• Skip to main content
  • Go to main navigation
  • Go to language selector
SearchFree text

Swedish Match
SWMA Jul 1, 2022
5:29 PM CET
+ 0.3 % 104.55 SEK
The share
  • svenska
Close
  • Swedish Match websites

    • Image Bank
    • Swedish Match Brasil
    • Swedish Match Industries
    • Snus and Match Museum
  • Brand websites

    Smokefree

    • Swedish Match e-commerce service (SE)
    • Swedish Match e-commerce service (CH)
    • General (US)
    • Longhorn (US)
    • Pinkerton Tobacco
    • ZYN

    Lights

    • Cricket
    • Nitedals
    • Redheads
  • Other

    • Swedish Match Denmark
    • The Solstickan Foundation (SE)
  • Our company More Less

    Our company

    • Our company in brief More Less
      • CEO comment
      • Fact sheet
    • Vision and strategy More Less
      • Financial strategy
      • Sustainability strategy
      • Acquisitions and divestments
    • Markets More Less
      • Our product categories and markets
      • Trends
    • Organization More Less
      • Operating locations
      • Employees
    • Company history More Less
      • Svenska Tobaks AB
      • Svenska Tändsticks AB
      • Swedish Match AB
    • Corporate brand

    CEO comment

  • Our business More Less

    Our business

    • Smokefree More Less
      • Market development More Less
        • Smokefree products in the US
        • Smokefree products in Scandinavia
        • Smokefree products in Other markets
      • Nicotine products and regulations
      • History of snus
      • Snus production
      • Ingredients in snus
    • Cigars More Less
      • Market development
      • History of cigars
    • Lights More Less
      • Market development
    • Risk management
    • Outlook and risk factors

    Snus production

  • Corporate Governance More Less

    Corporate Governance

    • Annual General Meeting More Less
      • Annual General Meeting More Less
        • AGM 2021
        • AGM 2020
        • AGM 2019
      • Nominating Committee
      • AGM address and minutes
      • Dividend and financial policy
      • Auditors
      • Articles of association
    • Committees More Less
      • Remuneration Committee
      • Audit Committee
      • Disclosure Committee
    • Board of Directors More Less
      • About the Board
      • Activities of the Board of Directors
      • Compensation to Board
    • Management More Less
      • About the management
      • Guidelines for executive remuneration
      • Management compensation More Less
        • Incentive plans
    • Insider shareholding
    • Corporate Governance reports More Less
      • Internal control
    Participants at the AGM

    Annual General Meeting

  • Sustainability More Less

    Sustainability

    • Goals and progress
    • Our contribution to the UN SDGs More Less
      • UN SDGs aligned with our focus areas
      • UN SDGs beyond our focus areas
    • Strategy and organization
    • Materiality assessment More Less
      • Other topics outside our focus areas
      • Sustainable Tobacco Program
    • Value chain
    • Code of Conduct More Less
      • Supplier Code of Conduct
    • Focus areas More Less
      • Improve public health
      • Ensure ethical business practices
      • Reduce environmental impact
      • Human rights in our supply chain
      • Equal opportunity
    • Sustainability reporting
    • Sustainability FAQ
    • Sustainability contacts
  • Investors More Less

    Investors

    • The share More Less
      • Per share data
      • Shares outstanding
      • Share capital development
      • Share holdings More Less
        • Largest shareholders
      • Dividend information
      • Analysts and estimates
      • Indicies
    • Share split
    • Follow our journey
    • Calendar
    • Presentations More Less
      • Webcasts and audiocasts
    • Financial reports More Less
      • Interim reports
      • Annual reports More Less
        • Annual report 2021
    • Financial tables More Less
      • Income statement
      • Balance sheet
      • Cash flow analysis
      • By product segment More Less
        • Sales
        • Operating profit
        • Operating margin
      • Key ratios
      • Statement of comprehensive income
    • Debt information More Less
      • Debt sources of financing
      • Debt programs
      • Outstanding bonds
      • Credit rating
      • Financial risks More Less
        • Sensitivity analysis
    • IR contacts
    • Information on cash offer announcement by PMI
  • Media More Less

    Media

    • Press releases and news
    • Images More Less
      • Swedish Match logotype
    • Videos
    • Pressroom
    • Media contacts
  • Snus and health More Less

    Snus and health

    • Our standpoint
    • The Swedish Experience
    • Research on snus
    • Smoking cessation
    • GOTHIATEK® More Less
      • GOTHIATEK® standard
    • Snus and the Swedish Food Act
    • Nicotine More Less
      • Nicotine labeling of Swedish Match products
      • Snus, nicotine and nicotine addiction
    • Tobacco use More Less
      • Tobacco use in figures
    GOTHIATEK® Quality standard

    Swedish Match quality standard

  • Career More Less

    Career

    • Employee strategy
    • Our culture More Less
      • Employee surveys
    • Work environment
    • Diversity and non-discrimination
    • Competence development
    • Compensation and benefits
    • What we do
    • Meet our employees
    • Vacant positions
    • Student
    • HR contacts

    Vacant positions

Our websites
Language:
  • English
  • svenska
Media
  • Press releases and news
  • Images
  • Videos
  • Pressroom
  • Media contacts
Swedish Match's logo
News; Aug 15, 2002 CET

Record earnings per share

The favorable start to 2002 also continued during the second quarter. During the first half of 2002, Swedish Match’s sales increased by 4 percent to 6,850 MSEK. “The success is primarily attributable to solid organic growth, in which snuff sales reached record levels during the second quarter,” commented Sven Hindrikes, the Group’s CFO. Operating income for the period grew by a continued positive 19 percent to 1,245 MSEK. The earnings per share climbed 23 percent to 2.07 SEK, which was also a re

The results for the first six months of 2002 were largely in line with our expectations and we are more than satisfied. The continuous improvements in operating margins for snuff and cigars are particularly gratifying, since these are our largest product areas, says Sven Hindrikes. Other product groups reported positive margins for the past six months, except for pipe tobacco. “In the case of pipe tobacco, the decline is particularly attributable to the situation in South Africa, with raised tobacco taxes and the low value of the currency. Matches and lighters continue their secure trend above the long-term target profit margin of 10 percent.

FOR AN INTERNATIONALLY ACTIVE group like Swedish Match, currency fluctuations are always a factor that affects earnings, which is also the case for this six-month period. The strengthening of the Swedish krona, particularly against the US dollar, resulted in a fall in sales during the period of 1 percentage point compared with the year-earlier period, according to Sven Hindrikes. Swedish Match continues to reinforce its position as the only global manufacturer of snuff. Sales in both of its leading markets - Northern Europe and the US - increased strongly in volume, thereby representing the largest contribution to organic growth during the period. In the US, which is the world’s largest single snuff market, the rate of volume increase was 10 percent, which means that the market share grew from 8.1 percent in 2001 to 9.3 percent in total. In Northern Europe, volumes increased by 6 percent. Sales for the entire product area grew by 18 percent.

OPERATING INCOME FOR SNUFF operations as a whole rose by 34 percent to 603 MSEK and the operating margin was 43.6 percent, compared with 38.4 percent during the year-earlier period. The positive result is the outcome of a combination of increased sales, price increases and somewhat reduced marketing costs, according to Sven Hindrikes. Swedish Match also increased its sales of chewing tobacco, which is mainly sold in the North American market, by 5 percent, although the market in general is declining in terms of volume by approximately 4 percent per year. Operating income rose by 12 percent to 211 MSEK on total sales of 711 MSEK.

Cigars, the Group’s other large product area, noted largely unchanged sales compared with the year-earlier period. Sales during the first six months amounted to 1,649 MSEK (1,642). The sales increases in Europe offset a somewhat reduced sales volume in the US market.

However, both the operating income and the operating margin improved in a satisfactory manner during the period. Operating income grew by 20 percent to 271 MSEK, which resulted in an operating margin of 16.4 percent, compared with 13.7 percent for the first six months of 2001. The factors behind the improvement are mainly continued consolidation and efficiency enhancement of operations, which led to substantial cost savings.

MATCH OPERATIONS CONTINUE to be a source of satisfaction following the restructuring and efficiency program of the past year and operating income increased by 41 percent during the period to 124 MSEK. Sales grew by 6 percent to 881 MSEK and the operating margin improved to 14.1 percent. Sales of lighters, on the other hand, declined somewhat compared with to the preceding year, to 370 MSEK. The operating margin for operations amounted 11.6 percent.

In conclusion, this means that, during the past six months, there has been a considerable increase in the earnings per share, to a record level of 2.07 SEK, which is in line with the Group management’s focus on increased shareholder value.

“THE RESULTS FROM THE FIRST six months show that we are wellequipped to implement the goals we established for the year, which are consolidation of operations and improved operating margins, as well as investment in organic growth,” says Sven Hindrikes.

Emmett Harrison

Emmett Harrison

Senior Vice President Investor Relations
Email
+46-70-9380173
Download vcard

Related documents

  • Presentations
  • Our company
  • CEO comment
  • Annual General Meeting

Share

Share Facebook Share Twitter Share Linkedin

Share this page by email

Incorrect email
Incorrect email
Home / Media / Press releases and news /

Contact us

  • IR contacts
  • Media contacts
  • Sustainability contacts
  • HR contacts
  • Consumer contact
  • Web contact

Find us

  • Headquarters
  • Sales office
  • Factory
  • Distribution
  • Store
  • Research & Development
  • All addresses
Map

Corporate headquarters

Phone: +46 10 13 93 000

Sveavägen 44
SE-118 85 Stockholm

Corporate headquarters
Swedish Match

Swedish Match AB
SE-118 85 Stockholm

Phone +46 10 13 93 000
Corporate reg no. 556015-0756
contactus@swedishmatch.com

About the website

  • Sitemap
  • Site policy
  • Privacy notice
  • Information about cookies
  • Legal responsibility

Find information

  • Search
  • FAQ
  • Archive
  • Glossary

Subscription services

  • Subscription service
  • RSS

Follow us

Facebook Twitter Linkedin