Healthy growth

David­off posts im­pres­sive earn­ings re­sults for 2014.

Virtuozity - - BRAND -

Oet­tinger David­off AG fur­ther con­sol­i­dated its strong global mar­ket po­si­tion in 2014, se­cur­ing above-av­er­age growth and in­creas­ing its mar­ket share.

De­spite the con­tin­ued fo­cus on core busi­ness, which prompted the com­pany to sell its cig­a­rette ma­chine busi­ness in 2013, Oet­tinger David­off AG in­creased rev­enue by 1.7% in 2014 to CHF 1.23 bil­lion. This per­for­mance was driven by the David­off brand’s strong growth, with global rev­enue in­creas­ing by 12%, as well as im­pres­sive growth in the USA.

Earn­ings de­vel­oped above av­er­age, and cigar pro­duc­tion went up once again to 44 mil­lion cigars, which is 13.1% higher than in the prior year and a new pro­duc­tion record. This im­proved per­for­mance is also re­flected by a 4.9% in­crease in staff num­bers, mainly due to new hires in the Do­mini­can Repub­lic and Hon­duras. The com­pany cre­ated more than 170 new jobs in these pro­ducer coun­tries. De­spite the neg­a­tive ef­fect of free­ing up the Swiss franc ex­change rate, and de­spite the un­cer­tain eco­nomic out­look in Europe, Oet­tinger David­off is cau­tiously op­ti­mistic about 2015, which is its 140th an­niver­sary year.

The com­pany’s con­sis­tent fo­cus on its core busi­ness of pro­duc­ing and sell­ing its own brands and those of other pre­mium pro­duc­ers, as well as de­vel­op­ing its own in­no­va­tive new prod­ucts and re­launch­ing se­lected ex­ist­ing ones, is pay­ing off.

CEO Hans-kris­tian Hoe­js­gaard com­mented as fol­lows on last year’s per­for­mance: “We are very pleased with the re­sults we’ve achieved and the high de­gree of con­sis­tency in Oet­tinger David­off’s rev­enue, earn­ings and sales vol­umes.”

This per­for­mance is still based mainly on the core David­off brand, but some of the com­pany’s other in­ter­na­tion­ally dis­trib­uted brands have also posted pleas­ingly strong growth rates.

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