"Aldeasa effect" backs Altadis profit growth

Gavin Lipsith

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The tobacco-to-retail group announces profit growth in the first six months of 2005, citing acquisitions including Aldeasa as a positive force

Franco-Spanish tobacco firm Altadis' recently-acquired 50% stake in Aldeasa has helped the group to a 3% increase in net profit for the first half of 2005. The company, which increased its stake in the Spanish retailer when it partnered Italian conglomerate Autogrill in a takeover bid earlier this year, said that consolidation of new assets offset pressure from weak cigarette sales in Spain.

Altadis' net profit rose to €255.3m ($311.5m) in the first half, up from €248.2m ($302.8m) in the same period last year. Sales rose 14% to €1.95bn ($2.38bn) in the first half.

The manufacturer of Altadis and Gauloises cigarette brands also reaped the benefits of acquisitions made in 2004, when it bought Russian tobacco company Balkan Star and Italy's former state tobacco distributor Etinera.