Entering text into the input field will update the search result below

Swedish Match: Q3 Nicotine Pouch Strength Hidden By Post-COVID Weakness In Older Products

Nov. 02, 2021 12:33 PM ETSwedish Match AB (SWMAF), SWMAYBTI, MO32 Comments
Librarian Capital profile picture
Librarian Capital


  • Swedish Match stock has lost 7.9% in 4 days since Q3 2021 results, after disappointing group EBIT and U.S. Smokefree sales figures.
  • ZYN nicotine pouches grew U.S. volume by 8.7% since Q2 and kept a 64% category share; but investors fear this was done with discounts.
  • Instead, we believe weak U.S. Smokefree sales and EBIT were due to older products like moist snuff losing their volume boost from COVID.
  • Weak U.S. Cigars EBIT was likewise due to a tough pandemic-year comparable and COVID-related external supply chain issues.
  • Swedish Match's growth engine is intact. With shares at SEK 74.58, we expect a total return of 69% (18.7% annualized) by 2024. Buy.

word stop made by snus nicotine tobacco product. no smoking concept.

Andrii Atanov/iStock via Getty Images


We review our investment case on Swedish Match AB (OTCPK:SWMAY) (referred here as "SWMA") after Q3 2021 results were released last Wednesday (October 27). Investors have reacted negatively, with SWMA shares falling 4.9% on the day of the

This article was written by

Librarian Capital profile picture
We are no longer publishing new content on Seeking Alpha. To get in touch, use the website or Twitter account on our profile, as comments and messages on this site are no longer checked regularly. Articles published under our name on Seeking Alpha were personal opinions, based on information believed to be correct at the time of writing, but not updated. Librarian Capital is an independent third party that published articles on Seeking Alpha on an ad hoc basis, and we have had no contractual relationship with Seeking Alpha beyond the terms and conditions under which those articles were published.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SWMA, MO,BTI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.