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Carlsberg boosts revenue in Russia in H1 2022 amid impairment loss from selling business
MOSCOW. Aug 17 (Interfax) – Carlsberg, owner of Baltika Brewing Company LLC in Russia, posted a contraction in sales on the Russian market in the first half of 2022 amid rising revenue, the Danish brewing concern said in a statement.
The company said that sales dipped 2%, while revenue rose 22% organically on the back of higher prices. Reported revenue rose 44% to 4.34 billion Danish kroner (around $593 million at the current exchange rate) owing to a stronger ruble. After-tax income increased to 944 million kronor despite significant growth in production costs, also supported by the strengthening ruble.
Net loss totaled 8.6 billion kroner owing to an impairment loss of 9.6 billion kroner recognized in connection with plans to sell the business.
Carlsberg’s net assets in Russia totaled 9.6 billion kroner at the end of June, having risen during the second quarter owing to the strengthening ruble and business dynamics.
Carlsberg announced in early March that it would halt new investments and exports to Russia, as well as stop the production of beer under its flagship brand of the same name; and that it would cease advertising on the Russian market. The company decided at the end of March to exit Russia.
Preparations for the deal are progressing well, Carlsberg said on Wednesday, though the task is complicated, as the Russian business has been part of the group for many years. The company has been implementing more than 150 projects in order to unwind the Russian business in preparation for the sale.
Carlsberg now classifies the Russian business as an asset intended for sale, and does not include its financials in its results, though does disclose them separately.
