Danish brewer Carlsberg posted a loss of 40.8 billion kroner ($5.9 billion) for 2023 after Moscow took control of its Russian unit following the company's decision to sell the business and leave the country, AFP reported.
In June, Carlsberg announced that a buyer had been found for Baltika Breweries, which it has owned since 2000, but President Vladimir Putin later signed a decree allowing the state to take over the business.
Carlsberg CEO Jakob Aarup-Andersen later said Russia had "stolen our business". Moscow countered that the confiscation was legal.
A number of Western companies pulled their business out of Russia after Moscow's invasion of Ukraine. The United States and the European Union have imposed massive sanctions on Russia.
Russia was one of Carlsberg's biggest markets, accounting for nine percent of profits in 2021. The decision to leave the country has already pushed the company to a net loss of 1.06 billion kroner in 2022.
In October, Carlsberg announced that it had terminated licensing agreements with Baltika Breweries that allowed the local business to produce, market and sell Carlsberg products.
The Danish company said that Baltika will be able to use existing stocks and materials until April this year.
"We continue to take all possible actions, including legal ones, to protect assets and operations," Carlsberg said.
Although the loss of Baltika led to a drop in revenue, the Danish group reported a 4.7% increase in sales to 73.6 billion kroner, driven by price increases to offset higher costs due to growing inflation. /BGNES
