TURKEY: Anadolu Efes FY profit slides, sales climb
Andalou Efes has reported a slide in full-year net profit for 2008, despite an increase in sales.
The Turkish beverage company said yesterday (7 April) that net profit last year dipped by 17% on 2007, coming in at TRY309.7m (US$193.4m), although sales climbed by 21% to TRY3.67bn. In volume terms, sales rose by 9.2% to 37.8m hectolitres.
Operating profit struggled in the year, falling to TRY288.7m from TRY390.1m in 2007.
The company, which is the majority stakeholder in Efes Breweries International (EBI), said its net profit was negatively impacted by "the higher financial expenses on the back of increased financial indebtedness in soft drink and international beer operations as well as by the non-cash foreign exchange losses", which gained momentum in Q4 due to the devaluation of the US dollar versus local currencies.
"Due to the global macroeconomic challenges, we are adopting a more conservative outlook for the markets we are operating in," Anadolu Efes said. "We expect our sales volume in Turkey to grow by low single digits in 2009, due to the macroeconomic difficulties and a very strong base effect.
"On the other hand, in other operating countries, we expect to outgrow the beer markets we are operating in, while maintaining a flat sales volume."
Earlier this month, EBI said that its operating profit for 2008 fell by 8.6% on 2007, coming in at US$73.6m.
Coca-Cola Icecek, in which Anadolu Efes is the largest shareholder, said earlier this week that net profit in 2008 fell by 47% year-on-year to TRY81m (US$50.4m), due to "financial expenses generated by non-cash forex losses from forex denominated financial debt".
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