Carlsberg returns to profit as sale of Russia subsidiary completes

Danish brewer Carlsberg said Thursday that it returned to profit in 2024 thanks in part to completing the sale of its Russian subsidiary.

Like many Western companies Carlsberg sought to pull out of Russia after it invaded Ukraine in February 2022, but it was only in December 2024 that it was able to complete a sale of the Baltika brewery.

The amount of the transaction was not disclosed in December, but the company's annual statement indicated that Carlsberg received 2.3 billion kroner (£258 million) for Russia's largest brewer.

Carlsberg, the world's fourth-largest beer group, posted a net profit of 9.1 billion kroner for 2024, after having posted a loss of 40.8 billion kroner in 2023, due in large part to Moscow having seized Baltika.

Sales rose by two percent to 75 billion kroner, just surpassing the analyst forecast of 74.98 billion kronor established by Bloomberg.

Sales volume remained stable at 101 million hectolitres.

Carlsberg is targeting an increase of one to five percent in operating profit.

“Given the challenging environment in some of our major markets, which impacted the volume development, we’re satisfied with our solid 2024 results,” Jacob Aarup-Andersen, chief executive, said.

“The commitment and passion of our people and the resilience of our business enabled us to deliver top-line growth, increase commercial investments and achieve organic operating profit growth at the high end of our guidance, which we upgraded in August.”

2024 has been a year of major events for Carlsberg, with the acquisition of Britvic, the buyout of its partner in India and Nepal and the expanded partnership with PepsiCo in Kazakhstan and Kyrgyzstan.