Heineken and Carlsberg have announced plans to exit their operations in Russia and take “substantial” impairment charge to their businesses.
Dutch group Heineken is set to transfer its business to a new owner, which it said would cost it €400mn in a non-cash impairment charge.
Danish rival Carlsberg said it would “seek a full disposal” of its operations in Russia, and would also face a “substantial” charge.
Heineken employs 1,800 people in Russia and makes 2% of global sales in the country.
Carlsberg has more exposure to the market, making 9% of revenue in the country and employing 8,400 staff.
Both companies will continue to pay staff, with Heineken committing to doing so until the end of the year. Carlsberg said it “deeply regret[s]” the consequences of the decision for its Russian employees.
Heineken said its ownership of the business in Russia “is no longer sustainable nor viable in the current environment. As a result, we have decided to leave Russia.”
It added: “We will not profit from any transfer of ownership and we expect an impairment and other non-cash exceptional charges of approximately €400mn in total.”
Carlsberg said its business in Russia “will be reassessed at a fair value, which will result in a substantial non-cash impairment charge”. From an accounting perspective, its Russian business would be treated as an “asset held for sale until completion of the disposal”, it added.
The company said it would give more details on the accounting impact of the sale and the reintroduction of earnings guidance, which it suspended earlier this month, at a later date.
Anheuser-Busch InBev, the world’s largest brewer and maker of brands including Budweiser, continues to manufacture and sell in Russia.
