Habanos S.A. reaches record revenues in 2024

[El Presidente]

What a drivel fest. They couldn't give a hoot about the consumer. 

 

 

Habanos S.A., world leader in the commercialization of premium cigars, reaches its 30th anniversary with a record revenue figure of 721 million dollars

Author: ACN | [email protected]

september 24, 2024 09:09:43

http://en.granma.cu/file/img/2024/09/medium/f0038562.jpg

Photo: Cubaminrex

http://en.granma.cu/file/img/2024/09/medium/f0038562.jpg

Executives and workers of the Habanos S.A. Corporation, world leader in the commercialization of premium cigars, are in high spirits, not only for reaching its 30th anniversary, but also for reaching a record revenue figure of 721 million dollars in 2024.
Founded on September 14, 1994, in just three decades the entity has managed to consolidate itself as a global reference in the promotion and marketing of the famous Habanos, considered by many as the best cigars in the world, its Communications Department informed the Cuban News Agency.
Present in more than 130 countries in the five continents, it has an extensive portfolio of 27 premium brands, including the iconic Cohiba, Montecristo, Partagás, Romeo y Julieta, Hoyo de Monterrey and H. Upmann.
The company has tripled its consolidated turnover, irrefutable proof of its continued success and strong positioning in the global market, according to Maritza Carrillo González and Luis Sánchez-Harguindey, its co-presidents.
Both consider that during these 30 years they have traveled a road full of tradition, passion and dedication, taking Habanos to the most diverse and far-flung corners of the world, thus consolidating their leadership in the premium tobacco industry.
But beyond figures and achievements, what really defines us are the relationships we have built, say the corporation's executives, who also point out that each satisfied customer represents a shared success, and we are grateful for their loyalty and support over the years.
Since its beginnings, Habanos S.A. has stood out for unifying its brands under a single commercial structure, setting high standards of excellence and exclusivity, its Communication Department pointed out.
The commitment to quality and tradition has been unwavering, marketing a handmade product from the selection of the leaves to the twisting, a process that is done entirely by hand.
According to the source, among the most outstanding milestones of these three decades is the launch of the Behike line of the emblematic Cohiba brand, considered one of the best creations in the world of premium cigars.
This achievement, together with the introduction of the Reserva and Gran Reserva concepts, which use three- and five-year aged leaves of the highest quality, are just some of the advances that have positioned the corporation at the top of the tobacco industry.
Another of its most important successes is the Habano Festival, an event that has been gathering distributors, aficionados, experts and celebrities from all over the world every year since 1999, and in which, as a result of the auction of humidors, foreign currency is raised for Cuba's Public Health System.
 

 

SHARE facebook twitter

[Fugu]

Who would've thought?

[SCgarman]

No company in the USA with this business model would last a year. I'm sure they are spiking the football and planning the next price increase. Another 20% across the board sounds reasonable.😂

[El Presidente]

18 minutes ago, SCgarman said:

No company in the USA with this business model would last a year. 

Pepsi

Coca Cola

Apple 

 

......any monopoly, oligopoly has given it a serious crack over the past 42 months 

 

 

There is a price to pay however! Let's see how HSA plays it in 2025/26 which I believe will be their years of reckoning. 

 

Pepsi realizes it flew too close to the sun on price hikes

You can’t raise prices forever, PepsiPEP $170.25 (-1.30%) has learned.

For the last couple years, Pepsi and its peers raised prices on snacks, allowing them to grow profits even when consumers were buying fewer cans of soda and bags of chips by volume. But it's starting to bite them back.

It raised prices by 5% in this most recent quarter, marking the second quarter in a row that it only raised prices by single-digit percentages. In the same period in 2023, it raised prices by 15%. 

The snack giant reported a 2% drop in sales volume in its most recent quarter, which outweighed its 1% increase in revenue. In the same period in 2023, it reported a 2.5% decrease in volume but a 10.4% increase in revenue. 

PEP

$170.25

-1.30%

Today

Pepsi chief executive Ramon Laguarta, said the consumer is now more “price conscious” and looking for deals.

“The consumer is more cautious, the consumer is more choiceful, but the consumer is willing to spend in areas where they see value,” Laguarta said. 

[goalie204]

Very sad times. Such demand that supply cannot keep up on top of their not caring. I remember when a RASS was 15, now they are like 42 retail here...soon 60...then 80 probably... sigh! Oh well! Still love my CCs Lol.

 

[SCgarman]

8 hours ago, goalie204 said:

Very sad times. Such demand that supply cannot keep up on top of their not caring. I remember when a RASS was 15, now they are like 42 retail here...soon 60...then 80 probably... sigh! Oh well! Still love my CCs Lol.

25ct boxes of RASS were $180-$200usd/box for years and years. I bought tons of 'em.

[ha_banos]

50 minutes ago, SCgarman said:

No company in the USA with this business model would last a year. I'm sure they are spiking the football and planning the next price increase. Another 20% across the board sounds reasonable.😂

https://www.bbc.co.uk/news/articles/c728313zkrjo McDonald's to 'rethink' prices after sales fall 😇

https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/McDUS Pricing Myths vs Facts 052924.pdf

[BrightonCorgi]

Although not the best for us, I think Habanos should stay the course with high prices for near future. Seems to be helping their bottom line.

[PartagasIV]

If that only meant better supplies/support of the farms and farmers...

[BrightonCorgi]

6 hours ago, PartagasIV said:

If that only meant better supplies/support of the farms and farmers...

Fat chance on that one. They are just afterthoughts at best.

[El Presidente]

6 hours ago, BrightonCorgi said:

Fat chance on that one. They are just afterthoughts at best.

Habanos are marketing/sales only. 

Zero involvement in farming/manufacture/production. That is all Tabacuba. 

[SCgarman]

2 hours ago, ha_banos said:

https://www.bbc.co.uk/news/articles/c728313zkrjo McDonald's to 'rethink' prices after sales fall 😇

https://corporate.mcdonalds.com/content/dam/sites/corp/nfl/pdf/McDUS Pricing Myths vs Facts 052924.pdf

Box of PSD4 went from $200usd/ box to $600/box. If a $5 BigMac went to $15, how long before literally nobody would be buying them? McD's has added a value meal on the menu here in the US, because their bottom line is suffering. Personally I don't care, quit eating all fast food over 3 years ago. None of them will get a dollar from my wallet.

[El Presidente]

I think we could fairly agree that a D4 should never have been $200-$250 a box. Poor pricing policy. Plain stupid. 

$22-$26 a stick is about right. That is if you can maintain the QC in blend and construction. I mean, how many Robusto in the world are better. Rolled properly, they should be at Padron 1926 equivalent prices. Same goes for BBF/SPB/Chox X/HUC1/ etc. 

I have much more of a problem with the pricing of Trinidad/Cohiba/Romeo Linea/Monte Linea/Specialties. 

 

[BrightonCorgi]

5 hours ago, El Presidente said:

I think we could fairly agree that a D4 should never have been $200-$250 a box. Poor pricing policy. Plain stupid. 

$22-$26 a stick is about right. That is if you can maintain the QC in blend and construction. I mean, how many Robusto in the world are better. Rolled properly, they should be at Padron 1926 equivalent prices. Same goes for BBF/SPB/Chox X/HUC1/ etc. 

I have much more of a problem with the pricing of Trinidad/Cohiba/Romeo Linea/Monte Linea/Specialties.

Do different distributors have different wholesale pricing? How can the world settle on semi-uniform cigar pricing if taxes vary widely around the world?

[Hammer Smokin']

Meh. I guess we could argue Big Macs were underpriced as well. 

Either way, no, Cuban cigar increases have not followed McDonalds, Coke, Pepsi, or other normal product. 

But those products are meant and marketed to normal people. 

Cuban cigars are meant and marketed for the worlds elite. (lol)

[El Presidente]

5 hours ago, Hammer Smokin' said:

 

Cuban cigars are meant and marketed for the worlds elite. (lol)

.....Like Apple

 

[Fugu]

6 hours ago, El Presidente said:

Habanos are marketing/sales only. 

Zero involvement in farming/manufacture/production. That is all Tabacuba. 

On paper – correct, Rob. As it happens, in reality, one of the two shareholders of HSA is the same entity holding 100-percent of Tabacuba.
Even if leaving ownership structure aside, the marketing entity should have a vested interest in the thriving of its sole supplier. (you should think... )

[El Presidente]

Just now, Fugu said:

On paper – correct, Rob. As it happens, in reality, one of the two shareholders of HSA is the same entity holding 100-percent of Tabacuba.
Even if leaving ownership structure aside, the marketing entity should have a vested interest in the thriving of its sole supplier. (you should think... )

By any normal standard yes.

However this is far removed from textbook vertical integration.

Habanos from what I can see are controlling the things they can. Price, ROI

I think they have overcooked it and 2025 will be "challenging"

 

 

[El Presidente]

19 hours ago, BrightonCorgi said:

Do different distributors have different wholesale pricing? How can the world settle on semi-uniform cigar pricing if taxes vary widely around the world?

Pretty close buy price.

Different taxation.

Non compliance pricing threat is cut of supply. 

[Fugu]

13 hours ago, El Presidente said:

I think they have overcooked it and 2025 will be "challenging"

Yup, looks like it, and you wonder why. If we draw a simple historical parallel: In pre-Altadis (post-Soviet) times, there had been periods when even major European importers (Spain and France, also Germany and UK) shifted large amounts of financial resources and direct production means towards Cuba/Cubatabaco. Not because they were holding shares as proprietors (at that time, they didn’t). They simply were their biggest clients, wanting to keep supplies up and going. You wonder what (who) is riding them today. (Well, do we really? )

[BrightonCorgi]

4 hours ago, El Presidente said:

Pretty close buy price.

Different taxation.

Non compliance pricing  threat is cut of supply. 

Do the distributors in low taxation regions have higher profit margins then?

[bmac]

Too bad we couldn’t have bought stock in Habanos.🫣