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

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… Despite the diffi culties encountered in France, where we managed to hold the decline
in our sales volume to less than the drop in the market, our overall economic sales continued
to increase in 2004. Their 6.8% gain refl ects both excellent growth in our international sales,
which were driven by the dynamism of our strategic brands, and the full-year integration of
Régie des Tabacs du Maroc sales, which had not been included in the Division’s 2003 results.
The extremely competitive blond segment is our primary growth vector, while the dark
segment – although maintaining its profi tability because of price increases and the absence
of investments – continues to decline. In 2004, overall revenue from blond cigarette sales rose
by 14%. Sales of Gauloises Blondes outside France represented 80% of the brand’s total sales,
once again strengthening its position as a major international player. Gauloises Blondes’ market
share increased in almost every European country, and the brand made a strong contribution to
our excellent performance in the Middle East. Its 17% sales gain in international markets easily
enabled us to offset the sluggishness of the French market. Our second fl agship brand, Fortuna,
maintained its number-one ranking in the Spanish market and moved ahead in sales in France,
Italy and Morocco, where it had been successfully launched in mid-2004.
Our large portfolio of blond brands, in addition, which is designed to cover all market segments,
continued to expand: the Marquise brand in Morocco and Balkan Star in Russia are now among
our main tactical brands.
As we demonstrated in 2004, today Altadis has all the resources necessary to face
and offset challenges that may be encountered in certain markets and to continue its
international expansion.”