Financial development
Group sales for cigars for the full year 2007 were 3,411 MSEK (3,407), while operating profit was 737 MSEK (770).
In local currencies, sales increased by 6 percent, while operating profit increased by 2 percent, primarily attributable to acquired businesses.
In the US, cigar sales grew by 7 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 marginally in local currency.
About one third of Swedish Match cigar sales are in Europe. Sales outside of the US grew by 3 percent. This includes 6 months of sales from the recently acquired company Bogaert, which is especially strong in Benelux, France, and Germany.
Cigars, key data
* Operating capital for 2005 has not been restated in accordance with the new definition of net debt and includes net pension liabilities.