Snus sales lift Swedish Match profits

Snus sales lift Swedish Match profits
Tobacco company Swedish Match reported pre-tax profits of 614 million kronor ($103 million) in the second quarter, beating analysts’ expectations.

The results represented a nearly 10 percent improvement on last year’s second quarter results of 563 million.

According to a survey by Reuters, analysts had forecast Swedish Match would post profits of 586 million kronor in the second quarter.

Overall sales came in at 3.28 billion kronor, up from the 3.09 billion kronor in sales recorded last year.

The popularity of snus played a major part in lifting profits at Swedish Match; sales of the wet tobacco popular among Swedes shot up 20 percent compared with a year ago.

Cigar sales figures also rose, but by a comparably modest 7 percent.

CEO Lars Dalhgren believes that both turnover and operating profits are going to beat 2007 results, primarily due to a “strong development” for snus.

“We expect that our Scandinavian snus operations will continue to show strong results during the remainder of the year and in the US we expect a continued increase in market share and volume,” Dahlgren said in a statement.