Profits on the march at Swedish Match

Profits on the march at Swedish Match
Tobacco company Swedish Match reported pre-tax profits of 791 million kronor ($100 million) for the second quarter on Friday, well above analysts’ expectations.

“In the second quarter we delivered the strongest sales performance and, excluding one-time items, highest operating profit ever,” said CEO Lars Dahlgren in a statement.

According to a Reuters survey, analysts had expected the company’s profits to land at 705 million kronor.

The results compare favourably with the 621 million kronor Swedish Match reported for the same period last year.

The company reported sales increases for all its product lines, with sales of snus (wet snuff) products increasing across Scandinavia, and a 21 percent increase in US snuff sales.

Turnover rose from 3.16 billion kronor to 3.67 billion kronor.

“For the full year Swedish Match expects both the snuff market in Scandinavia and in the US to grow. For the second half of the year, Swedish Match expects Group sales and operating profit excluding larger one-time items to exceed prior year,” the company said in a statement.

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