Swedish Match AB (publ) reported consolidated earnings results for the third quarter and consolidated and parent earnings results for the nine months ended September 30, 2018. For the quarter, on consolidated basis, the company reported sales of SEK 3,388 million against SEK 2,915 million for the same period a year ago. Currency translation positively affected the comparability of sales from product segments by SEK 183 million. In local currencies, sales from product segments increased 10% and were higher across all product segments. Operating profit was SEK 1,305 million against SEK 1,088 million for the same period a year ago. Currency translation has affected the comparison of the operating profit positively by SEK 73 million. Profit before income tax was SEK 1,232 million against SEK 997 million for the same period a year ago. Profit attributable to equity holders of the parent was SEK 959 million against SEK 753 million for the same period a year ago. Earnings per basic and diluted share were SEK 5.55 against SEK 4.22 for the same period a year ago. Adjusted earnings per share were SEK 5.55 against SEK 4.22 for the same period a year ago. EBITDA from product segments was SEK 1,406 million against SEK 1,188 million for the same period a year ago.

For the nine months, on consolidated basis, the company reported sales of SEK 9,664 million against SEK 8,800 million for the same period a year ago. Currency translation affected the sales comparison negatively by SEK 28 million. In local currencies, sales from product segments increased by 10%. Operating profit was SEK 3,397 million against SEK 3,218 million for the same period a year ago. Group operating profit for the prior year included one-time items of SEK 238 million relating to capital gains on the sale of STG shares and from the sale of a parcel of land. Currency translation has affected the comparison of the operating profit positively by SEK 15 million. Profit attributable to equity holders of the parent was SEK 2,653 million against SEK 2,497 million for the same period a year ago. Earnings per basic and diluted share were SEK 15.22 against SEK 13.78 for the same period a year ago. Net cash generated from operating activities was SEK 2,614 million against SEK 2,569 million for the same period a year ago. Purchase of property, plant and equipment was SEK 464 million against SEK 231 million for the same period a year ago. Purchase of intangible assets was SEK 5 million against SEK 7 million for the same period a year ago. Adjusted earnings per basic and diluted share were SEK 15.22 against SEK 12.16 for the same period a year ago. Net debt was SEK 11,034 million as at September 30, 2018 against SEK 10,096 million as at September 30, 2017. EBITDA from product segments was SEK 3,950 million against SEK 3,493 million for the same period a year ago. EBITA was SEK 3,663 million against SEK 3,222 million for the same period a year ago.

For the nine months, on parent basis, the company reported sales of SEK 34 million against SEK 35 million for the same period a year ago. Operating loss was SEK 133 million against SEK 85 million for the same period a year ago. Loss before income tax was SEK 362 million against profit before income tax of SEK 5,546 million for the same period a year ago. Loss was SEK 281 million against profit of SEK 5,663 million for the same period a year ago. The loss for the first nine months mainly pertains to lower dividends from subsidiaries and higher impairment losses on shares in subsidiaries compared to the same period in previous year.

For the full year 2018, the company expects effective corporate tax rate is to be around 21.5%(23.8). The expected reduction in tax rate is a consequence of the US corporate income tax reform effective January 1, 2018.