In Scandinavia, Swedish Match's snus and snuff volume sales during the first three months of this year were up by six per cent on those of the January-March period of last year, according to the company's interim management statement.
However, adjusted for the timing of the Easter holidays, the volume increase was estimated to be three per cent.
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Snus and snuff volume sales in the US, meanwhile, were up by 16 per cent, but, taking into account stock adjustments made at the time of the federal excise tax increase last year, the growth is estimated to have been about three per cent.
"During the first quarter we saw continued strong performance in the Scandinavian snus markets, with solid volume and sales growth in Sweden and Norway as well as in Travel Retail," said CEO, Lars Dahlgren.
"The investments for growth in our smoke-free business continued. In Norway, we rolled out Lab Series 01/02 with great success, having already reached more than two per cent market share.
"In Sweden, we added a line extension of our Onico brand. In the US, we introduced Timber Wolf packs in a new peach variety while, on the marketing front, we engaged in extensive brand awareness activities for our Red Man and Longhorn brands of moist snuff, and for our General snus.
"We were active on and near the ski slopes helping US consumers learn more about General, the authentic Swedish snus. From February through June, we are sponsoring Red Man and Longhorn branded vehicles on the NASCAR circuit in the US.
"For cigars, we saw some encouraging developments, especially for our US mass market cigar business, as sales and volumes rose, with volume up by more than 20 per cent year on year when backing out last year's hoarding effects.
"In Europe, the market was basically flat, but Swedish Match gained some market share in the important French, Dutch, and Spanish markets.
"The US premium cigar market continues to be rather soft, but our business through the mail order and Internet with Cigars International is continuing to do well.
"During the quarter we announced a letter of intent to create a new company, with a focus on cigars, combining the cigar businesses of Swedish Match (excluding US mass market cigars and our minority stake in Arnold André) with the cigar, pipe tobacco, and fine cut tobacco businesses of Scandinavian Tobacco Group.
"In February we received the necessary bondholder consent and, after the close of the quarter, a final agreement was announced on April 26.
"With this agreement with STG, and with our joint venture with PMI for snus outside of Scandinavia and the US, we are better positioned to face the opportunities that lie ahead."
Overall, Swedish Match's sales for the first quarter of this year were SEK3,282 million, down from SEK3,387 million during the January-March period of 2009, though, in local currencies, sales were up by three per cent.
Operating profit was down from SEK794 million to SEK755 million, while operating profit including depreciation and amortization on assets held for sale was down from SEK794 million to SEK728 million.
In local currencies, operating profit increased by one per cent, while the adjusted operating profit decreased by three per cent.
Basic earnings per share were up from SEK2.11 to SEK2.26. Enditem
