Productivity enhancement

In parallel with the focus on organic growth, efforts are pursued consistently to attain a more market-oriented organization and a more efficient production structure.

The focus in recent years on significant structural and rationalization programs has led to sizeable improvements in consolidated operating profit and operating margin.

Swedish Match has continuously engaged in programs to improve its productivity. These changes have led to higher earnings and improved resource management.

For chewing tobacco, the Company has engaged in third party production agreements, and thereby supply products to a large player in the US market, improving resource allocation.

The Lights product area has also seen the completion of wide-ranging restructuring programs in recent years aimed at boosting earnings. Operations lacking clearly identifiable synergies with other businesses have been divested, as have activities which provided low earnings. In addition, rationalization programs at match plants have been completed. As a result, Group earnings have improved substantially.

Page updated Oct 4, 2010

Share

Addresses

Stockholm
Swedish Match AB
Corporate Headquarters
Box 7179
SE-103 88 Stockholm
Visiting address:
Västra Trädgårdsgatan 15
Phone: +46 8 658 0200
Fax: +46 8 720 7656