Swedish Match Reports Double-Digit Growth
Swedish Match reported sales of SEK4.46 billion ($528.46 million) in the first quarter of 2021, up 11 percent over those in the 2020 first quarter. In local currencies, sales increased by 23 percent.
Reported operating profit from product segments increased by 26 percent to SEK2.09 billion. In local currencies, operating profit from product segments increased by 40 percent.
Operating profit, which includes a settlement income of SEK300 million related to a previously ongoing arbitration concerning nicotine pouches, amounted to SEK2.35 billion.
Profit after tax amounted to SEK1.78 billion.
Continued momentum for ZYN drove strong U.S. performance in the smoke-free product segment. In Scandinavia, strong underlying development was enhanced by timing effects on shipments and Covid-19-related channel mix effects.
We remain encouraged by the strong market growth for the nicotine pouch category as consumers continue to seek satisfying alternatives to cigarettes and other traditional tobacco products.
The cigar business featured record volumes, sales and operating profit on the back of strong category growth and improved price mix.
No major operational Covid-19-related disruptions and Covid-19-related effects in aggregate are estimated to have elevated the reported financial performance.
“Swedish Match delivered an impressive financial performance in the first quarter,” wrote Swedish Match CEO Lars Dahlgren in the company’s interim report. “We remain encouraged by the strong market growth for the nicotine pouch category as consumers continue to seek satisfying alternatives to cigarettes and other traditional tobacco products, and we are excited to be well positioned to participate in this market dynamic.
“I am very pleased with our first-quarter performance and look forward to the opportunities and challenges facing Swedish Match with confidence.”