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

Swedish Match
SWMA May 23, 2022
12:30 PM CET
+ 0.0 % 101.50 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
    • Value chain
    • 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

    • Sustainability at Swedish Match More Less
      • Materiality assessment
      • Other topics outside our focus areas
      • Our contribution to the UN SDGs More Less
        • UN SDGs aligned with our focus areas
        • UN SDGs beyond our focus areas
      • Sustainability organization
    • Code of Conduct More Less
      • Group Principles on Communication
      • Group Principles on Environmental Management
      • Supplier Code of Conduct
    • Sustainable Tobacco Program
    • Improve public health
    • Ensure ethical business practices
    • Reduce environmental impact
    • Human rights in our supply chain
    • Equal opportunity
    • Sustainability reporting More Less
      • Sustainability reporting archive
    • 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
  • 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
Our business
  • Smokefree
  • Cigars
  • Lights
  • Value chain
  • Risk management
  • Outlook and risk factors

Outlook and risk factors

Full year 2022 Outlook 

With its vision of A world without cigarettes, Swedish Match’s core business is to provide consumers with enjoyable alternatives that are both satisfying and dramatically safer than smoking. Swedish Match expects significant growth in consumer demand for safer alternatives to cigarettes. Swedish Match further expects that nicotine pouches as a category will continue to evolve as the number one choice among even more consumers seeking satisfactory experiences in the reduced risk product landscape. With the highly attractive prospects of the nicotine pouch category, Swedish Match anticipates that competitive activity will remain intense.

In the US, in Scandinavia, as well as in Other markets, Swedish Match plans to further increase investments during 2022 to capitalize on the growth opportunities, especially for nicotine pouches. Within Other markets, Swedish Match notes significant opportunities in existing as well as in certain new markets.

Capital expenditures are expected to be of a similar magnitude as in 2021. The effective underlying corporate tax rate in 2022, excluding associated companies, is expected to be around 23 percent and is not expected to be meaningfully impacted by the planned cigar separation.

The Company remains committed to returning cash not needed in operations to shareholders.

Effects from the coronavirus (COVID-19)

While longer-term effects from the pandemic are uncertain, the negative commercial, operational and financial consequences to Swedish Match have thus far been limited. Just as in the previous year, the Scandinavian smokefree business has likely benefitted financially from favorable channel mix effects that have been brought on by COVID-19 restrictions related to travel. For Cigars, since the on-set of the pandemic, consumer demand is likely to have been elevated as a consequence of changed consumption patterns. However, while it is challenging to identify and quantify any such potential effects, Swedish Match has faced production constraints in its cigar operations, partly as a consequence of the COVID-19 situation, which has led to an inability to fully meet demand. Swedish Match, like many other companies, has experienced higher costs and some difficulties in sourcing certain input materials. These challenges in relation to input materials may have been caused, at least to some extent, by direct or indirect consequences of the pandemic.

No material governmental subsidies or concessions related to COVID-19 have been sought or received by Swedish Match.

Swedish Match is closely monitoring the current situation including governmental guidelines and advice from public health authorities in every country where we operate. We continue to proactively take the steps that we believe are appropriate to mitigate potential impacts to our employees, our customers and our business, as well as to society.

Risk factors

Swedish Match faces intense competition in all of its markets and for each of its products and such competition may increase in the future. To remain successful, the Group must develop products and brands that resonate with changing consumer trends, and price and promote its brands competitively. Restrictions on advertising and promotion may, however, make it more difficult to counteract any loss of consumer loyalty. Competitors may develop and promote new products which could be successful, and could thereby have an adverse effect on Swedish Match results of operations.

Swedish Match has substantial sales in the US, with products sourced from local US production facilities and imports from Swedish Match’s production facilities in the Dominican Republic and in Sweden. Swedish Match also has operations in Brazil, Denmark, Norway, the Philippines and EMU member countries. Consequently, changes in import duties as well as in exchange rates of the euro, Norwegian krone, Danish krone, Brazilian real, the Dominican peso and in particular the US dollar may adversely affect the Group’s results of operations, cash flow, financial condition or relative price competitiveness in the future. Such effects may occur both in local currencies and when such local currencies are translated into Swedish currency for purposes of financial reporting.

Regulatory developments and fiscal changes related to tobacco and other nicotine products, corporate income and other taxes, as well as to the marketing, sale and consumption of tobacco products and other products containing nicotine in the countries where the Group is operating may have an adverse effect on Swedish Match financial results.

For a further description of risk factors affecting Swedish Match, see the Effects from COVID-19 above as well as the Risk and risk management section in the Report of the Board of Directors in the Swedish Match annual report for 2021.

Source: Swedish Match Full Year Report 2021 and Swedish Match Annual report 2021.

Annual reports
Interim reports

Share

Share Facebook Share Twitter Share Linkedin

Share this page by email

Incorrect email
Incorrect email
Home / Our business / Outlook and risk factors
Page updated Mar 28, 2022

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