[ad_1]
The snus giant tracks both the hopes of the pros and its own result over the corresponding period last year. Watch this!
Swedish Match reports an operating profit for the third quarter that exceeds the expectations of both analysts and is better than the same period in 2019. Sales also increased.
Sales increased 14.9 percent to SEK 4.4 billion (3,829). The result can be compared with the Factset analyst consensus, which was 4,088.
Operating profit was SEK 2,019 million (1,586), and is expected to be SEK 1,731 million. The operating margin was 45.9 percent (41.4).
Profit before tax was 1,914 million SEK (1,526), and was expected to be 1,653 million SEK.
Profit after tax was 1,193 million SEK (1,180) and was expected to be 1,285 million SEK.
Earnings per share ended at SEK 7.44 (7.04).
This is how the CEO explains success
Swedish match vd Lars Dahlgren writes in a comment that earnings growth can be primarily attributed to Zyn’s strong performance in the US.
“In the US, we continued to take most of the growth in the nicotine portion market with Zyn and the in-store turnover rate continued to increase, despite an increased number of outlets and a strategy of much more aggressive campaign from our competitors, “says Dahlgren.
During the quarter, the company also saw a significant increase in operating profit for the US cigar business and the smoke-free business in Scandinavia, Dahlgren says.
Pass multiple milestones
The Swedish party manager also notes that the quarter was one in which several milestones were exceeded. This includes record results for the company’s product segment, a new “all-time high” for Zyn deliveries and the largest cigar delivery volumes in history during the same quarter.
Based on the outlook, the company will not make any changes compared to the previous quarter, with the exception of the underlying corporate tax in the United States, which is now expected to be higher.
“This is a consequence of the increase in the contribution relative to the profit of our operations in the United States, which is taxed at an effective tax rate higher than the average tax rate for the Group,” the company writes.
[ad_2]
