Jacob Aarup-Andersen took over the helm of beer giant Carlsberg on Friday.
Within days of joining, he bought nearly $1.6 million worth of company stock, a strategy that could send shockwaves of confidence through the market.
Aarup-Andersen bought 11,000 shares of Carlsberg shares listed on the Copenhagen stock exchange this month, a record have been seen wealth show.
While this may seem unusual, according to Aarup-Andersen, Aarup-Andersen made similar purchases at his previous company, facilities management provider ISS. Bloomberg Report.
Aarup-Andersen reportedly bought 35,000 shares of ISS shortly before leaving the company in March, boosting the company’s stock price and sending a green signal to the market about the company’s strength.
Many tech CEOs also bought shares of their own companies, following last year Technology Routwhich is a signal to investors to pay attention to the confidence of company insiders.
Orup-Anderson’s strategy appears to be working again. Shares in the Danish brewer open higher than Copenhagen’s OMX C25 benchmark index in Wednesday’s trading.
Carlsberg did not immediately return wealthrequest for comment.
Uncertainty over Carlsberg’s Russian business
Aarup-Andersen takes the top job at a time when Carlsberg has been grappling with uncertainty over its Russian operations.
Its Russian branch, the Baltic Brewery, produces one of the country’s best-selling beers.
However, despite having 8,000 employees across eight breweries, the company decided to sell its business following Russia’s invasion of Ukraine. But before the sale was completed, the Kremlin took control of the Baltic in July.
In a statement last month, then-CEO Cees’t Hart said he “ShockHe believes the move is targeting companies from “unfriendly countries”.
In extreme cases, Hart said he fears Baltika could even be nationalized by the Kremlin, since Carlsberg has lost control of the business.
A Carlsberg spokesman told wealth In August, the company’s presence in and around Russia remained significant as it stretched back more than three decades.
“The Russian business is highly integrated with the rest of the company, particularly in Central and Eastern Europe, and we have been working hard to resolve this over the past year as part of our sales process,” the spokesperson said.
In the case of Carlsberg, despite volatility in its Russian entity, it continues to post strong earnings through the first half of 2023. Compared with the same period last year, the group’s revenue in the first six months increased by 11.2%, and its operating profit increased by 5.2%.
The company also raised its profit forecast for the year to 7% from an earlier lower forecast.
Authorization of Orup-Anderson
Aarup-Andersen was ISS CEO for three years before joining Carlsberg, succeeding Hart.
He oversaw the company’s financial turnaround and helped the company grow during the COVID-19 pandemic. Orup-Anderson also focused on investing in his earlier role.
At Carlsberg, his job will be to find new room for growth for the brewer as it looks beyond its lucrative Russian business.
“I have been very impressed with the success of Carlsberg over the past few years,” Aarup-Andersen said in a statement. his date earlier this year. “I look forward to working with the team in the coming years to further accelerate the overall growth and value creation of this unique company.”
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