Carlsberg to focus efforts on flagging Russia market

A turnaround in Russia and a plan to return cash to shareholders were identified as key strategies by Carlsberg on Wednesday, as the ailing Danish brewer outlined plans to move the business forward.

The OMX-traded firm had struggled with declining profits in Eastern Europe for a number of years - particularly in Russia - where sanctions from the West, regulations on alcohol consumption and a worsening economy were putting pressure on Carlsberg's products.

Carlsberg claims its market share in Russia, one of the world's largest beer markets, is around 38%.

The group also announced a dividend payout ratio of 50% once a certain debt-to-earnings ratio was achieved.

Distributions would be in the form of buybacks or special dividends, though the board retained the right to use the cash for acquisitions should any suitable targets become apparent.

Chief executive Cees't Hart - in the chair since June last year - did indicate any major acquisitions were unlikely in the near term.

Hart had announced cost cutting measures last November, with an annual savings target of between DKK 1.5bn-2bn (£160m-£210m).