Carlsberg Exits Russia, Sells Baltika Breweries to VG Invest

Carlsberg announced that it has completed its exit from the Russian market by agreeing to sell its stake in Baltika Breweries. The sale to VG Invest, a local company run by two experienced Baltika employees, marks the end of Carlsberg's business venture in Russia.

The Danish brewer's assets in Russia had been under state management since July 23, 2023, a situation that caused the company's share price to reflect no value from this business.

The transaction also involves the return of Baltika's minority stakes of 9% and 10% in Carlsberg Azerbaijan and Carlsberg Kazakhstan, respectively, to Carlsberg. These strategic moves are part of a broader agreement with VG Invest.

Both Russian and Danish authorities have approved the deal, and the transaction is expected to close soon. Carlsberg will receive $320 million from the sale. The company stated that more information regarding the financial impacts of the agreement will be provided in the 2024 Annual Report (AR).

Citi assessed the potential financial effects of the deal on Carlsberg. The bank predicts that the combination of cash inflow and reduced minority exits will likely contribute low single digits (LSD) to the 2025 consensus earnings per share (EPS) estimates.

Citi considers this development to be slightly positive for Carlsberg shares, indicating a modest increase in investor confidence and financial performance.