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

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… Altadis USA remained the benchmark company in the world’s biggest cigar market in 2004.
Its sales grew by 9.4% in dollar terms, primarily due to increased sales of Dutch Masters and record
gains by Premium cigars, underpinned by very dynamic marketing campaigns. In Spain, small-cigar
sales continued to advance, and strong consumer demand revitalized the national market which posted
a sharp upswing. Altadis outperformed the market both in volume (up 10.8%) and revenue (up 9.1%),
and its market share reached 36.5%. In France, where the market returned to volume growth despite
price rises associated with tax hikes, Altadis posted a 2% rise in sales volume and a 4.3% increase in
revenue. In Cuban cigars, Corporación Habanos’ innovations produced results that exceeded forecasts.
The new Edmundo de Montecristo model undoubtedly represented the world’s most successful launch
in recent years, with the product generating very positive effects on the entire Cuban brand portfolio.
In tandem with a solid position in its domestic markets (the United States, Spain and France) and
the strong worldwide presence of its Premium Cuban brands, Altadis also continued to expand
its export sales, focusing both on its mass-market brands from the United States and Europe and its
mechanically-made cigars from Cuba.
Overall, growth in our markets translated into a 7.2% increase in sales in euros and a 20.6% increase
in EBITDA despite the approximately 10% depreciation of the dollar. Excluding the dollar impact, these
percentages were even more impressive, with the Division’s economic sales gaining 14.9% and EBITDA
on a 32.5% upswing. In order to consolidate its positions in markets where Altadis is already the leader
as well as those where it targets expansion, the Group is implementing a multi-national marketing/sales
policy that takes into account each country’s specifi c economic and cultural characteristics.”