TURKEY: Anadolu Efes boosted in H1 by SABMiller Russia tie-up

• H1 net profits up by 39% to TRY348.1m (US$190.6m)
• Net sales rise by 40.5% to TRY3205.8m 
• Operating profits up by 35% to TRY458.3m 
• Beer volumes boosted by newly-acquired SABMiller operations in Russia and Ukraine

Anadolu Efes has reported a jump in first-half profits as its beer operations got a boost from a strategic tie-up with SABMiller in Russia. 

Net profits in the six months to the end of June leapt by 39% to TRY348.1m (US$190.6m), the Turkey-based drinks group said on Tuesday (28 August). Sales in the period rose by 40.5% to TRY3205.8m.

Operating profits were up by 35% to TRY458.3m. 

Overall group volumes in the six-month period rose by 18.9% year-on-year to 26.1m hl, due to "higher soft drink sales" and increased beer volumes "mainly due to the contribution of the newly-acquired SABMiller operations in Russia and Ukraine", the group said. 

Anadolu Efes' domestic beer volumes grew by 5.4% in the period, despite bad weather and higher retail prices, the company said. Sales were up by 19.7% to TRY846.1m, leading to EBITDA hitting TRY318.7m, a rise of 8.8%.  

Earnings from international beer sales rose 60% to TRY124.3m. 

Looking ahead for its beer operations, the group said it expects domestic volumes to grow at a "low single-digit level". Internationally, the group said it expects net sales to grow at around 70% this year, outpacing volume growth, due to the merger in Russia.

However, the group warned: "We maintain our estimate for the Russian beer market at low-to-mid single digits rate decline due to higher prices as a result of higher excise taxes and inflationary increases, in addition to new restrictions on beer selling & advertisement and unfavourable weather conditions." 

The group's soft drinks operations, run by Coca-Cola Icecek, saw volumes rise by 10.7% in H1, leading to an increase in EBITDA of 45.4% to TRY325.5m. 

To view the company's full statement, click here