This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Carlsberg CEO Discusses Q2 2010 Results - Earnings Call Transcript

I'll now give you a summary of the group performance for the first six months, and then briefly go to the regions. And then as always, Jørn will then after walk you through the numbers and comment on our upgraded 2010 outlook. And thereafter, we will be happy to take your questions.

Please go to slide three. Going into 2010, we had clear ambitions of improving market shares in both volume and value. And after the first half of the year, we are on track. In Northern and Western Europe, our overall market share has started to improve after flat market share development in recent years. An important objective has been and will remain to grow share in both value and volume terms in the region.

We saw strong market share performance in Eastern Europe. There were particularly strong gains in Ukraine, continuing the very positive trends. Our market share in Russia improved sequentially during the first six months to 40.1% in Q2. And in Asia, we have once again obtained strong gains in market share across the region. And our business in Indo-China was particularly strong.

One of the drivers of the market share improvement was the successful activation of the Carlsberg brand across many markets in connection with the World Cup. And volumes of the Carlsberg brand increased globally by 8%. The performance in all regions is also a result of the acceleration of new product introductions, line extensions, and events and promotions successfully executed. We increased investments behind our brands and activities. And we increased spend behind innovations as well. That's been and will continue to be an important driver. Our brand marketing spend has increased by double-digit percentages. Nevertheless, our total operating expenses are still declining as efficiency improvements more than offset the higher marketing expense.

And now to slide four, the financial performance for the group was strong for the first six months as margins and net results improved substantially. Operating margin improved strongly by 210 basis points to 17.2%. In Q2, the improvement was even stronger with 290 basis points improvement to 23.6%. And we did see operating margin improvement in all regions.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,390.52 +195.10 1.13%
S&P 500 0.00 -2.75 -0.14%
NASDAQ 4,630.7410 +64.6030 1.41%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs