Carlsberg Ukraine has reported substantial negative financial impacts, amounting to UAH 57 million including VAT (more than USD 1.5 million), as a consequence of the Russian invasion and occupation of certain regions within Ukraine.
The main contributing factors to these financial repercussions have been the deterioration and disappearance of retail equipment and kegs used by distributors operating in areas affected by occupation and ongoing hostilities. These losses have been mounting since the initiation of the full-scale invasion until April 2023, as reported by the Ukrainian Journal.
Carlsberg Ukraine acknowledges the possibility that the extent of damage to its fixed assets could be greater, particularly due to the ongoing limited access to inventory in several territories.
The disclosure report submitted by the company's management to the National Securities and Stock Market Commission for the first quarter of this year highlights the challenges faced by Carlsberg Ukraine.
In spite of the persistent obstacles, the Carlsberg Group has showcased its faith in the Ukrainian beer market through its announcement in June 2023 of investments totaling UAH 1.5 billion (USD 41 million) earmarked for Ukraine in 2023. One of the initial outcomes of this commitment is the establishment of a new production line at the Kiev brewery, set to boost the production capacity of canned products by 80% (inside.beer, 21.6.2023).