Carlsberg CEO says Russia stole its business

By Steve Goldstein

"There is no way around the fact that they have stolen our business in Russia, and we are not going to help them make that look legitimate."

That's new Carlsberg CEO Jacob Aarup-Anderson, according to a Reuters account of a journalist call on Tuesday, after Russian President Vladimir Putin this summer ordered the seizure of Carlsberg's stake in its Baltika subsidiary. Earlier this month, Carlsberg ended license agreements that allow for its beers to be produced in the country.

According to the presidential decree, Carlsberg retains title to the shares in Baltika Breweries, but no longer has any control or influence over the company.

Carlsberg reported a 3% decline in organic volume growth, as a 6.3% slide in Central and Eastern Europe and a 5.2% decline in Western Europe was partly offset by a 1.5% rise in Asia.

The brewer said two-thirds of the volume decline was due to bad weather and another one-third due to consumer sentiment.

Organic revenue, however, rose by 5.8%, on price hikes. It kept its operating profit guidance for the year unchanged at 4% to 7% growth, and launched a new 1 billion crown stock buyback program.

Carlsberg said comparisons in the fourth quarter will be positive for China, against year-ago lockdowns, but the weak macro environment in Southeast Asia will continue to impact markets.

Carlsberg shares (DK:CARL.B) were steady on Tuesday but have dropped 8% this year.

-Steve Goldstein

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10-31-23 1024ET

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