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Carlsberg Q1 sales boosted by thirsty consumers, limited impact from Ukraine

COPENHAGEN (Reuters) – Danish brewer Carlsberg (OTC:CABGY) on Thursday reported first-quarter sales excluding Russia up 27% year on year, as post-pandemic consumers began drinking more expensive beer and limited impact from the war in Ukraine.

“The group had a strong start to the year, albeit Western Europe had easy comparables due to the extensive lockdowns last year,” CEO Cees ‘t Hart said in a statement.

“Looking at business performance, the first quarter saw only limited impact from the war,” he added.

Carlsberg along with rivals Anheuser-Busch InBev and Heineken (OTC:HEINY) have joined an exodus of Western companies from Russia amid pressure on Moscow to end its invasion in Ukraine.

The sale process of its Russian business, which last year generated 10% of its total revenue, could take up to 12 months, Carlsberg said.

“We will ensure an orderly divestiture process, Hart said, adding that operations in Russia will continue for now “to sustain the livelihood of the 8,400 Russian employees and their families.”

The world’s third-biggest brewer said sales in the quarter reached 14.9 billion Danish crowns ($2.10 billion), compared with 11.8 billion crowns a year earlier. The numbers did not include sales in Russia, where it has decided to divest its business.

Carlsberg left its full-year guidance for operating profit remained unchanged with a forecast at between minus 5% and plus 2%.

($1 = 7.0788 Danish crowns)

Source : Reuters

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