Covid affects Davidoff’s turnover negatively

Covid affects Davidoff’s turnover negatively. The annual report of Oettinger Davidoff AG shows a 6.7 percent decline in turnover in comparison to a year before. The turnover went from 453 CHF to 423 CHF. That is almost 416 million Euro to 388 million Euro. Almost all of the decline is related to the covid-19 pandemic, but also the exchange rates didn’t do Oettinger Davidoff a favor.

Lockdowns

For several weeks the factories of Davidoff in both the Dominican Republic and Honduras had to close their doors. That results in lower production. A decline of more than 12%. The number of employees grew by 3 percent. The lockdowns all over the world also affected sales at the Davidoff flagship stores and Davidoff Appointed Merchants. Davidoff is also a strong force in the duty-free and travel channel, which completely vanished in 2020 due to all the travel restrictions

The brand that hurts the most is Davidoff, with a decline of over 8 percent. But Camacho and Avo make up for it with a growth of 20 percent for Camacho and almost 14 percent for Avo. The most sold cigar from Oettinger Davidoff remains the Davidoff 2000, followed by the Camacho Connecticut Robusto and the Avo Classic No.2.

Way forward

In 2018, Oettinger Davidoff launched its five-year transformation roadmap “Way Forward” in order to secure and further expand its leading position in the hand-rolled premium cigar and wholesale business. “The results of the cost optimizations achieved in 2020, within the ‘Way Forward’ framework, were crucial to delivering a good result also in this extraordinary year 2020. We are definitely on the right path, and I am proud that thanks to our motivated employees and our ‘Crop- to-Shop’ philosophy, we were able to successfully navigate through the pandemic and supply our partners without interruption, and in the usual best quality,” says CEO Beat Hauenstein. 

“We have proven that Oettinger Davidoff is a reliable and indispensable partner for our customers. Even though the effects of the pandemic will continue to challenge us for some time to come, we are well equipped to look towards the future with confidence,” Hauenstein continues.