Anadolu Efes (AEFES) Q1 2025 earnings summary

Executive summary

• Russian beer operations excluded from consolidation as of January 1, 2025, now accounted for as a financial investment due to external management imposed by Russian authorities.

• Consolidated sales volume grew 12% year-over-year, led by strong soft drink performance, while Beer Group volumes declined 0.7%.

• Net sales revenue declined 4.6% year-over-year to TL44,346 million, reflecting moderate price adjustments and inflationary pressures.

• Net profit fell 49.7% year-over-year to TL1,725 million, impacted by lower operational profitability and changes in consolidation scope.

• EBITDA (BNRI) dropped 25.1% to TL4,128 million, with margin contraction from increased marketing spend and cost pressures.

Financial highlights

• Gross profit margin declined 183 bps to 31.7% year-over-year; EBITDA (BNRI) margin fell 255 bps to 9.3%.

• Beer group gross margin expanded 384 bps to 40.3%, but EBITDA (BNRI) margin improved only 59 bps to -6.2%.

• Free cash flow was negative at TL16,831 million, reflecting seasonal working capital needs and greenfield projects in soft drinks.

• Net debt to EBITDA (BNRI) stood at 2.0x consolidated, 4.1x for beer group.

• Cash and cash equivalents at period end were TL27.6 billion, down from TL59.5 billion at year-end 2024.

Outlook and guidance

• No beer group guidance for 2025 due to Russian uncertainty; expect flat to modest market growth and aim to outperform in all geographies.

• Revenue growth targeted above inflation, with focus on pricing, mix, and premiumization; EBITDA growth expected in absolute terms but with margin pressure.

• Free cash flow expected to normalize and end the year near flat.

• Full-year 2025 guidance for soft drinks reiterated, with expectations of continued volatility and cost base normalization.

• Continued investment in digitalization, sustainability, and risk management to drive long-term value.