Swedish Match: Q1 2021 Results Quick Read (Substack Exclusive)

Flash Note (SWMA SS) (Buy)

Swedish Match (“SWMA”) reported Q1 2021 results this morning. SWMA has been Buy-rated in our coverage since September 2000. Shares are currently down 1.8%.

U.S. ZYN Volume Growth Continued

SWMA reported 36.9m cans of shipments for its ZYN nicotine pouches in the U.S., representing a year-on-year growth of 49% and a sequential growth of 19%. Nicotine pouches also grew strongly in Scandinavia, though this benefited from inventory moves following a excise cut in Norway in January and ahead of Easter holidays:

SWMA Shipment Volumes (Q1 2021)

U.S. moist snuff and chewing tobacco had modest volume declines, maintaining or growing their market share as the categories return to their pre-COVID long-term decline. U.S cigars continued their strong growth, due to strong market demand for cigars and driven by HTL cigars manufactured in the U.S.

U.S. ZYN volume in Q1 2021 represents the continuation of a consistently strong trajectory, once shipment volumes are adjusted for inventory moves and other no…