Swedish Match Interim Report January - March 2022

Rhea-AI Summary

Swedish Match reported a 10% increase in group sales for Q1 2022, totaling 4,892 MSEK, attributed to strong smokefree product demand, particularly ZYN nicotine pouches in the US. However, operating profit from product segments saw a slight 1% increase to 2,115 MSEK, with a 7% decrease in local currencies. Notably, profit after tax fell to 1,493 MSEK, down from 1,780 MSEK. The cigar and lights segments faced challenges, with sales and profits declining in cigars due to lower volumes and increased costs.

Positive

• Sales increased by 10% to 4,892 MSEK.
• Strong momentum in the US smokefree business, particularly with ZYN nicotine pouches.
• Cigar market share increased sequentially relative to Q4 2021.
• Robust performance in the Lights segment with good operating profit.

Negative

• Operating profit from product segments increased by only 1%, decreased by 7% in local currencies.
• Profit after tax decreased to 1,493 MSEK from 1,780 MSEK.
• Cigar segment sales and operating profit declined due to lower volumes and higher costs.

STOCKHOLM, May 11, 2022 /PRNewswire/ --

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 segments¹⁾ 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 share²⁾ 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 share³⁾ 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. 

For the full report: www.swedishmatch.com/Investors/Financial-reports/Interim-reports/

Swedish Match telephone conference
A telephone conference will be held today, Wednesday, May 11 at 2:00 p.m. (CET), (1:00 p.m. UK time). At this time we will review and comment on the results. Participants will include Lars Dahlgren, Anders Larsson, and Emmett Harrison.

Listen to the telephone conference: www.swedishmatch.com/Investors/Presentations/Webcasts-and-audiocasts/

Telephone conference presentation: www.swedishmatch.com/Investors/Presentations/

Contacts:

Lars Dahlgren, President and Chief Executive Officer
Phone +46 8 658 0441

Anders Larsson, Chief Financial Officer and Senior Vice President Group Finance
Phone +46 10 139 3006

Emmett Harrison, Senior Vice President Investor Relations
Phone +46 70 938 0173

Johan Levén, Investor Relations and Business Analysis Manager
Phone +46 70 207 2116

This information is information that Swedish Match AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08.15 a.m. CET on May 11, 2022.

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/swedish-match/r/interim-report-january---march-2022,c3564642

The following files are available for download:

https://mb.cision.com/Main/2004/3564642/1577857.pdf

Swedish Match Q1 2022 ENG

View original content:https://www.prnewswire.com/news-releases/swedish-match-interim-report-january--march-2022-301544698.html

SOURCE Swedish Match

FAQ

What were the sales figures for Swedish Match in Q1 2022?

Swedish Match reported sales of 4,892 MSEK in Q1 2022, a 10% increase compared to the prior year.

How did the profit after tax change for Swedish Match in Q1 2022?

The profit after tax for Q1 2022 was 1,493 MSEK, down from 1,780 MSEK in the previous year.

What is the performance of the ZYN nicotine pouches in the US market?

ZYN nicotine pouches continued to gain market share in the US, demonstrating solid sales and profit growth.

How did Swedish Match's operating profit perform in Q1 2022?

The operating profit from product segments increased by 1% to 2,115 MSEK, but decreased by 7% in local currencies.

What challenges did the cigar segment face in Q1 2022?

The cigar segment experienced a decline in sales and operating profit due to lower volumes and increased production costs.