Carlsberg joins rival Heineken in quitting Russia, faces big hit By Reuters

Carlsberg joins rival Heineken in quitting Russia, faces big hit By Reuters

© Reuters. 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 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 (OTC:) also announced on Monday it had decided to exit its Russian business at a cost of 400 million euros ($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 (OTC:) said. “Upon completion we will have no presence in Russia.”

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 19.2 billion Danish crowns by the end of 2021, which amounts to around 15% of total assets or 44% of its total equity, its annual report showed.

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