Carlsberg AS has suspended its 2022 earnings steering and warned of potential impairments and writedowns amid the unsure enterprise influence of Russia’s battle with Ukraine and the potential oblique influence on the remainder of the group, it mentioned late Wednesday.
Russia and Ukraine accounted for round 13% of Carlsberg group income and 9% of working revenue in 2021, and whereas different markets are at the moment seeing solely a restricted enterprise influence, rising commodity and vitality costs will weigh, it mentioned.
“We don’t think about it prudent to offer steering for 2022 and are subsequently suspending our earnings steering for the 12 months,” Carlsberg Chief Government Cees ‘t Hart mentioned.
“The group’s property in each markets can also be topic to non-cash impairment and writedown,” he mentioned.
Carlsberg had guided for FY 2022 natural earnings earlier than curiosity and tax development of 0%-7% and a optimistic foreign money have an effect on of 250 million Danish kroner ($36.9 million).
Baltika Breweries, a part of the Carlsberg group, owns eight breweries in Russia and has round 8,400 staff there, representing a couple of in each 5 of its complete world workforce.
Carlsberg mentioned final week it might make no new investments in Russia and halt exports to the nation. It has since stopped all promoting by each the Carlsberg group and Baltika Breweries in Russia, and it’ll cease producing and promoting its Carlsberg beers within the Russian market.
“We really feel an ethical obligation to our Russian colleagues who’re an integral a part of Carlsberg, and who should not liable for the actions of the federal government,” Mr. ‘t Hart mentioned.
“Baltika Breweries will likely be run as a separate enterprise, with the aim of sustaining our staff and their households,” he mentioned.
Carlsberg mentioned it’s reviewing a full vary of strategic choices for its Russian enterprise and within the meantime will donate any earnings generated by the Russia enterprise to aid organizations, along with its beforehand introduced 10 million-euro ($11 million) donation to help humanitarian efforts in Ukraine.
Carlsberg owns three breweries in Ukraine and has greater than 1,300 staff there.
This story has been printed from a wire company feed with out modifications to the textual content
Supply: Live Mint