Oettinger Davidoff sets records for the 2022 financial year. The Basel family company exceeds the good result of 2021.
Full-year sales for 2022 rose by 8.2 percent to 494.1 million Swiss francs (CHF). Cigar production in the Dominican Republic and Honduras increased by 26.3 percent to 43.1 million units compared to the previous year. Due to the increased demand, the company will continue to expand its production facilities in the Dominican Republic.
The sales development of the core brand Davidoff was remarkable, which again recorded double-digit growth (28%). This is due to positive developments in all markets, including Global Travel Retail, and successful product launches. Earlier this year, Davidoff launched the “Davidoff The Difference” campaign to celebrate the Davidoff White Band Collection. As part of this campaign, some of the most legendary cigars from the past are being brought back as limited editions under the motto “cigar history repeated”
After a successful re-launch in 2021, the Zino brand once again experienced impressive growth of 84% in 2022. This was made possible by a strong expansion of the distribution channels and targeted marketing activities in retail. In addition, two new lines were introduced.
CEO Beat Hauenstein comments on the financial results as follows: “The year 2022 was indeed a turbulent but memorable financial year. It started with very encouraging signs of a post-pandemic recovery but was marred by rising inflation rates and supply chain challenges, exacerbated by the unspeakable war in Ukraine. Nevertheless, from an economic point of view, 2022 was a record year for Oettinger Davidoff in the 148-year company history. We exceeded our ambitious financial targets for 2022 and further improved both our EBIT and our liquidity. The continuous innovations in marketing and retail for our core brands Davidoff and Zino made a major contribution to the extraordinary results. At the same time, the proven management of our ‘crop-to-shop’ philosophy enabled us to react quickly and agilely and ensure the compliant availability of our products on time, in full and with the highest quality in more than 130 markets.”
In its tobacco growing areas in the Dominican Republic, the company has implemented drip irrigation systems that result in a reduction in water use of up to 82%. In addition, the company is intensifying its efforts to research and evaluate natural alternatives to crop protection products for tobacco cultivation. In addition, the company opened the “Centro de Enseñanza Tabadom” in the Dominican Republic earlier this year. This is a learning center where the children of almost 2,000 employees can take part in extracurricular English courses free of charge.
Aspire727 – Departure into the future
At the end of 2022, Oettinger Davidoff was able to prematurely complete its five-year transformation program “Way Forward”, which was launched in 2018. As part of the transformation program, 50 ambitious and complex projects were carried out to ensure the long-term sustainability of the company and its brands. “This achievement was only possible thanks to the outstanding commitment of our almost 4,000 employees around the world. Together as the Davidoff family, we were able to exceed the ambitious targets for EBIT and cash flow,” comments CEO Beat Hauenstein. The company will now embark on its next 5-year strategic growth program, dubbed Aspire727. “It is our goal to continue growing our sales and profits with Aspire727 by 2027. Oettinger Davidoff stands on very solid foundations and we want to continue to make a difference in the lives of our cigar lovers and underpin our claim to remain the innovation leader in the global premium handmade cigar business.”
Originally posted on June 21, 2023 @ 9:17 am