Carlsberg lost $630 million in profit in six months as it exited the Russian market
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Danish beer producer Carlsberg Group suffered a loss of 4.6 billion Danish kroner ($630 million) in the first half of 2022 amid exit from the Russian market, follows from data published financial statements of the company.
Despite this, the company reports revenue growth of 23.6% to 35.4 billion Danish kroner ($4.84 billion) due to the positive impact of foreign exchange rates compared to the same period in 2021. Carlsberg also reported that its operating profit increased by 35.9%.
Sales volumes in Russia decreased by 2%, but in the reporting period, revenue growth increased by 44% to 4.3 billion Danish kroner (about $590 million) due to the appreciation of the ruble. The company’s profit in Russia after taxes amounted to 944 million crowns (approximately $130 million).
The company’s net loss amounted to 8.6 billion crowns (nearly $1.2 billion), which is associated with an impairment loss of 9.6 billion crowns (more than $1.3 billion) recognized in connection with plans to sell the Russian business.
“Global uncertainty remains high and growing pressure on production costs will be a particular challenge for us in the coming quarters. Under these circumstances, we will continue to seek the right balance between mitigating short-term challenges and investing in long-term opportunities,” Carlsberg CEO Sies’t Hart wrote in a commentary on the report.
On March 10, Carlsberg Group announced the cessation of production and sale of Carlsberg beer in Russia. The company also stopped investing in and exporting to Russia and stopped advertising in the country’s market.
March 28 Carlsberg Group Brewing Corporation made a decision withdraw completely from the Russian market. The company apologized to its 8,400 employees in Russia. Prior to the completion of the deal, Carlsberg said it would continue to operate with restrictions and would support employees and their families.
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