Financial development

Sales for snuff during the year decreased 2 percent to 3,289 MSEK (3,363). Operating profit for the year declined by 15 percent to 1,366 MSEK (1,614).

In the Scandinavian market, Swedish Match sales declined by 4 percent, as improved pricing and strong growth in Norway and duty free sales offset sales declines in Sweden. Sales volumes declined by 9 percent in Scandinavia. In Sweden, volumes declined, impacted by a doubling of the weight based tax for snus. Volumes in Norway, as well as duty free sales, increased.

In the US, sales grew as the Company gained market share in a market that grew by more than 7 percent*. Swedish Match shipment volumes increased by 21 percent.

The operating margin was 42 percent for the year (48). The lower operating margin results from a combination of factors including lower volumes in the first part of the year in Scandinavia, a mix shift toward value price products, and higher expenses for marketing and product launches.

* Source: Swedish Match and industry estimates. ACNielsen estimates 2007 market growth of 10 percent.

 

Snuff, key data

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Table data
MSEK200720062005*
Sales3,2893,3633,131
Operating profit1,3661,6141,504
Operating margin, %424848

* Operating capital for 2005 has not been restated in accordance with the new definition of net debt and includes net pension liabilities.

 

Page updated May 9, 2008

SWMA Aug 28, 2008 2:22 PM CET 125.5 SEK -1.8% Down


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Swedish Match Corporate Headquarters SE-118 85 Stockholm
Phone: +46 8 658 0200
Fax: +46 8 658 3522
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