Swedish Match: Interim Report January - March 2022

Highlights for the first quarter

• Sales and operating profit from product segments increased on the back of continued strong momentum for the US smokefree business.
• Group sales increased by 10 percent to 4,892 MSEK (4,455). In local currencies, sales increased by 2 percent for the first quarter.
• Operating profit from product segments increased by 1 percent to 2,115 MSEK (2,092). In local currencies, operating profit from product segments[1)] decreased by 7 percent for the first quarter.
• Within the Smokefree segment, ZYN nicotine pouches in the US continued to gain market shares on a sequential basis and demonstrated solid sales and profit growth. In Scandinavia, sales grew strongly on an underlying basis, while operating profit declined reflecting higher market investments and an unusually high result in the prior year period.
• For the Cigars product segment, sales and operating profit declined on lower volumes and higher production costs when comparing to the exceptionally strong first quarter of the prior year. Swedish Match increased its cigar market share[2)] sequentially relative to the fourth quarter of 2021.
• For the Lights product segment, impressive performance for matches drove robust top-line development. Solid operating profit despite steep price increases on input materials.
• Group operating profit amounted to 2,024 MSEK (2,354). The prior year period included a settlement income of 300 MSEK.
• Profit after tax amounted to 1,493 MSEK (1,780).
• Adjusted earnings per share[3)] increased to 0.98 SEK (0.97). Earnings per share for the quarter decreased by 13 percent to 0.98 SEK (1.12) with the after-tax effect of the settlement income in the prior year period amounting to 0.15 SEK per share.

1) Excludes Other operations and larger one-time items. 
2) Based on MSA distributor shipments: Mass market cigars (excluding little cigars) in volume terms.
3) Excludes larger one-time items net of tax.