Biden calls for an additional $33 billion in Ukraine aid
Danish beer giant Carlsberg A/S has announced it will restart production in Ukraine, after closing its factories there following the Russian invasion.
Carlsberg, the world’s third-largest brewer, is among the Western companies most exposed to Russia and Ukraine.
On Thursday, the company reported a 50% drop in first-quarter volumes in Ukraine after March sales evaporated after a strong start to the year. “We had a good start, then it was zero,” general manager Cees ‘t Hart said in an interview.
Mr Hart said the brewer was now reopening its factories in Kyiv and Lviv after employees said they wanted to return. “We are not at full capacity at all but there are orders coming in from our customers,” he said.
Ukraine generates around 3% of Carlsberg’s earnings before interest, taxes, depreciation and amortization, while Russia accounts for around 5% of its Ebit.
The company said it was looking for a buyer for its Russian operations and recently announced a $1.39 billion writedown related to its decision to leave the country. In the meantime, Hart said Carlsberg would maintain operations in Russia to protect the livelihoods of its 8,4000 employees in the country.
His comments come as the brewer announced a 9.1% increase in first quarter volumes on an organic basis, which excludes the effects of currencies and mergers and acquisitions.
However, Mr Hart said volumes had fallen in Poland, which he attributed in part to a drop in sentiment amid the war in neighboring Ukraine.
“Polish society didn’t celebrate life much from February 24, it focused on helping Ukrainian refugees,” he said.