Carlsberg Exits Russian Market

Carlsberg (CSE:CARLb) has finalized its exit from the Russian market by agreeing to sell its shares in Baltika Breweries. The sale, made to VG Invest—managed by two veteran Baltika employees—marks the end of Carlsberg's business operations in Russia.

Since July 23, Carlsberg's assets in Russia have been under state administration, affecting the company's stock price and not reflecting any business value.

The transaction includes the return of Baltika's minority interests in Carlsberg Azerbaijan and Carlsberg Kazakhstan, which comprise 9% and 10%, respectively. These strategic adjustments are part of the larger agreement with VG Invest.

The deal has received approval from both Russian and Danish authorities and is expected to close soon. Carlsberg will receive $320 million from the sale and will provide additional details about the financial ramifications in the 2024 Annual Report (AR).

Citi has analyzed the transaction, predicting that the cash inflow, along with diminished minority outflows, could possibly boost Carlsberg's 2025 consensus earnings per share (EPS) by low single digits (LSD). Citi considers this development to be a slight positive for Carlsberg’s stock, indicating a modest increase in investor confidence and financial performance.

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