Financial strategy
Swedish Match’s operations are characterized by strong cash flows. The financial strategy is based on capital efficiency, and continually optimizing the balance sheet, with due consideration for flexibility and stability requirements.
Net debt
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’ goal is to maintain an investment grade rating from Standard & Poor’s and Moody’s.
Shareholder distribution
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. Excess funds shall be returned to shareholders through dividends and share repurchases.
Transfer of capital to shareholders
| Ordinary dividend | Repurchase of own shares | Special dividend | |
|---|---|---|---|
| 2015 | 1,464 | 1,854 | 0 |
| 2016 | 1,506 | 1,249 | 4,016 |
| 2017 | 1,545 | 2,590 | 1,363 |
| 2018 | 1,613 | 2,512 | 1,298 |
| 2019 | 1,777 | 2,989 | 0 |
