Turkish brewer Efes Breweries International has posted a drop in third-quarter profit as a result of increases in raw material costs.

For the nine months to 30 September, net profit dropped to US$15.8m from $44.7m in the comparable period last year, Efes said today (17 November).

Increased volatility and slowing economic activity in the company's operating markets had an impact on Efes' operating performance, dropping it to $52.1m from $81.4m in the previous year.

However, consolidated net sales revenue increased by 31.4% year-on-year, reaching US$861.1m. Net revenue per hl increased by 22.2% on the back of local currency price increases, strengthening of local currencies versus USD, EBI's reporting currency, and positive brandmix impact.

"While we managed our cost base to limit the impact of raw material cost increases on our profitability, the increased volatility and slowing economic activity in our operating markets, especially in the third quarter is visible in our operating performance," said Alejandro Jimenez, CEO and chairman.

"Although we still expect our sales volume growth to be ahead of the market growth in all operating markets in 2008, we expect the challenging conditions to continue in the fourth quarter of the year."