The withdrawal from Russia and the nationalization of the business by the Kremlin resulted in billions in losses for the brewery group Carlsberg. He once owned the largest brewery in the country that is waging war against Ukraine.
The end of the Russian brewing business caused the Carlsberg Group to lose 40.8 billion crowns (5.5 billion euros) in the last financial year. As the annual report shows, the company recorded high depreciation.
A few weeks after Russia’s attack on Ukraine, Carlsberg announced its complete withdrawal from Russia. Carlsberg made the move in March 2022 and found a buyer for the business in the summer. A short time later, Russian President Vladimir Putin signed a decree nationalizing the Baltika breweries without the knowledge or consent of the Danes. Baltika is considered the largest brewer in Russia.
Sales increase
Sales rose year-on-year from 70.3 billion to 73.6 billion crowns (9.9 billion euros). That was an increase of 4.7 percent, as the company announced. The beer brewer increased its operating result by 5.2 percent in 2023, which was within the forecast range of four to seven percent.
Sales fell in various parts of Europe but rose about four percent in Asia. Beer consumption has been falling in markets like Germany for a long time. In the long term, the company expects annual sales growth of four to six percent. Operating profit is expected to grow organically by one to five percent, the company said.
Rising costs, higher revenues
“The performance of our premium segment, which exceeded expectations, and the results in our key markets in Asia underpin our strong starting point,” said CEO Jacob Aarup-Andersen. Thanks to a good financial situation, Carlsberg can invest more in growth initiatives and still achieve its goals. Rising costs can be offset by higher income and strict cost management.
Carlsberg claims to be the third largest brewery group in the world. In German-speaking countries it is represented by brands such as Astra, Holsten, Wernesgrüner, Duckstein and Lübzer.