(Bloomberg) -- Carlsberg A/S, the biggest brewer in Russia, suspended its 2022 financial guidance and warned that it may have to write down its assets in the country.
The Danish company said late Wednesday it's no longer possible to provide a financial forecast because of the Russian invasion of Ukraine. The beermaker said it's also reviewing a full range of strategic options for its Russian business, which is called Baltika Breweries. The stock fell as much as 4.7% Thursday.
The Copenhagen-based company, which employs 8,400 people in Russia, entered the country in 2000 and the operations were for years seen as the beermaker's biggest growth opportunity. Russia previously made up almost a third of profit but has in recent years diminished in significance for Carlsberg as the Russian beer market has underperformed.
Russia and Ukraine accounted for about 13% of group revenue and about 9% of operating profit in 2021, Carlsberg said. Previously the brewer forecast that adjusted earnings would increase as much as 7% this year.
“The group's assets in both markets may also be subject to non-cash impairment and write-down,” the company said.
Dutch rival Heineken NV said Wednesday it will stop the production and sale of its own brand beer in Russia, joining a wave of companies to exit the country in response to the invasion of Ukraine.
Carlsberg, which last week suspended investment in Russia, said Wednesday it will drop all advertising in Russia, and will stop producing and selling the flagship Carlsberg brand in the country. All profit from the Russian business will be donated to relief organizations.
“Baltika Breweries will be run as a separate business, with the purpose of sustaining our employees and their families,” Carlsberg said.
©2022 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
