Carlsberg’s (CABGY) Q2 2016 Earnings Call

posted in: Earnings Call, Notes | 0

Heine Dalsgaard – CFO

Currencies had an impact

“The impact from currencies of minus 2.2 billion more than offset the organic growth and reported mid revenue decline by 4%. The currency impacts were primarily related to the ruble; the Chinese RMB; the British pound; and the Norwegian kroner.”

Warm weather beneficial in Eastern Europe

“To add a little extra colour on the beginning of Q3, we have seen good performance in Eastern Europe due to very warm weather while Western Europe has been soft which seems to be caused by the fact that there were still some stocks in the system following the euro-related sell-in, in June.”

Cees ‘t Hart – President & CEO

Euro 2016 was a boon to growth

“Our shipped volumes in France grew by 3% in line with the market. The growth was mainly driven by our premium brands such as Carlsberg, Tourtel, Skol, and Grimbergen. The EURO 2016 was well executed by our team and supported gross of our premium brands as well as market share gains in the on trade channel. ”

They increased prices selectively

“We increased prices across the portfolio in H1 by 5%. It’s an significant variation between brands. We applied this selective approach to achieve a clearer distinction between categories and brands. For instance, we reduced the price point of the Carlsberg brand to make is more affordable international proposition for consumers. With this we entered the summer season is a more competitive portfolio offering in the last year.”