SM’s sales up in first quarter

Sales at Swedish Match during the first quarter to the end of March, at SEK3,557 million, were increased by six percent on those of the first quarter of 2015, SEK3,368 million, the company reported on Wednesday. In local currencies, sales increased by seven percent.

Operating profit from product areas (excluding larger one-off items and SM’s share of the net profit of the Scandinavian Tobacco Group [STG]) increased by eight percent, from SEK866 million to SEK939 million, and in local currencies by 10 percent.

Growth of sales and operating profit from product areas was said to have been positively affected by lower trade destocking in Scandinavia in 2016 than in 2015.

Operating profit (including larger one-off items and SM’s share of the net profit of the STG) was up from SEK1,014 million to SEK1,711 million. The larger one-off items included SEK704 million relating to the capital gains of the partial divestment of STG and the divestment of distribution center real estate. STG was listed on Nasdaq Copenhagen during the first quarter and, in connection with the listing, SM reduced its ownership in STG from 49.0 percent to 31.1 percent.

Earnings per share were up from SEK3.68 to SEK7.44, while adjusted earnings per share were increased by nine percent from SEK3.40 to SEK3.71.