
But, during the same period, volume shipments of chewing tobacco, excluding contract manufacturing volumes, at 6,341,000 pounds, were down by five percent from 6,709,000 lb.
SM’s worldwide shipments of matches during 2017, at 65.0 billion sticks, were down by 10 percent on those of 2016, 72.0 billion sticks.
During the same period, worldwide shipments of lighters fell by eight percent from 399.2 million to 368.1 million.
In announcing its results, SM said that, in local currencies, sales had increased by six percent for the fourth quarter and by thee percent for the full year. Reported sales had increased by two percent to SEK4,044 million for the fourth quarter and by four percent to SEK16,101 million for the full year.
In local currencies, operating profit from product areas (excluding larger one-off items and a share of the net profit of the Scandinavian Tobacco Group [STG] in 2016) increased by 15 percent for the fourth quarter and by five percent for the full year. Reported operating profit from product areas increased by nine percent to SEK1,044 million for the fourth quarter and by six percent to SEK4,218 million for the full year.
Operating profit amounted to SEK1,179 million for the fourth quarter and to SEK4,591 million for the full year.
Profit after tax amounted to SEK904 million for the fourth quarter and to SEK3,400 million for the full year.
Earnings per share amounted to SEK5.10 for the fourth quarter and to SEK18.88 for the full year. Earnings per share excluding larger one-time items, dividends from STG in 2017 and share of net profit in STG in 2016 increased by 17 percent to SEK4.24 for the fourth quarter and by 14 percent to SEK16.39 for the full year.
“I am very pleased with Swedish Match’s performance in 2017 – a year of solid growth, with higher sales and operating profit from product areas,” said CEO Lars Dahlgren.
“Investments that we have made within our consumer insights and R&D functions have strengthened our portfolio of smokeless offerings, and we have supplemented organic efforts through acquisitions.
“In recent years, global tobacco competitors have signaled a shift in their strategic agendas to acknowledge the role of less harmful alternatives. With our vision of a world without cigarettes and long history of offering tobacco consumers significantly less harmful products, Swedish Match has pioneered this effort.”
SM snus volumes up
