Carlsberg's Russia Exit Leads to Billion Loss Despite Revenue Growth

In a year full of geopolitical twists, the Danish beer magnate Carlsberg suffered a significant financial blow. Despite a rise in revenue to 73.6 billion kroner, driven by global market activities, the politically enforced divestment of its Russian business units by a decree of the Russian President led to a monumental loss of 40.8 billion kroner. The figures, which are apparent from the freshly released annual report, reveal the costs for Carlsberg without the otherwise profitable Russian market, where they held a leading position with the Baltika brand. Carlsberg, known as one of the global giants of the brewing industry, had announced a complete withdrawal from Russia in the spring of 2022, shortly after the conflict in Ukraine began. The goal was the sale of the popular Baltika Breweries. As a glimmer of hope, a buyer emerged on the horizon in the summer, but the plans were thwarted by an unexpected intervention from the Kremlin: Putin nationalized the breweries without any prior indications or consent from the Danes. The retreat from Russia and the related write-offs countered the positive developments, such as the revenue growth of 4.7 percent and the sales increase in Asia by around 4 percent. While sales declined in some European markets, company leadership remains optimistic in the long term and forecasts an annual revenue growth of an ambitious 4 to 6 percent. Despite the challenges, the group demonstrates resilience and, strengthened by the dynamism of its Asian business, looks towards a confident future.