Carlsberg suspends guidance, warns of losses due to Ukraine crisis

Russia and Ukraine accounted for about 13% of Carlsberg Group’s revenue and 9% of operating profit in 2021, and while other markets currently see only a limited business impact, rising commodity and energy prices will weigh on, Said it.

“We do not consider it prudent to provide guidance for 2022 and therefore we are suspending our earnings guidance for the year,” said Carlsberg Chief Executive Officer Cece T Hart.

“Group assets in both markets may also be subject to non-cash impairment and writedowns,” he said.

Carlsberg had guided for a pre-interest and tax increase of 0%-7% in fiscal 2022 for organic income and a positive currency impact of 250 million Danish kroner ($36.9 million).

Baltica Breweries, part of the Carlsberg Group, owns eight breweries in Russia and has approximately 8,400 employees, representing one in five of its total global workforce.

Carlsberg said last week that it would not make any new investments in Russia and would halt exports to the country. It has since ceased all advertising of both the Carlsberg Group and Baltica Breweries in Russia, and will cease producing and selling its Carlsberg beers in the Russian market.

“We feel a moral obligation to our Russian allies who are an integral part of Carlsberg, and who are not responsible for the actions of the government,” said Mr. T. Hart.

“Baltica Breweries will be run as a separate business with the aim of sustaining our employees and their families,” he added.

Carlsberg said it is reviewing a full range of strategic options for its Russian business and meanwhile will support relief organizations from Russia, in addition to its previously announced 10-million-euro ($11 million) donation for humanitarian aid. Will donate any profits generated by the business. efforts in Ukraine

Carlsberg owns three breweries in Ukraine and has over 1,300 employees there.

This story has been published without modification to the text from a wire agency feed