Full Year Report January – December 2017
Highlights from the fourth quarter and full year
- In local currencies, sales increased by 6 percent for the fourth quarter and by 3 percent for the full year. Reported sales increased by 2 percent to 4,044 MSEK (3,957) for the fourth quarter and by 4 percent to 16,101 MSEK (15,551) for the full year.
- In local currencies, operating profit from product areas1) increased by 15 percent for the fourth quarter and by 5 percent for the full year. Reported operating profit from product areas increased by 9 percent to 1,044 MSEK (954) for the fourth quarter and by 6 percent to 4,218 MSEK (3,990) for the full year.
- Operating profit amounted to 1,179 MSEK (954) for the fourth quarter and to 4,591 MSEK (6,420) for the full year2).
- Profit after tax amounted to 904 MSEK (662) for the fourth quarter and to 3,400 MSEK (5,123) for the full year.
- Earnings per share amounted to 5.10 SEK (3.61) for the fourth quarter and to 18.88 SEK (27.38) for the full year. Earnings per share excluding both larger one-time items, dividends from STG in 2017 and share of net profit in STG in 2016 increased by 17 percent to 4.24 SEK (3.61) for the fourth quarter and by 14 percent to 16.39 SEK (14.39) for the full year.
- In November, Swedish Match completed the divestment of its remaining shareholding in STG.
- During 2017, Swedish Match distributed 5,498 MSEK to its shareholders in the form of an ordinary dividend, a special dividend and share repurchases.
- The Board proposes a dividend of 16.60 SEK per share consisting of an increased ordinary dividend of 9.20 SEK (8.50) and a special dividend of 7.40 SEK, following the final sale of shares in STG.
- As of January 1, 2018, Swedish Match will apply the new revenue recognition standard, IFRS 15. While not impacting profit, this implementation will have a significant effect on the recognition of net sales. Further information is given in Note 1, Accounting principles.
- The outlook for 2018 can be found on page 13.
1) Operating profit for Swedish Match product areas, which excludes larger one-time items and share of net profit in STG in 2016.
2) The full year 2017 includes larger one-time items of 373 MSEK relating to capital gains from the sale of STG shares and from the sale of a parcel of land as well as an income from a defined benefit plan amendment. Previous full year included larger one-time items of 2,254 MSEK relating to capital gains from the partial divestments of STG and an unrealized gain from revaluing Swedish Match’s then remaining shareholding in STG to market value as well as a capital gain from the sale of a distribution center. The fourth quarter of 2017 includes larger one-time items of 135 MSEK relating to a capital gain from the sale of STG shares and an income from a defined benefit plan amendment.
For the full report: www.swedishmatch.com/Investors/Financial-reports/Interim-reports/
Swedish Match telephone conference
A telephone conference will be held today, Wednesday, February 14 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, Marlene Forsell, and Emmett Harrison.
Listen to the telephone conference: www.swedishmatch.com/Investors/Presentations/Webcasts-and-audiocasts/
Telephone conference presentation: www.swedishmatch.com/Investors/Presentations/
Lars Dahlgren, President and Chief Executive Officer
Office +46 8 658 0441
Marlene Forsell, Senior Vice President and Chief Financial Officer
Office +46 70 864 9244
Emmett Harrison, Senior Vice President Investor Relations and Corporate Sustainability
Office +46 8 658 0173
Richard Flaherty, President US Division, US Investor Relations contact
Office +1 804 787 5130
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 February 14, 2018.
Swedish Match develops, manufactures, and sells quality products with market-leading brands. Swedish Match’s product areas are Snus and moist snuff, Other tobacco products (cigars and chewing tobacco), Lights (matches, lighters, and complementary products), and Other operations. Production is located in six countries, with sales concentrated in Scandinavia and the US. The Swedish Match share is listed on Nasdaq Stockholm (SWMA).
Swedish Match’s vision is a world without cigarettes. Some of its well-known brands include: General, Longhorn, White Owl, Red Man, Fiat Lux, and Cricket.
Swedish Match AB (publ), SE-118 85 Stockholm, Sweden
Visiting address: Sveavägen 44, 8th Floor. Telephone: +46 8 658 0200
Corporate Identity Number: 556015-0756