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

SMART
+31.6%
Sales increase in Finland
total sales volume in 2003 to less than 30% in the fourth
quarter of 2004, while local discount-priced king-size
cigarettes, which were relatively uncommon in 2003,
moved up to account for 30% of sales volume in the same
end-year period.)
Altadis brand trends followed those of the market.
Sales of the Group’s top-selling brand in the 70 mm
segment, Fox, fell by 26%, bringing its market share
down from 6.5% in 2003 to 4.2% in 2004. In the king-size
segment, however, which is now by far the biggest in
Poland, Altadis reacted vigorously, launching seven
new products. The Spike brand introduced a new
24-cigarette version in an original format and maintained
its 1.7% market share. Brilliant, which was launched at
the end of 2003, achieved a 0.6% market share in its fi rst
full year, while Iris withstood pressures very well and
maintained its market share.
Finland
Sales rose by 21.5%
The Finnish market was brisker than expected, posting
overall growth of 1.4% in 2004. There had been fears
of a downturn when Estonia, where prices are much
lower than in Finland, joined the European Union.
In fact, though, only the rolling tobacco segment
was affected, sliding 5.5% from its 2003 level, while
the cigarette segment gained 2.7%. Moreover, there
were neither price increases nor tax changes to weigh
on the environment. Altadis Finland continued to profi t
from its growth momentum and ongoing emphasis on
product innovation, confi rming its previous strong sales
showings and sharply outperforming the market. Sales
volume gained a total of 7.8%, increasing the company’s
overall market share from 26.3% in 2003 to 27.9% in
2004. In cigarettes alone, Altadis Finland’s share rose
from 16% to 18.9%, underpinned by a 21.5% increase
in sales. The Smart brand increased its sales by 31.6%,
primarily due to the success of the 30-cigarette pack,
a segment that the brand created two years ago,
and Smart also benefi ted from the market withdrawal
for almost a half-year of one of its main competitors.
In contrast, sales of pipe and rolling tobacco fell by
6.5%, which was slightly more than the market decline,
bringing Altadis Finland’s share in this segment down
from 79.6% to 78.7%. Overall revenues were 9.6%
higher than in 2003 and operating income gained 8.2%.
FORTUNA
Moves up to a 2%
Italian market share
33