Swedish Match employees have an exceptional ability to embrace change and promote a culture of openness and trust.
The Company will continue to leverage its leadership in snus and effectively compete in the snus and moist snuff markets in Scandinavia and the US, while exploring opportunities in other markets through the SMPM International joint venture.
Swedish Match will work to build on recent successes in US mass market cigars and leverage the strong platform in chewing tobacco by focusing on productivity and sound pricing strategies.
Swedish Match will continue to strive for ongoing operational excellence in its Lights businesses, developing its brands and constantly focus on productivity.
The Company will actively manage its minority holding of STG to realize the full potential of the new company.
Outlook 2012
During 2011, Swedish Match delivered a record operating profit on a comparable basis. For the full year 2012, the Company expects continued growth in revenues and comparable operating profit led by a solid development for Snus and snuff and Other tobacco products.
During 2011, Swedish Match increased its investments for Swedish snus outside Scandinavia. In the US, the trends for General snus are strong, and through the joint venture with SMPM International, the Company generated valuable insights and witnessed some early but encouraging signs in the market place. During 2012, the Company will continue to invest for growth. In the US, Swedish Match will expand distribution and invest further in marketing activities to build awareness and generate trial. In SMPM International, the plan is to add at least one additional test market during the year.
Swedish Match expects both the Scandinavian snus market and the US market for moist snuff to continue to grow in volume terms in 2012.
In the US mass market cigar business, the Company will launch additional innovative products and expects to continue to grow faster than the overall market and generate increased sales and profits in local currency. The trend of declining volumes for US chewing tobacco is expected to continue.
The tax rate for 2011, excluding one time items as well as associated companies and joint ventures, was 22 percent and is expected to be at a similar level in 2012.
The Company maintains its long term financial strategy and dividend policy, and remains committed to returning cash not needed in operations to shareholders.