Financial development
For cigars, Group sales for the full year 2008 were 3,657 MSEK (3,411), while operating profit was 689 MSEK (737). In local currencies, sales increased by 8 percent, primarily attributable to acquired businesses.
In the US, sales grew by 11 percent in local currency. The American market represents 62 percent of total Swedish Match cigar sales. Cigars International Inc. was acquired in September 2007 and provided a positive contribution to both the sales and operating profit. Excluding the sales from Cigars International Inc., US cigar sales were down in local currency.
Sales outside of the US grew by 6 percent in Swedish krona. Approximately 33 percent of Swedish Match cigar sales are in Europe. This includes the incremental sales from Bogaert, acquired in June 2007, which is especially strong in Benelux, France, and Germany. Excluding the sales from Bogaert, non-US sales decreased by 4 percent in local currency.
Cigars, key data
* Operating capital for 2006 has not been restated in accordance with the new definition of net debt and therefore includes net pension liabilities.