Carlsberg joins rival Heineken in quitting Russia, faces big hit
Reuters
Published Mar 28, 2022 08:38AM ET
Updated Mar 28, 2022 10:36AM ET
COPENHAGEN (Reuters) -Carlsberg will exit the Russian market and take a "substantial" non-cash impairment charge, the Danish brewer said on Monday, the latest Western company to exit amid mounting pressure on Russia following its invasion of Ukraine.
Dutch brewer Heineken (OTC:HEINY) also announced on Monday it had decided to exit its Russian business at a cost of 400 million euros ($438 million).
"We have taken the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment," Carlsberg (OTC:CABGY) said. "Upon completion we will have no presence in Russia."
Carlsberg, the Western brewer most exposed to the Russian market, launched a strategic review of its Russian business this month but had kept its eight breweries in the country operating.
The decision to exit Russia would result in a "substantial non-cash impairment charge" this year, it said without providing further details.
Carlsberg had non-current assets in Russia worth 19.2 billion Danish crowns by the end of 2021, which amounts to around 15% of total assets or 44% of its total equity, its annual report showed.
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Written By: Reuters
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