The Russian market remains "very difficult" and will not recover any time soon, the head of Carlsberg told CNBC as its third-quarter earnings were impacted by declining sales in the region.
"It's a very difficult market, as you know, we were in there for many, many years and there were strong hopes that things would improve," Cees 't Hart, the chief executive of Carlsberg Group, told CNBC Wednesday.
"But if you look at the coming 12 to 24 months, there is not a lot of expectations of growth. the market volume decline of 10 percent this year will probably continue for a number of percents next year."
The Danish brewer, that has long been struggling in Russia, said it would book $1.4 billion in impairment and restructuring costs and slash white-collar staff by 15 percent in a bid to return to growth. Investors cheered the restructuring with the share price rising more than 6 percent Wednesday morning.
Most of the 10 billion Danish crown ($1.44 billion) worth of the charges were booked in the third quarter, the company said. As a result it now expects its operating profit to decline by high single-digit percentages, compared to the growth it expected before.
Carlsberg has long faced problems in Russia and Ukraine, from where it derives over a quarter of its operating profit, but the company booked charges and said it would restructure its Chinese and British businesses also.