Annual report 2004 (English) - PDF 3546K - Imperial Tobacco

10
Overview of fi ve
successful years
In the course of just a few years, Altadis has demonstrated its ability to strengthen its positions
in international markets, maintain its growth momentum and increase its profi tability.
Economic sales
(in millions of euros)
EBITDA
(in millions of euros)
Net income before goodwill amortization
*
(in millions of euros)
* Normalized net income (excluding restructuring charges of EUR 315 million
in 2000 and EUR 240 million in 2003). Including restructuring charges,
2000 net income would have amounted to EUR 147 million and 2003 net income
to EUR 293 million.
1 Economic sales = sales of Group-produced products + the margin on logistics activities.
2 EBITDA: Earnings before interest, taxes, depreciation and amortization.
3 Net income rose 41% to EUR 413 million in 2004, but excluding the exceptional
EUR 240 million restructuring provision booked in 2003, normalized net income increased
by only 0.5%.
Today, underpinned by ongoing development of its three core
businesses, a wide international footprint reinforced by both
organic growth and acquisitions, and intensifi ed cost reduction,
Altadis is a major player in the tobacco sector. All of the Group’s
indicators refl ect the successful strategy implemented since
its creation: economic sales have risen by 38%, representing
average weighted annual growth of 7%; earnings before interest,
taxes, depreciation and amortization (EBITDA) have increased
at a weighted annual growth rate of 10%; EBITDA margin has
widened 4.5 points from 27.1% to 31.6%; and net income before
goodwill amortization has increased by approximately 9% a year.
During the last fi ve years, the Altadis share price has more
than doubled and the Group has distributed a total of
EUR 2,097 million to investors in the form of dividends
and share buybacks.
In 2004, Altadis pursued its development strategy, maintaining
profi tability amid a sometimes diffi cult business climate.
Economic sales advanced 3.9% to EUR 3.518 billion, and EBITDA
gained 3.3% to EUR 1.113 billion, shoring up the profi t margin.
Normalized net income before goodwill amortization expanded
0.5%, with net earnings per share growing 3%. The Group’s
fi nancial position also improved, with net debt receding
to EUR 1.939 billion. These fi gures underscore our ability
to achieve ongoing growth and offset diffi culties in the French
market by excellent performances in other markets and
business segments.
These results enable Altadis to pursue its payout policy, with
the Board of Directors deciding to propose to the General Meeting
a dividend payment of EUR 0.90 per share, representing
an increase of 12.5%. An interim dividend of EUR 0.40 was paid
on March 22, with a second payment of EUR 0.50 scheduled
on June 21, 2005.