Interim Report January – September 2021
Highlights for the third quarter
- Record sales with year-on-year revenue growth across product segments, despite comparing to a prior year quarter with elevated demand for certain product lines.
- In local currencies, sales increased by 10 percent for the third quarter. Reported sales increased by 9 percent to 4,778 MSEK (4,400).
- Record operating profit from product segments, in spite of continued ramp-up in spending behind growth opportunities for smokefree products.
- In local currencies, operating profit from product segments1) increased by 2 percent for the third quarter. Reported operating profit from product segments increased by 1 percent to 2,099 MSEK (2,075).
- For the Smokefree product segment, continued momentum for ZYN nicotine pouches in the US and solid performance in Scandinavia drove increased sales and operating profit.
- For the Cigars product segment, increased sales of natural leaf varieties outpaced declines for HTL cigars while operating profit in local currency was virtually flat principally reflecting higher production costs.
- For the Lights product segment, robust performance for lighters drove enhanced earnings.
- Operating profit amounted to 2,075 MSEK (2,048) for the third quarter.
- Profit after tax for the third quarter amounted to 1,540 MSEK (1,222). Profit after tax for the third quarter of the prior year included a charge of 286 MSEK following an adverse ruling in a tax case.
- Earnings per share increased by 30 percent to 0.99 SEK (0.76) for the third quarter. Adjusted earnings per share increased by 5 percent to 0.99 SEK (0.94).2)
- On September 14, Swedish Match announced its intention to spin off its US cigar business to shareholders. Subject to various conditions, the separation is expected to be completed during the second half of 2022, at the earliest. For more details, see the September 14 press release.
1) Excludes Other operations and larger one-time items.
2) In May 2021, a share split (10:1) was made. Historical share data in this report has been restated in accordance with IAS 33.
For the full report: www.swedishmatch.com/Investors/Financial-reports/Interim-reports/
Swedish Match telephone conference
A telephone conference will be held today, Wednesday, October 27 at 1:00 p.m. (CET), (12:00 p.m. UK time). At this time we will review and comment on the results. Participants will include Lars Dahlgren, Anders Larsson, and Emmett Harrison.
Listen to the telephone conference: www.swedishmatch.com/Investors/Presentations/Webcasts-and-audiocasts/
Telephone conference presentation: www.swedishmatch.com/Investors/Presentations/
Lars Dahlgren, President and Chief Executive Officer
Phone +46 8 658 0441
Anders Larsson, Chief Financial Officer and Senior Vice President Group Finance
Phone +46 10 139 3006
Emmett Harrison, Senior Vice President Investor Relations
Phone +46 70 938 0173
This information is information that Swedish Match AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08.15 a.m. CET on October 27, 2021.