Record First Quarter 2020 Reported by Swedish Match

Swedish Match is reporting a positive first quarter, mostly led by a growing smokeless category and products like ZYN. In a recent recap of the first three months of 2020, Swedish Match reported that sales from product segments including smokeless, cigars and lights increased by 30 percent in the first quarter. Operating profit from product segments increased by 30 percent for the first quarter, and earnings per share increased by 30 percent in the first quarter. While net effect on revenue and results from the COVID-19 impacts were so far positive in the first quarter of the year, Swedish Match is expecting to see some negative impact beginning to show in the second quarter.

ZYN, a nicotine pouch product, was credited as having provided the company with much of its success in the first three months of 2020. The company reports that ZYN is now available in approximately 80,000 stores in the U.S. and average sales per store continues to increase over time.
“Like many businesses, we are experiencing commercial shifts–both positive and negative–which are likely to influence reported results for the coming quarters. However, it is important to note that underlying consumer demand for smoke free products remains strong, and distribution and most retail channels that provide consumers access to our products have, to this points, been largely unaffected by the COVID-19 pandemic,” commented Lars Dahlgren, CEO of Swedish Match.

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