Lights
Swedish Match is a leading manufacturer and distributor of matches and lighters with a strong brand portfolio across the globe. Lights include matches, lighters and complementary products.
Production of matches takes place in Sweden and Brazil. Lighters are produced in the Philippines, the Netherlands, and Brazil.
The Company also offers a portfolio of complementary products, including disposable razors, batteries, light bulbs, and tooth picks under the Fiat Lux brand.
| Key data, MSEK | 2017 | 2016 | 2015 |
|---|---|---|---|
| Sales | 1,291 | 1,314 | 1,295 |
| Operating profit | 211 | 219 | 190 |
| Operating margin, % | 16.4 | 16.7 | 14.7 |
| Swedish Match shipment volumes, worldwide | 2017 | 2016 | Change, % |
|---|---|---|---|
| Matches, billion sticks | 65.0 | 72.0 | -10 |
| Lighters, million units | 368.1 | 399.2 | -8 |
Share of Group total:
Sales: 8%
Operating profit: 5%
Main brands:
Matches: Solstickan, Swan Vestas, Tres Estrellas, Fiat Lux, Redheads
Lighters: Cricket
Main markets: Latin America, Asia Pacific, Europe
Production units: Sweden, Brazil, the Philippines, the Netherlands
Strategy
With its portfolio of well-known brands and strong market positions, Swedish Match works for continuous operational excellence in the Lights product area. The Company is committed to maintaining and improving its already efficient manufacturing operations as well as capitalizing on its market positions. With its high and demanding quality standards, fast and flexible production, and ongoing customer feedback, Swedish Match is able to provide consumers and customers with the quality products they demand at attractive prices. The Company will work to maintain sales and profitability for both matches and lighters by tightly controlling costs and managing its price/mix and by growing its overall presence for its premium disposable lighters and utility lighters as well as maintaining high quality standards for matches. Swedish Match will also focus on further developing its business for complementary products sold mainly on the Brazilian market.
Financial development
(Note: Comments below refer to the comparison between full year 2017 vs. full year 2016).
Sales declined by 2 percent for the product area but increased for both complementary products and matches. Lighter sales and operating profit declined on lower volumes. Sales for matches increased somewhat as lower volumes were compensated by positive pricing, mix and currency effects but operating profit was down on higher production costs. Operating profit for complementary products increased on higher sales and favorable costing.
See financial tables by product area for more financial information.
