Danish brewer Carlsberg has announced that it has signed an agreement to sell its business in Russia.
The deal is subject to a regulatory approval process in Russia as well as several customary conditions, including regulatory approval and fulfilment of certain conditions in a number of jurisdictions.
As a result, the timing of the final completion of the transaction remains uncertain, Carlsberg added.
A 'Very Important Milestone'
CEO of Carlsberg Cees ’t Hart commented, "The signing of an agreement to sell the Russian business is a very important milestone in the highly complex separation and selling process.
"While it has been an extensive process, it has been important for us to reach the best possible solution for all stakeholders, including our more than 8,000 employees in Russia. We now look forward to receiving the necessary regulatory approvals."
The separation of the Russian business from the rest of the Carlsberg Group included around 150 work streams across business functions and investments of more than DKK 150 million (€20.2 million) in brewery equipment and IT infrastructure in markets outside Russia.
Read More: Carlsberg Unveils New Production Line At Kyiv Brewery
The divestiture will not impact the brewer's earnings expectations for the financial year 2023.
In April of this year, Carlsberg reported first-quarter sales above expectations and narrowed its profit expectation for the full year as it managed to increase beer prices to cover rising costs.
It narrowed its expectation for organic operating profit this year to between minus 2% and plus 5% from its previous range of between minus 5% and plus 5%.
© 2023 European Supermarket Magazine – your source for the latest Drinks news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
