Davidoff posts impressive earnings results for 2014.
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.