Swedish Match (SWMA SS) Sweden
Consumer Staples
Philip Morris International will accept all SWMA shares that have been tendered to it despite failing to achieve its 90% minimum stake threshold. PMI must still secure further shares in a voluntary transaction during a new offer period to achieve its goal of utilising compulsory purchases to acquire all remaining stakes in the Swedish company. After PMI raised its public offer in October, the total bid now amounts to SEK176bn ($15.8bn).
Edition: 148
- 11 November, 2022
Big Tobacco’s RRPs showed positive performance in 2021 with promising signs for the future
Consumer Staples
Philip-Morris Int. reported a positive performance of Iqos Iluma in Japan and Switzerland, with significant growth in its heated tobacco portfolio, especially in the Middle East, Africa, South and Southeast Asia. Likewise, Japan Tobacco will prioritise its heated tobacco portfolio by 2027, while British American Tobacco’s revenue from its new products category rose by 42.4%, boosted by higher modern oral products sales. Swedish Match’s sales increased by 11%, driven by the smoke-free product segment, with solid growth in the US and Scandinavia for nicotine pouches and plans to invest further throughout 2022.
Edition: 130
- 04 March, 2022
Swedish Match (SWMA SS) Sweden
Consumer Staples
A lollapalooza opportunity - where strong growth, pricing power, resilient market share and great allocation all come together. Post spin-off of the cigar business c.95% of EBIT will come from smoke free products, but it is the potential of the company’s ZYN pouch product in the US which Andrew Hollingworth is most excited about. His analysis looks to dispel investor concerns around rivals’ attempts to gain market share by undercutting ZYN's prices. Andrew has also built two models to look at what the future compounding of SWMA might look like - results in 12% and 19% annual returns over the next 7 years.
Edition: 128
- 04 February, 2022