Altadis: 2006 Net Profit Fell 22 Percent

[kenstogie]

MORE of the BIZ OF CIGARS...

Tobacco company Altadis SA, the maker of Fortuna, Gitanes and Ducados cigarette brands, said Thursday that its 2006 earnings fell 22 percent amid pressure from core Spanish markets due to higher taxes and wider smoking restrictions.
Net profit dropped to euro453 million (US$592 million) in 2006 from euro577 million a year earlier, the Spanish-French company said. Annual sales fell 3.4 percent to euro3.97 billion (US$ 5.19 billion), below market projections of euro3.99 billion (US$ 5.21 billion). The company did not break out quarterly results.

http://www.forbes.com/feeds/ap/2007/...ap3451764.html

[Glacierman]

And so it begins.....

[Coffee Grounds]

Originally Posted by kenstogie

MORE of the BIZ OF CIGARS...

Tobacco company Altadis SA, the maker of Fortuna, Gitanes and Ducados cigarette brands, said Thursday that its 2006 earnings fell 22 percent amid pressure from core Spanish markets due to higher taxes and wider smoking restrictions.
Net profit dropped to euro453 million (US$592 million) in 2006 from euro577 million a year earlier, the Spanish-French company said. Annual sales fell 3.4 percent to euro3.97 billion (US$ 5.19 billion), below market projections of euro3.99 billion (US$ 5.21 billion). The company did not break out quarterly results.

http://www.forbes.com/feeds/ap/2007/...ap3451764.html

22% is very bad. What exchange are they on?

[jcruz1027]

If you look at their Cigar Only numbers, they don't look bad:

Cigars: increased strongly is profitability. Sales were up EUR 3 million, reaching EUR 888 million, thanks to continued strong performance in US operations and Havana cigar sales

- The EUR 888 million sales broke down between US (55%), Europe (17%) and Havana cigars (15%) The performance pattern remained at a very high level with the US market and the Havana brands as main drivers.

- Sales of Altadis USA increased by 4.1% in dollars and 3.4 in euros to EUR 487 million.

- Sales of Havana grew by 12.1% in euros to EUR 135 million; they performed very well in mature markets with encouraging performance in many emerging markets.

[baglorious]

Heh. And somehow, I'm not too worried.

There are certain industries that, in my opinion, will never really have problems being profitable. So the profits fell by 22%? Still making profits. I bet Ford Motor Company wishes their "profits" fell by 22%... but that would of course, require that they make 22% or more in profits. Or even profits.

There might be various reasons for a company's decline involving management and company structure, taxes, economies, blah blah blah, but I'm sure changes will be met with adjustment, and the factories will keep making the cigars. Sooner or later, perhaps there will be lawsuits against cigar companies akin to lawsuits against the cigarette manufacturers (which haven't killed the tabacco giants), but I gotta think the cigar industry will always be relatively healthy. Its historically a profitable commodity. An item people buy despite the fact that we could probably (and don't stone me for saying this) really spend our money in better ways. (By the way, I didn't just say that.)

Of course if you're talking about this because you INVEST in the cigar companies... I guess it stinks! I prefer to invest directly in the cigars... and I'm doing the best I can to keep your stocks up, friends!!!

My uncle owns a beer distributorship. When the economy is good and people are happy, they buy beer to celebrate. When the economy is bad and people are sad, they buy beer to forget their worries. I think cigars are the same, to a lesser extent. People will always buy them.

The moral of the story? Buy a beer distributorship if you have a few million lying around.

[monetrey]

people will always drink and smoke

[Ermo]

ALT.MC, on the exchange in Spain.

If I was Altadis I'd make Castro "disappear" and pour all my money into lobbyists and political contributions to try to end the embargo. Big money for them when it ends.