Oettinger Davidoff AG, parent company of the Davidoff, Camacho, AVO, Cusano and Zino brands has announced the company generated 1.126 billion CHF ($1.16 billion) in revenue last year, a decrease compared to prior year figures of CHF 1.23 billion ($1.32 billion) and CHF 1.21 billion in 2013.
The company blamed the drop on a variety of factors including softer demand in China and Europe and lower sales in its non-core business. In December, the company announced that it sold Contadis AG, a distribution company owned by the company. Davidoff estimates revenue figures will fall CHF 440 million due to the Contadis AG sell off.
The final factor in revenue decrease is the stronger Swiss franc compared to most Asian and European currencies. The drop in revenue is 8.2 percent, but Davidoff claims it is only 3 percent when using constant currency exchange.
In the financial year gone by, Oettinger Davidoff has made great progress, both strategically and with regard to the development of the core brands and market shares,” said Hans-Kristian Hoejsgaard, ceo of Oettinger Davidoff AG, in a press release. “This is all the more gratifying since we were obliged to campaign simultaneously on a number of fronts, such as the exchange rate situation, the anti-corruption law in China and the economic trend in Russia, as well as further international tightening of anti-tobacco regulations.”
Despite the drop, the company claims the eponymous Davidoff line was up 10.5 percent, while Camacho was up 34.4 percent. Interestingly, the company did not disclose figures for the AVO brand, which underwent a complete makeover last year. U.S. sales were up 15 percent.
The company also highlighted the efforts it made acquiring and launching distributors in Asia and Europe, as well as its Central American expansion, including the new Camacho factory—expected to open within the next month or so—and its land purchases in Nicaragua.
Hoejsgaard closed his remarks stating the company is making investments in furthering its retail business. Davidoff is expected to open its latest flagship in Houston this week.