Carlsberg, the Western brewer most exposed to the Russian market, anticipates a writedown of roughly DKK 9.5 billion ($1.39 billion) as a result of its decision to sell its operation there.
The company, which employs over 8,400 people and runs eight breweries in Russia, said late last month that it will sell its entire operation there, joining an exodus of Western companies following Russia’s invasion of Ukraine.
More than any other international brewer, the Danish multinational brewery business, which owns Russia’s most well-known beer brand Baltika, generates 9% of its overall revenue in the eastern European nation.
According to Carlsberg, the writedown was subject to a very high level of uncertainty and volatility and did not take into account any outside offers for the business. The company also stated that the transaction might take up to a year.
Additionally, Carlsberg disclosed a DKK 4 billion currency loss adjustment to its Russian business due to the weakening of the Russian rouble brought on by sanctions.