• Nine-month net profits fall 85.9% to TRY444.3m (US$124.3m)
  • YTD net sales up 11.4% to TRY8.2bn
  • Operating profits rise 11.8% to TRY1.5bn
  • Nine-month volumes up 5.4% to 72.5m hectolitres 
Anadolu Efes strong soft drinks business is continuing to offset its struggles in beer

Anadolu Efes' strong soft drinks business is continuing to offset its struggles in beer

Anadolu Efes has a seen a double-digit rise in nine-month sales but continues to feel the impact of struggles in Russia and Ukraine. 

The Istanbul-headquartered brewer and soft drinks group, which is 24%-owned by SABMiller, said sales in the nine months to the end of September climbed by 11.4% to TRY8.2bn (US$2.3bn), while volumes grew 5.4%. Operating profits in the period were up 11.8% to TRY1.5bn. 

However, net profits slid 85.9% to TRY444.3m against a tough prior year comparable from the consolidation of Coca-Cola Icecek's numbers into its performance. 

In Q3, group sales were up 9.3% to TRY3.06bn, while operating profits climbed 6.7% to TRY607.4m. 

Damian Gammell, Anadolu Efes' CEO, said the performance was despite a “challenging” time due to “many economic and political developments” in its operating region, which includes Russia, Ukraine and Turkey. Its domestic market last year saw a major regulatory crackdown around the sale of alcohol

In the group's international operations, which includes Russia and Ukraine, third-quarter sales fell 10.7% to 318.3m, while volumes slid 11.5% to 4.6m hectolitres. 

In Turkey, Efes' Q3 domestic beer volumes rose for the first time since the second quarter of 2012, up 0.4%. Sales in the three months rose by 9.9% to TRY437.9m. 

In the group's soft drinks unit, run by Coca-Cola Icecek, Q3 sales jumped 13.7% to 1.9bn, while volumes rose 8.2% to 364.7m unit cases. Operating profits grew 6.8% to TRY374m.  

Looking ahead, Gammell concluded: "Although most of the existing issues remain unresolved, we expect to grow our consolidated volumes at a rate of mid-single digit with a flattish EBITDA margin by the year-end.” 

To read the company's full statement, click here