Danish brewery group Carlsberg said on Monday it is pulling out of Russia, hours after its competitor, Dutch brewing giant Heineken, did the same, citing Moscow’s ongoing war against Ukraine.
In a statement, the Copenhagen-based group said it had taken “the difficult and immediate decision to seek a full disposal of our business in Russia, which we believe is the right thing to do in the current environment.”
Carlsberg fully owns Baltika Breweries, one of the largest brewing concerns in Russia and the biggest exporter of Russian beer. The Danish brewer generates about 10 per cent of its sales in Russia, where it has about 8,400 staff who will be laid off.
The Danish brewer’s CEO, Cees ‘t Hart, said the decision means Carlsberg “will have no presence in Russia” and the business in its vast Russian market will no longer be included in Carlsberg’s revenue and operating profit. The business “will be treated as an asset held for sale until completion of the disposal.”
In 2021, Carlsberg reported revenue in Russia of 6.5 billion kroner ($1.2 billion Cdn) and operating profit in Russia of 682 million kroner ($126 million). The group said it will provide further details on the accounting impact of the planned disposal and the reintroduction of earnings guidance at a later date.
Any profits generated during the humanitarian crisis will be donated to relief organizations, Carlsberg said.
Business ‘no longer sustainable’ in Russia
In the Netherlands, Heineken said that its business in Russia “is no longer sustainable nor viable in the current environment. As a result, we have decided to leave Russia.”
The company said it is seeking an “orderly transfer of our business to a new owner in full compliance with international and local laws.”
Heineken will continue to pay its 1,800 staff in Russia through the end of the year. The company says it will not profit from the sale of its Russian operations and expects to take a 400-million euro charge as a result — about half a billion Canadian dollars.
Earlier this month, Carlsberg said it was immediately stopping new investments and exports to Russia with ‘t Hart saying then that the stop also includes exports from other Carlsberg Group companies to Baltika Breweries.
Russia and Ukraine are the two main markets for Carlsberg in central and eastern Europe.
Baltika Breweries was established in the Russian city of St. Petersburg in 1990 and is the leading exporter of Russian beer, with the company’s products offered in more than 75 countries, including western Europe, North America and the Asian Pacific region.
TORONTO – Restaurant Brands International Inc. reported net income of US$357 million for its third quarter, down from US$364 million in the same quarter last year.
The company, which keeps its books in U.S. dollars, says its profit amounted to 79 cents US per diluted share for the quarter ended Sept. 30 compared with 79 cents US per diluted share a year earlier.
Revenue for the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs, totalled US$2.29 billion, up from US$1.84 billion in the same quarter last year.
Consolidated comparable sales were up 0.3 per cent.
On an adjusted basis, Restaurant Brands says it earned 93 cents US per diluted share in its latest quarter, up from an adjusted profit of 90 cents US per diluted share a year earlier.
The average analyst estimate had been for a profit of 95 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
ST. JOHN’S, N.L. – Fortis Inc. reported a third-quarter profit of $420 million, up from $394 million in the same quarter last year.
The electric and gas utility says the profit amounted to 85 cents per share for the quarter ended Sept. 30, up from 81 cents per share a year earlier.
Fortis says the increase was driven by rate base growth across its utilities, and strong earnings in Arizona largely reflecting new customer rates at Tucson Electric Power.
Revenue in the quarter totalled $2.77 billion, up from $2.72 billion in the same quarter last year.
On an adjusted basis, Fortis says it earned 85 cents per share in its latest quarter, up from an adjusted profit of 84 cents per share in the third quarter of 2023.
The average analyst estimate had been for a profit of 82 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
TORONTO – Thomson Reuters reported its third-quarter profit fell compared with a year ago as its revenue rose eight per cent.
The company, which keeps its books in U.S. dollars, says it earned US$301 million or 67 cents US per diluted share for the quarter ended Sept. 30. The result compared with a profit of US$367 million or 80 cents US per diluted share in the same quarter a year earlier.
Revenue for the quarter totalled US$1.72 billion, up from US$1.59 billion a year earlier.
In its outlook, Thomson Reuters says it now expects organic revenue growth of 7.0 per cent for its full year, up from earlier expectations for growth of 6.5 per cent.
On an adjusted basis, Thomson Reuters says it earned 80 cents US per share in its latest quarter, down from an adjusted profit of 82 cents US per share in the same quarter last year.
The average analyst estimate had been for a profit of 76 cents US per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 5, 2024.
