Anadolu Efes (AEFES) Q4 2024 earnings summary

Executive summary

• Consolidated volume grew 0.9% in FY2024, with strong beer segment performance and market leadership maintained in key regions, while soft drinks volumes declined 2.2%.

• Beer volumes increased for the seventh consecutive quarter, up 8.4% year-over-year, driven by international operations, especially Russia.

• Net sales revenue was flat at TL 231,354.5 million for FY2024, with gross profit up 6.8% to TL 91,008 million and EBITDA (BNRI) down 4.6% to TL 39,364 million.

• Net income dropped 58.9% year-over-year to TL 13,117 million, and free cash flow declined 80.2% to TL 2,646 million, impacted by higher capex, interest expenses, and inflation.

• A dividend of TL 1.27 per share was proposed.

Financial highlights

• Beer Group FY2024 sales revenue rose 10.1% to TL 92,180 million, with gross profit up 12.7% to TL 42,340 million and EBITDA (BNRI) down 7.7% to TL 14,224 million.

• Beer Group net income fell 58.8% to TL 7,315 million; free cash flow down 14.5% to TL 6,134 million.

• Excluding TAS 29, consolidated revenue grew 50.4%, EBITDA (BNRI) up 38.2%, and net income up 19.7%.

• Net debt/EBITDA (BNRI) improved to 0.6x consolidated, with Beer Group in a net cash position of TL 1,482 million.

• Gross profit margin expanded to 39.3% (+243 bps); Beer Group gross margin 45.9% (+107 bps); EBITDA (BNRI) margin 17.0% (-86 bps).

Outlook and guidance

• Growth momentum expected in Türkiye post-Ramadan and during summer, with focus on premiumization, portfolio expansion, and operational efficiency.

• 2025 guidance: flat or modest beer market growth, revenue growth above inflation, and EBITDA growth in absolute terms, though margins may face pressure.

• Free cash flow generation and deleveraging remain key priorities; no Beer Group guidance for 2025 due to Russian uncertainty.

• Soft drinks guidance: mid-single-digit volume growth, with new plants in Iraq and Azerbaijan to become operational in 2025.

• Forward-looking statements highlight uncertainties due to market dynamics and macroeconomic factors.