• Group nine-month pro-forma EBITDA falls 7.4% to TRY1.4bn (US$681.4m) 
  • YTD net sales up 3.9% to TRY7.4bn
  • Nine-month volumes pro-forma (beer and soft drinks) rise 4.5% to 69m hectolitres 
The company is being dragged down by new restrictions in Turkey and Russia

The company is being dragged down by new restrictions in Turkey and Russia

Anadolu Efes is continuing to struggle with the impact of new regulations in its key beer markets of Turkey and Russia, with year-to-date beer volumes down 13.5%. 

Group EBITDA, including soft drinks, on a pro-forma basis in the nine-months to the end of September fell by 7.4% to TRY1.4bn (US$681.4m). Sales in the period pro-forma rose by 3.9% to TRY7.4bn, while total volumes climbed by 4.5% to 69m hectolitres. 

In its domestic beer market of Turkey, volumes fell 13.1% in the nine months. The company pointed to the country's new restrictions on alcohol sales, introduced earlier this year

Nomura analyst Edward Munday said in a note: "Over the medium term, we have concerns that the regulatory environment, with the risk of higher-than-inflation tax increases, could hold back longer-term expansion."

Efes' international beer volumes on a reported basis in the nine months fell by 9.2% to 14.5m hectolitres. In Russia, where the firm has 14% market share, Efes pointed to higher pricing and the country's “tightened regulatory environment” as a reasons for the performance. Russia also introduced new laws on the selling and advertising of beer this year

Since January this year, Efes has fully consolidated Coca-Cola Icecek into its results. The Coca-Cola bottler operates Efes' soft drinks operations. 

As a result, on a reported basis, Efes' nine-month EBITDA jumped 71.7% to 1.4bn, while net sales were up 116.9% to TRY7.4bn. Total reported volumes rose 204.8% to 68.8, but beer volumes were still down 10%. 

To read the company's full statement, click here