Financial policy

The Swedish Match operations are characterized by strong cash flows. The financial strategy is based on the basic principles of not utilizing more capital than necessary, and continually optimizing the balance sheet, with due consideration of flexibility and stability requirements.

Financial target and position

The Board of Directors has determined that the Group will strive to maintain a net debt that does not exceed 3 times EBITA.

The actual level of net debt will be assessed against:

  • anticipated future profitability and cash flow
  • investment and expansion plans
  • acquisition opportunities
  • development of interest rates and credit markets

The Board of Directors’ long term goal is to maintain a Standard & Poor’s BBB and a Moody’s Baa2 long term rating.

For financial outcome, see Key ratios.

Dividend policy

Excess funds shall be returned to shareholders through dividends and share repurchases. Swedish Match has the ambition to continuously grow dividend per share with a payout ratio normally within 40–60 percent of the earnings per share, subject to adjustments for larger one-time items.

Read more on the page Dividend information.