Carlsberg takes $1.4bn writedown on Russian business

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Danish multinational brewer warns it still needs a buyer amid ‘very high degree of volatility and uncertainty’

A bartender holds a glass of Carlsberg beer in a bar in St Petersburg, Russia. Picture: ALEXANDER DEMIANCHUK/REUTERSCarlsberg, the most exposed to the Russian market, expects its decision to sell its business there to result in a writedown of about 9.5-billion DanishThe company, which has eight breweries and 8,400 employees in Russia, said in March it would sell its business in the country, joining an exodus of Western companies since Russia’s invasion of Ukraine.

In addition, Carlsberg reported a currency loss adjustment to its Russian business worth 4-billion krone triggered by a recent depreciation of the Russian rouble. Carlsberg had non-current assets in Russia worth 19.2-billion Danish krone by the end of 2021, its annual report said."This is what they consider to be fair value of the asset now, but the question still remains what a potential buyer would pay for it."

Since then, however, it has faced sluggish sales in a sanctions-hit economy while facing Russian regulations aimed at curbing alcohol abuse.

 

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Good to see beer getting into the spirit.

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