CABGY Carlsburg AS (PK)

By Dominic Chopping

Carlsberg AS said Monday that it has decided to completely exit Russia.

The Danish brewer previously said it would retain its Baltika Breweries in Russia to enable employees in the country to remain in work, while committing to halt new investments in the country and stopping production and sales of its Carlsberg beers in the Russian market.

However, based on a strategic review of its presence in Russia, the company said it has decided to seek a full disposal of its business in Russia, "which we believe is the right thing to do in the current environment."

Upon completion, Carlsberg will have no presence in Russia, it added.

Baltika Breweries, part of the Carlsberg group, owns eight breweries in Russia and has around 8,400 employees there, representing more than one in every five of its total global workforce.

The business will be reassessed at fair value, which will result in a substantial non-cash impairment charge, it said.

In 2021, the business in Russia reported revenue of 6.5 billion Danish kroner ($959 million), around 10% of its group total, and operating profit of DKK682 million, just more than 6% of its group total.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

March 28, 2022 09:02 ET (13:02 GMT)

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