Market Derating for PMI and Carlsberg Exceeds Financial Impact Despite FMCG Exodus From Russia

We are again lowering our fair value estimate for Carlsberg to DKK 910 from DKK 945 in light of the decision to exit Russia, but we are leaving other valuations across our European fast-moving consumer goods, or FMCG, coverage intact. Several companies have announced, over the last 24 hours, various exit strategies to dispose of their Russian assets. We expect this to destroy value for those companies that hitherto operated in Russia, but because it is a relatively low-margin market, write-downs in most cases are likely be limited to low single digits as a percentage of market capitalization.