Anadolu Efes swings to profits in Q1

Anadolu Efes swings to profits in Q1

Anadolu Efes swung to net profits in the first quarter of 2010, but weaker demand for beer caused a fall in sales for the period.

Lower demand for beer in the Turkey-based firm's domestic market was the main reason for a 1.3% drop in net sales for the three months to the end of March, said Anadolu Efes yesterday (11 May). Sales were TRL753.7m (US$493m) versus TRL763.8m in the same period of 2009.

Group beer sales by volume, including the Efes Breweries International business, rose by 2.4% to 4.5m hectolitres.

An 8.6% rise in soft drinks volume sales helped the firm, which bottles The Coca-Cola Co's drinks in Turkey via Coca-Cola Icecek, to report a total volume sales rise of 5% for the three months.

Anadolu swung to net profits of TRL71.5m for the quarter, compared to losses of TRL25.2m in 2009.

"Despite lower operating profitability due to the challenges in all business lines in 1Q2010, thanks to the
appreciation of local currencies, the turnaround in bottomline was achieved as a result of lower financial expenses and non-cash F/X gains in the first quarter," said the firm.

Operating profits fell by 37% to TRL77.6m, largely due to lower profitability in beer, the group said.

For the full announcement, click here.