Revised outlook for US cigars
In the January-June half year 2013 report, the following statement was included in the outlook section:
For the full year of 2013 we anticipate higher sales and operating profit for US cigars, driven by strong volume growth. However, due to pricing and promotional activities now planned in light of increased competition, operating profit growth is more uncertain and is expected to be modest.
During recent months, competitive activities for US cigars have intensified further, which has resulted in lower than expected volumes and operating profit for our US mass market cigar business in the third quarter.
Given this development, we now anticipate operating profit for the Other tobacco products segment in the third quarter to be in the range of 50-60 MSEK below the third quarter of the prior year. As a result 2013 full year operating profit for Other tobacco products will also be below the level of 2012, driven by a decline in our mass market cigar business.
For further information, please contact:
Emmett Harrison, Senior Vice President Corporate Communications and Sustainability
Office +46 8 658 0173