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Market-leading brands – a platform for the future
Swedish Match is a global Group with a broad offer of market-leading brands in smokefree tobacco products, cigars, pipe tobacco and lights products. The Swedish Match share is listed on the OMX Nordic Exchange in Stockholm.
NET SALES
12,551MSEK
OPERATING PROFIT
2,997MSEK
  • In local currency sales increased by 1 percent
  • Profit comparison affected by hoarding effects of snus in Sweden
  • Successful launch for Red Man snuff in the US
  • Three cigar businesses were acquired in Europe and the US
KEY DATA, msek
       
  2007 2006 2005
Net sales 12,551 12,911 13,311
EBITDA excluding larger one time items 3,166 3,583 3,206
Operating profit 2,997 3,285 2,825
Operating margin, % 21.8 24.3 19.7
Profit for the year 2,056 2,335 1,777
Earnings per share, SEK 7.82 8.13 5.61
Dividend per share, SEK 3.50* 2.50 2.10
* Board proposal      
Some of our product news
Vertigo
Vertigo is a modern snus designed for women. It has a unique waist-formed can and is available in the varieties Bahama Velvet and Cuba Gold, both with a natural tobacco flavor inspired by the sun-ripe Caribbean.
Stradivarius
Stradivarius is a completely new premium cigar brand in the US market. The combination of choice tobacco and exceptional craftsmanship has resulted in a very exclusive cigar.
Red Man
Red Man, the largest brand of chewing tobacco in the US, was launched as traditional moist snuff in the US during the year. It is available in the following varieties: Long Cut Straight, Long Cut Wintergreen and Fine Cut Natural.
Macanudo Club
Macanudo Club is a new member in the Macanudo family, the most popular premium cigar brand in the US. Macanudo Club
is a smaller cigar for the international market.
Borkum Riff Genuine
Borkum Riff Genuine is Borkum Riff’s first pipe tobacco without flavor additives and represents an entirely new trend in the brand. This variety consists of Virginia and Burley tobaccos, and has overtones of nuts, chocolate and coffee.
Contents
This is Swedish Match 2
 
CEO comment
Another successful year 4
Our strategy 6
Market and business environment 8
 
Our business
Brand strategy and product development 10
Snuff and snus 12
Cigars 18
Chewing tobacco 24
Pipe tobacco and accessories 26
Lights 29
Our people 32
Our role in society
The Code of Conduct 34
Social responsibility 35
Environment 37
Snus and health 39
Financial reports
Report of the Board of Directors 42
Consolidated Financial Statements
Income Statement 48
Balance Sheet 49
Statement of Recognized Income and Expense 50
Cash Flow Statement 51
Notes for the Group 52
Parent Company Financial Statements
Income Statement 80
Balance Sheet 81
Changes in Equity 82
Cash Flow Statement 83
Notes for the Parent Company 84
 
Proposed distribution of earnings 90
Auditor’s report 91
 
Corporate Governance
Corporate Governance report 92
Board of Directors 98
Group Management 100
 
Shareholder information
Five-year summary 102
Quarterly data 104
Definitions 105
The share 106
Information to our shareholders 108