Tobacco.org

Swedish Match Profit Beats Estimates on Snuff Demand (Update4)  

Swedish Match AB, Europe's largest maker of smokeless tobacco products, reported second-quarter profit that beat analysts' estimates on stronger sales of snuff in the U.S. and Sweden.

Net income climbed 16 percent to 512 million kronor ($86 million) from 441 million kronor a year earlier, the Stockholm- based company said today. The average of eight analysts' estimates compiled by Bloomberg was 471 million kronor.

Snuff is Swedish Match's main earnings generator and most profitable product. Margins strengthened in Scandinavia, where the product is called snus, after first-quarter growth was held back by a second Swedish tax increase in two years. Competition is increasing in the country and the U.S. as British American Tobacco Plc and Altria Group Inc. jockey for market share.

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