In terms of its cigar business, Swedish Match experienced increased demand for both its HTL and natural leaf cigar products. It also benefited from an increase in its White Owl list price that took effect in January 2021.
“We note that while it is likely that COVID-19 effects have increased consumer usage occasions in the U.S., underlying demand is nonetheless very strong. With our broad portfolio, we are well positioned to easily adapt to changes in consumer preferences and regulatory dynamics,” Dahlgren wrote in his report.
In terms of sales during the first quarter, Swedish Match reported that sales from product segments increased by 23 percent, with all product segments having contributed to the growth. Out of all of those segments, however, it was smoke free products that were the largest contributor to Swedish Match’s quarter one sales growth. Overall operating profit from product segments increased by 26 percent. In local currencies, operating profit from product segments was up by 40 percent. Profit after tax amounted to 1,780 MSEK for the first quarter. In terms of the impact of COVID-19 on its business during the first quarter of 2021, Swedish Match saw no major operational disruptions brought on by the pandemic and believes the pandemic could have helped its financial performance due to increased consumer demand.