Carlsberg expects $1.4 billion writedown on Russia divestment
2022.04.21 13:47
FILE PHOTO: Bottles of Carlsberg beer are seen in fridge in a bar in St. Petersburg June 17, 2014. REUTERS/Alexander Demianchuk
COPENHAGEN (Reuters) -Carlsberg expects a writedown of about 9.5 billion Danish crowns ($1.39 billion) related to its decision to divest its business in Russia, the Danish brewer said on Thursday.
The assessment did not take into account any external offers for the business, Carlsberg (OTC:CABGY) said.
The brewer said it also expected impairment charges in Ukraine of 300 million crowns along with goodwill write-downs of 700 million crowns for the Central and Eastern Europe region, which includes Ukraine.
Carlsberg lowered its operating profit growth forecast for this year to between minus 5% and plus 2%, compared with previous guidance of 0% and 7%.
The company last year generated 10% of its total revenue and 6% of its operating profit in Russia, where it has eight breweries and 8,400 employees.
It took full control of Baltika in 2008 but has faced sluggish sales amid a sanction-hit economy and regulations to curb alcohol abuse.
Carlsberg , the Western brewer most exposed to the Russian market, said in late March that it would sell its Russian business.
($1 = 6.8196 Danish crowns)
