TURKEY: Anadolu Efes sees nine-month profits fall
- Nine-month net profits drop by 32.4% to TRL326.4m (US$184.3m)
- Net sales rise by 13.3% to TRL3.73bn
- Operating profits slip by 8.6% to TRL560.7m
- Sees ongoing weak demand for beer in Turkey and Russia
Anadolu Efes has reported a fall in nine-month profits, despite selling more beer and soft drinks than in the same period of last year.
Net profits for the nine months to the end of September fell by 32.4%, to TRL326.4m (US$184.3m), Anadolu Efes said at the end of last week. The group was largely hit by higher operating costs in beer, weaker demand for beer in the key markets of Russia and Turkey and foreign exchange losses.
Group operating profits fell by 8.6% to TRL560.7m. Despite pressure on profits, the Efes lager brewer reported net sales up by 13.3% on the same period of 2010, to TRL3.73bn.
Higher beer prices in Turkey helped to offset a volume sales decline, following a tax hike, while the group's soft drinks business, Coca-Cola Icecek, performed well throughout the period in most of its key markets. Anadolu Efes' total volume sales increased by 5% for the nine-month period.
Full figures for the third quarter were not released, but the firm said that operating profits for the three months fell by 19% to TRL221.1m. For the period, beer sales by volume slipped by 1.5% in Turkey and by 5.3% in the group's international beer business, although net beer sales rose in both divisions, by 7% and 2.8% respectively.
In its outlook, Anadolu Efes said that it expects consumer demand for beer to remain weak in both Turkey and Russia for the remainder of 2011.
For the company announcement, click here.
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