Arab Today, arab today carlsberg cuts 2000 jobs as russian beer market sours
Last Updated : GMT 18:19:32
Arab Today, arab today
Arab Today, arab today

Carlsberg cuts 2000 jobs as Russian beer market sours

Arab Today, arab today

Arab Today, arab today Carlsberg cuts 2000 jobs as Russian beer market sours

Carlsberg cuts 2000 jobs
Copenhagen - AFP

Carlsberg said Wednesday it was cutting 2,000 white-collar jobs as the Danish brewing giant tries to come to grips with a shrinking Russian beer market.

Estimating that "profit development of recent years has not been satisfactory," chief executive Cees ?t Hart announced "further steps to prepare the Carlsberg Group for the future".

Top among them are increasing organisational efficiency, which allow the brewer whose brands also include Tuborg and Grimbergen "to reduce white-collar headcount by approximately 2,000 employees", the company said in a statement.

The cull of 15 percent of white collar staff comes as it announced nearly 10 billion Danish kroner in restructuring charges and reductions in the value of its assets. Most were booked in the third quarter, pushing its net loss to 4.45 billion kroner (approximately 600 million euros, $640 million), compared to a profit of 2.10 billion one year ago.

Much of the charges were due to Carlsberg's Baltika (LSE: 0DSK.L - news) brewery in Russia, where the beer market has gone flat after the government took measures to tackle alcoholism, which have included a crackdown on marketing and banning the sale of beer in kiosks and late at night.

"We have now concluded that the difficult market challenges will persist for the next few years and, consequently, that the decline of the beer category will continue" in Russia, Carlsberg said.

Deliveries were down 18 percent compared to the same quarter last year.

While it still expects to turn operational profits in Russia, Carlsberg said it would need to restructure its production network and write down the value of assets to the tune of 5 billion kroner, part of which it booked in the third quarter.

Carlsberg also plans to take 4 billion kroner in charges in China, where it sees turning operational losses for the forseeable future as its local brands fail to perform as expected and efficiency improvements have remained elusive.

Despite the problems in certain markets, sales still increased by 1 percent to 18.3 billion kroner, which chief executive Hart called a "solid performance".

A 17 percent jump in sales for its premium brand Tuborg and a 16 percent for Grimbergen helped sustain overall sales growth.

Carlsberg said its streamlining efforts should deliver annual benefits of between 1.5 and 2.0 billion kroner by 2018.

The brewer's shares jumped 7.8 percent to 597.5 kroner in a market up 1.2 percent overall.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today carlsberg cuts 2000 jobs as russian beer market sours Arab Today, arab today carlsberg cuts 2000 jobs as russian beer market sours

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today carlsberg cuts 2000 jobs as russian beer market sours Arab Today, arab today carlsberg cuts 2000 jobs as russian beer market sours

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: اقتصاد دولي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday