Altadis Volumes Rise During First Nine Months

Source from:  tr.itsmyiq.com Nov 16, 2007 11/19/2007

Altadis sold 89.6 billion cigarettes worth €1,306 million during the first nine months of this year, up from 85.7 billion cigarettes worth €1,251 million during the first nine months of last year. The 4.5 per cent increase in volumes was said to have been mainly due to a recovery in Russia and the Middle East, while the 4.4 per cent increase in the value of those sales was down to the higher volumes, higher prices in Spain, and a good performance on the Moroccan market. The value of Altadis' sales of blond cigarettes, which make up 76 per cent of the total, increased by 6.0 per cent from €932 million to €988 million. Sales grew in Spain (15.8 per cent), France (2.0 per cent), Morocco (11.2 per cent), the Middle East (22.6 per cent), and Russia (5.3 per cent), but Altadis suffered in Germany because of the generally weak market there and, especially, because downtrading hit hardest the segments where the company's products are strongest. Altadis' key international blond brands, Gauloises, Fortuna and Gitanes, which between them account for 46 per cent of the volume and 57 per cent of the value of its total blond sales, increased their volume sales by 5.1 per cent and the value of those sales by 2.3 per cent. The value of cigar sales during the first nine months of this year, at €629 million, was down by €31 million or 4.7 per cent on those of the first nine months of last year, mainly due to unfavorable exchange rates, challenging market conditions generally and, in particular, tougher competition in the US. Altadis breaks its sales down into the US (55 per cent), Europe (16 per cent) and Havana (16 per cent). The company reported good performance on the Spanish market and in respect of Havana sales, but this was not enough to offset a reduction in sales in the US during the first quarter and the weakness of the US dollar throughout the nine month period. However, Altadis USA's sales, at €343 million, were up by 0.3 per cent in dollar terms. Havana cigars were said to have performed well in mature markets such as Spain, Germany and Italy, and to have shown encouraging performances in the emerging markets of Russia, Asia Pacific, Latin America and Morocco. Nevertheless, while Havana sales increased by 3.4 per cent in dollar terms, they were down 4.3 per cent in euro. Tobacco distribution accounted for 47 per cent of the company's total logistics activities, which amounted to sales of €948 million. General activities grew by 8.1 per cent to €500 million, while tobacco activities grew by 5.2 per cent to €448 million. Meanwhile, the Altadis group's sales during the first nine months of this year, at €3,019 million, were up by 2.6 per cent. Net income, at €386.8 million, was up by 14.1 per cent, ebitda was up by 5.9 per cent to €916 million, and earnings per share were up by 17.7 per cent to €1.53. Enditem