Research and Markets - Carlsberg Seek to Address Debt Incurred in Russia and Ukraine

    
DUBLIN, (informazione.it - comunicati stampa - cibi e bevande)

    

Carlsberg plans to pay half its earnings in the form of dividends, a move the Danish brewer hopes will keep company debt at less than two times earnings before interest, tax, depreciation and amortization. Excess cash will be distributed through extraordinary dividends and buybacks. Carlsberg is also cutting jobs at a number of breweries it intends to close. The company has experienced a steep decline in beer sales in Russia and Ukraine over the past five years.

The conflict in Ukraine, where Carlsberg own three breweries, has understandably led to a diminished market. A recent report found that the production of malt in the Ukraine dropped by almost 14% between 2014-2015, and brewers operating in the country are subject to strict excise duties. The report notes brewers are being forced to rethink their strategy, and how most products launched in 2015 fall into the discount or traditional beer sectors.   

Russia, where Carlsberg is the largest beermaker through ownership of Baltika Breweries, is struggling with a declining ruble, resulting in a shrinking beer market. Russian consumers' purchasing power in 2015 was seriously eroded compared to 2014, and there was a partial shift of low income consumers from the economy beer segment to home-made spirits, as stated in an industry report. The report states that beer markets continue to decline with economic conditions affecting purchasing power. Carlsberg may be required to manufacture new products more in line with low consumer buying trends if they wish to salvage this market.

Research and Markets - Carlsberg Seek to Address Debt Incurred in Russia and Ukraine

For further information on this topic, and a full list of all related documentation, please visit the Beer section at http://www.researchandmarkets.com/rm/NHIJ.

Source: http://www.bloomberg.com/news/articles/2016-03-16/carlsberg-to-distribute-half-of-earnings-in-form-of-dividends

About Research and Markets 

Research and Markets is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.

Research and Markets
Laura Wood, Senior Manager
[email protected]

For E.S.T Office Hours Call +1-917-300-0470
For U.S./CAN Toll Free Call +1-800-526-8630

For GMT Office Hours Call +353-1-416-8900
U.S. Fax: +1-646-607-1907
Fax (outside U.S.): +353-1-481-1716

Ufficio Stampa
 PR Newswire (Leggi tutti i comunicati)
209 - 215 Blackfriars Road
LONDON United Kingdom
Allegati
Slide ShowSlide Show
Non disponibili