Anadolu Efes (AEFES) Q3 2025 earnings summary

Executive summary

• Consolidated sales volume grew 7.0% year-over-year in 3Q2025 and 7.5% for 9M2025, mainly driven by strong international soft drink performance, while Beer Group volumes declined, especially in Türkiye, due to inflation and affordability pressures.

• EBITDA margin expanded in 3Q2025, supported by improved gross profit and disciplined OPEX management, but EBITDA (BNRI) for 9M2025 declined 8.9% year-over-year.

• Free cash flow improved significantly in 3Q2025 to TL 9,417 million, with net debt to EBITDA at 1.5x as of September 30, 2025.

• Russian beer operations were excluded from consolidation and are now accounted for as a financial investment, resulting in a one-time gain.

• Strategic milestones included the launch of Mercan Rakı, a licensing agreement for Efes brands in Azerbaijan, and expansion into Uzbekistan.

Financial highlights

• 3Q2025 net sales revenue was TL 68,860.3 million (+3.8% YoY proforma); 9M2025: TL 188,622.5 million (-0.7% YoY proforma), reflecting the exclusion of Russian operations.

• EBITDA (BNRI) for 9M2025 was TL 33.3 billion, down 8.9% year-over-year; net income was TL 11.6 billion, down 23%.

• Gross profit margin improved to 40.4% in 3Q2025, but for 9M2025 was 37.3%, down 118 bps year-over-year.

• Beer Group revenue for 9M2025 was TL 41.4 billion, with EBITDA BNRI of TL 6.4 billion; Soft Drinks revenue was TL 145.2 billion, with EBITDA BNRI of TL 26.8 billion.

• Free cash flow surged 323% to TL 9,417 million in 3Q2025, but was negative for 9M2025 at TL -2,921 million.

Outlook and guidance

• Management expects continued pressure on domestic beer volumes due to inflation and affordability, while international soft drinks and beer operations are expected to sustain growth, especially in Central Asia and Iraq.

• Focus remains on free cash flow generation, cost and CAPEX optimization, and working capital improvements.

• Initial expectations for 2026 indicate a slow decline in inflation, with more detailed guidance to be provided towards year-end or early next year.