Swedish Match announces planned separation of its cigar business Swedish match announce plans to split its business with its Swedish firm's cigar
STOCKHOLM, Sept. 14, 2021 /PRNewswire/ -- -- September 14, 20, 21 - SHOCKHOM, Nov. 14 & RUTHHOUSE, Oct. Swedish Match today announced that it intends to separate its cigar business by a spin-off to shareholders and completely shut down the manufacturing of combustible tobacco products. Swedish Match has started preparations for a separation and subsequently / securing the pending listing on based on the major US securities exchange, with. The final decision on execution subject to various considerations. The separation will be finished at the earliest during the second half of 2022.
Swedish Match has been a pioneer in the transformation of its business model from combustible tobacco to specialized in cigarette manufacturing since 1999, and then with acquiring pipe tobacco, premium cigars and the non-US machine made In line with the societal trends, today's announcement of the planned separation of US cigars marks the next chapter of this transformation. Smokefree products such as nicotine pouches and snus are a key ingredient in In order to reshape the business as a corporation, the option to buy an independent company, without sacrificing the ability to acquire sanity and independence. As a separate company, the cigar industry can explore broader scope of growth opportunities and optimize its operational structure and capital structure.
The cigar industry has solid positions in the natural leaf and homogenized tobacco leaf (HTL) segments of the US mass market cigars category and holds the number two market position with approximately 23 percent of its market measured by number of sticks measured 1) Since 2015 volumes have grown at a compound annual rate of close to 10 percent from more than 1,2 billion sticks to more as much as 1,9 billion in 2020, driven by robust growth for natural leaf varieties. During the same period, revenues increased from 313 to 493 MUSD by close to 10 percent, while operating profit increased 54 percent to 195 MUS. In the first six months of 2021, compared to the same period of 2020, sales grew by 25 percent due to a better price and double-digit volume growth and operating profit increased by 44 percent.
There are iconic brands in the natural leaf cigar portfolio, such as natural cigars. Garcia and Vega are both Garcia, and Vegeta. ,. Game , and and he is a sane guy, for y h t et so on. 1882. , while its rumours are it its own. White Owls are white Owl's Owl. The brand of HTL cigars is recognized in the world for its quality and heritage. The broadest in the industry is its portfolio of non-flavored and flavored cigars. The business has a fast-growing manufacturing presence in both the US and the Dominican Republic.
Swedish Match operates its Smokefree and Lights product segments in addition to its cigar business. For the full year 2020, the Smokefree and Lights product segment reported combined revenues of 11 799 MSEK (10,115) and combined operating profit of 5 364 M SEK (4,235). Sales and operating profit for these segments combined grew by 21 and 32 percent for the full year 2020. In the first six months of 2021, the segments combined reported revenue of 6,404 MSEK (5,787) and operating profit of 3,062 MEK (2,574). In the six-month period, sales and profit for these segments combined increased by 20 and 30 percent, respectively. The strong momentum for nicotine pouches drove continued growth. In the US, the price of the purchase was less than $10 million. ZYN Unlike the traditional cigarettes, the brand of nicotine pouches is a clear market leader and has enjoyed remarkably strong growth, with volumes exceeding 140 million cans for the twelve-month period ending June 30th 2021.
Swedish Match announces that this announcement is a milestone for our aspirations to become an entirely smokefree organization with cleat leadership position in oral reduced risk products, including reducing risk. ZYN, Zyn, M. The largest oral brand in the US and the world is modern oral. The cigar industry continues to perform very well and is seeing positive industry dynamics, which we believe will make it a stand-alone company, with strong cash flow generation and attractive growth. The new cigar company can explore an existing scope of growth opportunities within its autonomous and focused strategic agenda and to establish effective and tailored operational and legal structures geared to long-term value creation. Since a market conditions influence the future of the stand-alone cigar business, its strong cash flow profile, may be capitalized at ten times higher leverage than Swedish Match historically has, thus creating the opportunity for Swedish match to use financing Swedish Match will continue to operate as a single company until the separation is complete. The company will remain in business as usual for our customers and employees."
Swedish match expects to conclude the intended separation in the second half of 2022, at the earliest. Swedish Match expects to provide commercial and administrative support to the new stand-alone entity during a transitional period. The completion of the intended separation, the resulting structures and other related considerations are subject to final board and shareholder approval
Goldman Sachs is acting as its exclusive financial advisor to Swedish Match on the intention to spin off its cigar business.
1. Based on MSA distributors shipments of mass market cigars (excluding small cigar) are shipped.
Lars Dahlgren, President and Chief Executive OfficerPhone +46 8 658 0441 + 46 8 8-658 441.
Anders Larsson, Chief Financial Officer and Senior Vice President Group FinancePhone +46 10 139 3006.
Emmett Harrison, Senior Vice President Investor RelationsPhone +46 70 938 0173________________
This information is information that Swedish Match AB (publ) is obliged to make public according to the EU Market Abuse Regulation. The information was submitted to publication by the agency of the referred person, the six-person meeting, which was at 6 p.m. CET on September 14, 2021.
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Swedish Match press release Sep 14, 2021 ENG
Swedish match, SOURCE Swedish Match.