Lights
Swedish Match is a leading manufacturer and distributor of matches and lighters with a strong brand portfolio across the globe. Lights include matches, lighters and complementary products.
Production of matches takes place in Sweden and Brazil. Lighters are produced in the Philippines, the Netherlands, and Brazil.
The Company also offers a portfolio of complementary products, including disposable razors, batteries, light bulbs, and tooth picks under the Fiat Lux brand.
| Key data, MSEK | 2018 | 2017 | 2016 |
|---|---|---|---|
| Sales | 1,246 | 1,291 | 1,314 |
| Operating profit | 189 | 211 | 219 |
| Operating margin, % | 15.2 | 16.4 | 16.7 |
| Swedish Match shipment volumes, worldwide | 2018 | 2017 | Change, % |
|---|---|---|---|
| Matches, billion sticks | 64.5 | 65.0 | -1 |
| Lighters, million units | 333.9 | 368.1 | -9 |
Share of Group total:
Sales: 10%
Operating profit: 4%
Main brands:
Matches: Solstickan, Nitedals, Fiat Lux, Redheads
Lighters: Cricket
Main markets: Latin America, Asia Pacific, Europe
Production units: Sweden, Brazil, the Philippines, the Netherlands
Strategy
With its portfolio of well-known brands and strong market positions, Swedish Match works for continuous operational excellence in the Lights product segment. The Company is committed to maintaining and improving its already efficient manufacturing operations as well as capitalizing on its market positions. With its high and demanding quality standards, fast and flexible production, and ongoing customer feedback, Swedish Match is able to provide consumers and customers with the quality products they demand at attractive prices. Swedish Match will work to grow its sales and profitability for both matches and lighters by tightly controlling costs and strengthening the overall presence for its premium lighter and match products. Swedish Match will also focus on further developing its business for complementary products.
Financial development
(Note: Comments below refer to the comparison between full year 2018 vs. full year 2017).
Sales declined by 4 percent, primarily as a result of a particularly weak performance for this reporting segment in the first quarter. Sales for lighters declined markedly on lower volumes, while sales for matches declined slightly due to negative currency effects partially offset by favorable price/mix effects. More than half of the full year volume decline in lighter shipments was attributable to the discontinuance of shipments of third-party manufactured lower priced lighters to the UK market. Operating profit declined, principally attributable to the soft performance for lighters. Reported operating profit was affected by restructuring costs totaling 18 MSEK in the current year and 11 MSEK in the prior year.
See financial tables by product segment for more financial information.
