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 also announced on Monday it had decided to exit its Russian business at a cost of €400 million ($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 said. 'Upon completion we will have no presence in Russia.'
Strategic Review Of Russian Business
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 DKK 19.2 billion (€2.6 billion) by the end of 2021, which amounts to around 15% of total assets or 44% of its total equity, its annual report showed.
In February, Carlsberg said that it expects organic growth in operating profit to fall short of last year's levels, after posting fourth-quarter sales above expectations.
The world's third-biggest brewer reported fourth quarter sales of DKK 15.2 billion (€2.04 billion), against DKK 14.7 billion (€1.98 billion) estimated by analysts in a company poll.