Danish brewer Carlsberg CARLb.CO suspended guidance on Wednesday 9 March due to uncertainty about the large Russian market and said that it had begun a strategic review of its business in the country.
"Highly Unpredictable"
"The future is highly unpredictable and we are reviewing a full range of strategic options for our Russian business," chief executive Cees 't Hart said in a statement. Last year, the company generated approximately 13% of its sales in Russia and Ukraine.
Hurt Results
The uncertain situation in both countries would hurt financial results for 2022, and its assets in both markets may also be subject to non-cash impairment and write-down, Carlsberg said.
Not "Prudent To Provide Guidance For 2022"
"Due to the very high uncertainty related to Ukraine and Russia and the possible indirect impact on the rest of the group, we do not consider it prudent to provide guidance for 2022," 't Hart said.
Tough Competition
Carlsberg has struggled with tough competition in Russia, its main Eastern European market, since it took control of Baltika, the country's largest beer brand, in 2008.
Halted Operations
It halted operations at its three breweries in Ukraine last month, after Russia began a military invasion of the country that Moscow has called a "special operation."
Breweries In Russia
Carlsberg would keep operating its eight breweries in Russia, where it has approximately 8,400 employees, although it would cease all advertising and stop selling its flagship Carlsberg beer brand.
New Investment Into And Exports To Russia
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