Financial development
Sales for snuff and snus during 2008 increased by 16 percent to 3,829 MSEK (3,289). Operating profit for the year increased by 24 percent to 1,689 MSEK (1,366).
In the Scandinavian market, Swedish Match sales increased by 18 percent, from improved pricing and mix effects. Overall shipment volumes declined by 3 percent. However a strong volume growth in Norway and taxfree substantially offset volume declines in Sweden. Swedish volumes were negatively impacted by a substantial increase in the weight-based excise tax for snus. In the US, sales grew as the Company gained market share in a market that grew by more then 6 percent.1) Swedish Match shipment volumes in the US increased by 13 percent.
The operating margin was 44 percent for the year (42). The improved operating margin stems primarily from positive price and mix effects in Scandinavia and less pronounced trade loading and destocking effects in Sweden, more than offsetting significant product launch costs in the US.
1) Source: Swedish Match and industry estimates. ACNielsen estimates 2008 market growth of 6.4 percent.
Snuff and snus, 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.