Swedish Match Reports Record Sales

Swedish Match released its interim report, showing record sales with year-on-year revenue growth across product segments, despite comparing to a prior year quarter with elevated demand for certain product lines.

In local currencies, sales increased by 10 percent for the third quarter. Reported sales increased by 9 percent to SEK4.79 billion ($556.8 million).

The company had record operating profit from product segments in spite of continued ramp-up in spending behind growth opportunities for smoke-free products. In local currencies, operating profit from product segments increased by 2 percent for the third quarter. Reported operating profit from product segments increased by 1 percent to SEK2.1 billion.

Operating profit amounted to SEK2.08 billion for the third quarter. Profit after tax for the third quarter amounted to SEK1.54 billion. Profit after tax for the third quarter of the prior year included a charge of SEK286 million following an adverse ruling in a tax case.

On Sept. 14, Swedish Match announced its intention to spin off its U.S. cigar business to shareholders. Subject to various conditions, the separation is expected to be completed during the second half of 2022 at the earliest.

“I am pleased to report that Swedish Match in the third quarter continued to deliver double-digit revenue growth in local currencies along with improved operating profit compared to the third quarter of the prior year,” said Swedish Match CEO Lars Dahlgren.

“With continued ramp-up in marketing related activities to support brand building and long-term growth, as well as the elevated demand (brought on by the pandemic) for several product lines in the prior year period, the financial development in the third quarter is a testimony to the strength and potential of our business.”