Cigar volume at Swedish Match rose 29 per cent in the third quarter, which the snus maker said was the key driver behind an 11 per cent hike in group operating profit to SEK 1.1 million (EUR 111,000).

Operating profit in the snus and moist-snuff segment rose 4 per cent to SEK 577 million, representing more than half the group total. Sales rose both in Scandinavia and in the US. Snus volume, however, contracted 1 per cent to 60.5 million cans while moist-snuff volume in the US rose 3 per cent to 35.9 million cans.
“Both sales and operating profit for cigars are expected to be lower in the fourth quarter than in the third quarter due to the timing of shipments and user fees to the FDA (US Food and Drug Administration) being imposed beginning October 1, 2016,” Swedish Match said. “These volume-based user fees are expected to amount to approximately USD 2 million in the fourth quarter.”