News; Jul 23, 2008 CET

3 analyst comments

On July 18, Swedish Match reported half year result from January to June 2008. Financial analysts Henrik Fröjd, Kaupthing Bank, Jonathan Fell, Deutsche Bank and Anders Hansson, Danske Bank give their comments on the result.

Jonathan Fell, analyst Deutsche Bank:

“Reassuring results, which were above market expectations, and the market is pleased by this kind of performance in an environment where the world economy is getting tougher. Figures were excellent within the snus area, and also good to see how US cigars have recovered somewhat compared to last quarter. A slight disappointment that the group tax rate might increase next year, but that is a circumstance out of Swedish Match’s control. Swedish Match is a safe investment compared to other consumer stocks at the moment.”

Henrik Fröjd, analyst Kaupthing Bank:

“A result better than expected. Swedish snus in particular showed very good sales figures, a combination of price and component mix that was a pleasant surprise. Swedish Match is characterized by great stability, particularly when compared with other consumer-good companies. The area of concern, however, is the rate of tax, which is expected to rise. Sales of cigars in the US and Europe could have been higher, but I believe that mass-market cigars will contribute in the future.”

Anders Hansson, analyst Danske Bank:

“A good report, in which both Swedish snus and cigars delivered. The most positive aspect was Swedish snus sales in Scandinavia. On the downside, there is the proposed change to Swedish tax legislation, which may reduce earnings per share. The Swedish Match share has done well compared with other consumer-good companies, but I am looking forward to a quarter in which Red Man in the US makes a positive contribution, and Swedish Match can then show how well its Swedish snus operations can do.”


BY: Karoline Hammar