TURKEY: Anadolu Efes' beer struggles continue in H1
- H1 pro-forma EBITDA falls 11.3% to TRY810.7m (US$408.9m)
- Pro-forma net sales up 2.5% to TRY4.56bn
- Group volumes up 4.7% on pro-forma basis
The company is facing challenges with its beer operations
Anadolu Efes has reported a double-digit drop in first-half domestic and international beer volumes but its bottom line continues to benefit from consolidating Coca-Cola Icecek into its results.
EBITDA in the six months to the end of June jumped by 52.8% to TRY810.7m (US$408.9m), the Istanbul-headquartered group reported yesterday (22 August). Net sales in the period were up 103.7% to TRY2.2bn, while volumes leapt 186.4% to 42.5m hectolitres.
On a pro-forma basis, however, Efes said first-half EBITDA fell by 11.3% to TRY810.7m, while sales were up by 2.5% to TRY4.56bn. Group volumes rose by 4.7% on a pro-forma basis.
However, the company's beer operations still face difficulties. In its domestic market of Turkey total beer volumes fell 14% in the six months, while sales dipped by 1.5% to TRY833.1m. Earnings from its domestic beer operations fell by 20% to TRY254.9m. Efes said its volumes were impacted by a new government alcohol crackdown, which started in May.
The company's international first-half beer volumes fell by 10.4% to 9.2m hectolitres, while sales dropped 12% to 680.7m. Profits from the group's international unit dived by 35.7% to TRY79.9m. Russia, which accounts for 65% of its international volumes, was affected by higher pricing and a tightened regulatory environment, the group said.
Since 1 January, Efes has fully consolidated Coca-Cola Icecek into its results. The Coca-Cola bottler, which operates Efes' soft drinks operations, reported strong results this week which boosted Efes performance.
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