Anadolu Efes posted its Q1 results earlier this week

Anadolu Efes posted its Q1 results earlier this week

Yesterday, Turkish beer and soft drinks producer Anadolu Efes reported its figures for the first three months of the year. Here, just-drinks looks at the company's performance by category and by region.

Beer in Turkey

Anadolu Efe's beer volumes in its domestic market fell by 10.3% in Q1. As well as cycling tough comparatives (+8.8% in Q1 2012), the company blamed destocking and "adverse market conditions", such as poor weather.

Sales, meanwhile, were up by 5.1% in Turkey, partly thanks to two price rises - the first in September increased prices by 12%, while the second, a 2.7% lift in January, covered a 1.6% rise in beer excise in the country.

EBITDA from beer operations in the country fell by 13.1% year-on-year, as operating expenses increased markedly due to "continued new openings in on- and off-premise channels".

International Beer

Through its Efes Breweries International division, Anadolu Efes saw volumes of beer outside Turkey dip by 2.7%, on a reported basis. However, on a pro-forma basis, international beer volumes slumped by 23.1% with Russian operations taking the blame. The country, which accounts for 63% of the company's international beer volumes, has introduced regulatory changes to beer sales and advertising in recent months. At the same time, "our price increases were not immediately followed by competition", the company said.

Pro-forma sales from international operations dropped by 26% to US$237.9m as the average sales per hectolitre were hit by rising excise rates.

Operating losses from EBI jumped to $38.5m from losses of $2.6m a year earlier.

Soft Drinks

Anadolu Efes’ soft drink operations are run by Coca-Cola Içecek, in which Anadolu is the largest shareholder.

Pro-forma volumes rose by 19.9% from all soft drinks operations. In Turkey, volumes increased by 7.5%, with the sparkling category climbing by high-single digits and the still category remaining flat.

International volumes for soft drinks jumped by 43.2%, driven by Pakistan, Kazakhstan and Azerbaijan. Volumes in Iraq, meanwhile, soared by 215%.

Pro-forma net sales from soft drinks were up by 24.5% due to higher average pricing, particularly in Turkey and Central Asia.

Turkey accounted for 60% of all soft drink sales in the quarter, with international making up the remaining 60%.