Carlsberg
Assets
Performance indicators
2023: Loss of $7 billion due to curtailment of business in Russia
Carlsberg's losses from the termination of operations in Russia amounted to 47.75 billion Danish crowns (about $7 billion). The brewing concern announced this in its reporting for 2023, which was published on February 7, 2024.
From the materials of Carlsberg it follows that the impairment loss on Russian assets amounted to 7 billion Danish crowns ($1 billion). In addition, the concern reflected accumulated losses from currency translation and hedging from 2004 to 2023. in 41.5 billion Danish crowns ($5.98 billion).
In 2023, the net loss of the Carlsberg group amounted to 40.8 billion Danish kronor (about $5.9 billion), compared with 1.1 billion kronor losses a year earlier, according to the reporting materials. Excluding write-offs related to Russian business, as well as other one-time expenses and revenues, the company made an annual net profit of DKK 7.4 billion.
The consolidated revenue of Carlsberg Group in 2023 increased by 4.6%, increasing from 70.3 billion Danish crowns to 73.6 billion.
Earlier, Carlsberg reported the write-off of assets related to Baltika. Thus, in the reporting for nine months of 2023, it was noted that after the transfer of the Russian brewing company to the management of the Federal Property Management Agency, the investments associated with it no longer fall under the accounting definition of investments in equity capital, therefore they were reclassified into receivables to the Russian government. That, in turn, was completely written off, and the total amount of write-offs reflected in the net result of operations in Russia amounted to 7 billion crowns - about 92 billion rubles.
In July 2023, by decree of Russian President Vladimir Putin, Carlsberg's share in Baltika was transferred to state administration. According to Carlsberg, in accordance with the presidential decree, the company retains ownership of Baltika shares, but no longer control this brewing company and cannot influence management decisions. As a result of the loss of control over Baltika, investments in this enterprise were completely written off, Carlsberg added.[1]
2021
2020: Global Beer Market Share - 6.1%
At the end of 2020, Carlsberg occupied 6.1% of the global beer market (data from Euromonitor International UK). Read more here.
History
2024: Baltika files lawsuit against Carlsberg subsidiaries demanding damages of more than $900 million
At the end of March 2024, the Russian company Baltika filed a lawsuit against Carlsberg subsidiaries demanding compensation for damage in the amount of more than $900 million.
2023
Termination of licenses for the sale of beer under the company's brands in Russia
Carlsberg in October 2023 announced that it was ending all licensing agreements for the sale of its beer brands in Russia, saying it saw no way out of the crisis through negotiations after its assets were seized by the state.
The Copenhagen-based company said it would no longer allow Baltika, a Russian company, to manufacture, promote and sell products from the Carlsberg group.
Russian authorities transfer Carlsberg assets in the country to the government for temporary management due to similar actions of Western countries against Russian companies
In April 2023, Russian President Vladimir Putin signed a decree allowing the state to take under "temporary" control the assets of companies or individuals from "unfriendly" countries. This was a retaliatory step towards sanctions that froze the assets of Russian companies abroad.
Some Western companies in preliminary talks with buyers were not concerned about the decree, although they would have. Danish beer maker Carlsberg A/S was preparing for sale within a year of the outbreak of the conflict in Ukraine, fencing off its Russian division. The company has whittled down a long list of interested bidders. Before the war, the value of the business was about $3 billion; it accounted for almost 10% of Carlsberg's global revenue, and eight breweries in Russia employed more than 8,000 people.
In June 2023, Carlsberg said it had found a buyer for the business, subject to regulatory approval. The Russian Ministry of Finance gave unofficial consent to the sale of the company to the Arnest group, a Russian manufacturer of metal cans, which was not affected by Western sanctions. A month later, Carlsberg executives were shocked to learn from Russian news that Vladimir Putin had signed a decree transferring their shares to the government for "temporary management."
The government chose 71-year-old Taimuraz Bolloyev, an old friend Putin from St. Petersburg, to lead the subsidiary of Carlsberg Baltika. From 1991 to 2004, he already served as general director of the Baltika plant (then Baltika Brewery Company OJSC).
Bolloyev is also chairman of the board of the St. Petersburg Judo Club, whose honorary president is Putin, and also owns a clothing company that has received contracts to supply uniforms for the Russian army.
The Kremlin increased pressure on Carlsberg in November 2023, when Russian authorities arrested two of its top executives on fraud charges. In January 2024, one of them was transferred to house arrest; the status of both men as of September 2024 is unclear. The company wrote off $2.5 billion.
Plan to sell business in Russia until the middle of the year
Carlsberg plans to sign an agreement to sell its business in Russia by mid-2023.
2022: Decision to sell business in Russia, losses of $1.18 billion
Carlsberg's costs from operations Russia in the first half of fiscal 2022 amounted to 8.6 billion the Danish crowns ($1.18 billion) due to asset impairment of 9.6 billion Danish crowns ($1.31 billion). The beer manufacturer announced this in its statements published in mid-August 2022.
According to the materials, excerpts from which RIA Novosti cites, Carlsberg's revenue in Russia in the first half of 2022 increased by 44% to 4.34 billion Danish crowns (approximately $595 million) to strengthen the ruble exchange rate. Profit amounted to 944 million Danish crowns (almost $130 million).
Carlsberg Russian announced its withdrawal from the market in March 2022. Shortly before that, production in Russia was suspended, new investments were frozen and exports to Russian breweries were stopped. At the end of April 2022, it became known that a possible buyer of the Baltika brewing company could be the Turkish Anadolu Efes AB InBev Efes-controlled.
Despite the loss-making first half, the company confirmed its own forecast for the end of 2022 and expects profit growth. In addition, the company announced another round of share buybacks worth up to 1 billion kronor (135 million euros).
{{quote 'We are very pleased with the high results for the first half of the year in light of the serious problems associated with military operations in Ukraine, rising commodity and energy prices, as well as the pandemic, - commented on the financial results of Carlsberg CEO Kees'T Hart. }} In the first half of 2022, Carlsberg's net loss amounted to DKK 5.28 billion, which the company associated with expenses in Russia, Ukraine and Central and Eastern Europe. Excluding these expenses, the company recorded a net profit of 5.06 billion kronor.
The Danish brewery said the decision to sell its business in Russia, made against the backdrop of Russia's special operation in Ukraine, will lead to a write-off of about 9.5 billion kronor ($1.4 billion). The company received 10% of its income and 6% of its operating profit in Russia in 2021. The company also said it expects an impairment loss of K300 million in Ukraine, as well as a reputation write-off of K700 million for the Central and Eastern European region, which includes Ukraine.[2]
2021: Purchase of Russian brewing company Konix Brewery
On June 7, 2021, it became known about the sale Konix Brewery of the Carlsberg brewing company, which produces products under the brands Baltic"," Tuborg, etc. The transaction cost amounted to 150 million. rubles More. here
2017: Creating new beers with AI
In December 2017, Carlsberg announced the use of artificial intelligence (AI), which helps the Danish company create new beers.
The project, led by yeast fermentation specialist and director of the Carlsberg research group Jochen Förster, involves the use of high-tech sensors to accurately calibrate the finest shades and aromas of beer and create a "taste imprint" of each individual sample.
Artificial intelligence uses solutions Microsoft including a system machine learning and a digital cloud platform that have enabled Carlsberg to select and create new brewing yeast for the production of alcoholic and non-alcoholic beer, increasing the speed and quality of this work.
The development is used to study new microorganisms for brewing and eventually to create new beers.
The calculated research project, called The Beer Fingerprinting Project, was also joined by the iNano group from Aarhus University, chemical technologists from the Danish Technical University and the Danish Innovation Fund.
 | Developing a sensory platform has huge potential for broader research and makes new startups possible, says Jochen Förster. - Today, there is no rapid chemical analysis technology to identify the components that affect the taste characteristics of drinks, but we need it so that we can continue to produce beer of the highest quality and set brewing standards in Denmark and around the world. |  |
Carlsberg notes that every day the company creates 1000 different beer samples. This is enough for every Copenhagen resident to try more than two samples a year. Thanks to AI, the company has changed its approach to creating new beers.[3]
2015: Staff cuts due to decline in Russia
In November 2015, it became known that Carlsberg A/S plans to cut about 2 thousand employees of the company, trying to cope with a decrease in profits associated with a drop in demand in the Russian beer market.
This step is aimed at reducing annual costs by 2 billion Danish crowns ($288 million) by 2018, and in addition, the company will reduce personnel by 15%, the company notes.
Danish Carlsberg dominates the Russian beer market, but the depreciation of the ruble and high inflation led to a decrease in consumer spending.
Also, Carlsberg also cut its profit forecast for next 2016.
"Recognizingthe fact that profit performance has been unsatisfactory over the past years, we are preparing to take the necessary measures to prepare Carlsberg Group for the future," said the company's chief executive.
Carlsberg is looking to cut costs to boost its competitiveness amid its main rival, Anheuser-Busch InBev NV, which plans to take over SABMiller Plc in what will be the industry's biggest deal.
1,300 employees have already been notified of the upcoming layoffs, Carlsberg said in an official statement.
According to the results of nine months of 2015, Carlsberg's consolidated loss amounted to 2.665 billion kroons ($384.177 million) against a profit of 4.66 billion kroons ($671.76 million) a year earlier. Loss per share amounted to 19.7 kroons ($2.83) against profit of 27.8 kroons for January-September 2014. Revenue increased by 1.03% to 50.698 billion kroons ($7.308 billion).
According to the results of the third quarter, the company received a loss of 4,481 billion kroons ($645.96 million) against a profit of 2,248 billion kroons for the three reporting months of last year. Loss per share amounted to 29.5 kroons ($4.25) against profit in the 13.8 of kroons in the third quarter of 2014. Revenue increased by 0.97% to 18,296 billion kroons ($2.637 billion).
Carlsberg predicts a high level of decline in operating income.
In addition, Carlsberg is seeking a replacement for Jern Jensen, the company's former chief financial officer, who resigned in September 2015, after 15 years with the company. Moreover, the company is revising its strategy for the Russian market.
"Weconcluded that the difficult conditions of the Russian market will continue over the next few years and, therefore, the decline in demand for the beer category will continue. This will negatively affect the profits of our Russian business. As a result, an additional restructuring of our production network will be necessary, "follows from the message.
1962
1901
Notes
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