Interim / Quarterly Report • Aug 20, 2024
Interim / Quarterly Report
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Interim Operational Report as of 30.06.2024
Anadolu Efes Biracılık ve Malt Sanayii A.Ş. ("Anadolu Efes") carries out its business and operations across a broad region that includes Türkiye, Russia, members of the Commonwealth of Independent States (CIS), and Central Asian and Middle Eastern countries. Anadolu Efes is a subsidiary of AG Anadolu Group Holding A.Ş., one of Türkiye's biggest conglomerates, and is responsible for the conduct of Anadolu Group's operations in the beverages sector.
Anadolu Efes started out its business with two breweries that it opened in Türkiye back in 1969. Shortly, the company became the leader of the domestic beer market. Anadolu Efes runs its international beer operations through Efes Breweries International B.V. ("EBI"), its 100% subsidiary based in Netherlands. Anadolu Efes is also the main shareholder (50.3%) of Coca- Cola İçecek A.Ş. ("CCI"), which runs Coca-Cola operations in Türkiye and abroad.
Making almost two-thirds of its net sales in international markets, Anadolu Efes is Europe's 5 th and the world's 10th largest brewer1 by production volume. The Company has an enriched product portfolio of beer and soft drinks brands and operates in a wide geographic region together with its export markets serving to hundreds of millions worldwide. With 21 breweries, 5 malteries, 1 hops processing facility and 1 preform plant in 6 countries2 , and 33 bottling plants in 12 countries, including Turkiye among others, Anadolu Efes is operating as one of the most important players in its region. The company ships its products to more than 70 countries.
The composition of shareholders and their respective percentage of ownership can be summarized as follows:
| Share Amount (TL) | Share Ratio (%) | |
|---|---|---|
| AG Anadolu Grubu Holding A.Ş. | 254,891,157 | 43.05 |
| AB InBev Harmony Ltd. | 142,105,263 | 24.00 |
| Publicly-traded and other | 195,108,843 | 32.95 |
| Total issued capital | 592,105,263 | 100.00 |
As of 30.06.2024, Anadolu Efes has registered capital ceiling of TL 900,000,000, issued capital of TL 592,105,263. Company's capital is comprised of 592,105,263 shares each with a nominal value of 1 (one) TL. 142,105,263 of the shares are registered to and owned by AB InBev Harmony Limited, while 450,000,000 of the shares are bearer shares. Of Anadolu Efes' capital, 43.05% is held by AG Anadolu Group Holding A.Ş. and 24% is held by AB InBev Harmony Ltd, while 33% is publicly owned. AG Anadolu Grubu Holding A.Ş. (AGHOL.IS) is a publicly held company trading on the Borsa Istanbul (BIST).
1 The Barth Report 2022/2023
2 As of February 24, 2022, Anadolu Efes has suspended production activities at its Kharkiv factory in Ukraine. Currently, partial production continues at the Chernihiv and Mykolaiv factories.
*Direct and indirect total shareholding3
| ANADOLU EFES |
|||
|---|---|---|---|
| Beer Group President and Anadolu Efes CEO Onur Altürk |
Coca Cola Icecek CEO Karim Yahi |
||
| CFO Gökce Yanasmayan Efes Turkiye General Manager Tugay Keskin General Manager of the Russian Operations Ümit Ömer Öğün Efes Kazakhstan General Manager Ertan Kurt Efes Georgia General Manager Veli Dincel Efes Moldova General Manager Alphan Akpece Market Development Director |
Group Human Resources Director Banu Artüz Legal Affairs Director Melis Alkan Bölükbası Group Internal Audit Director Uluhan Kumru Group Information and Digital Solutions Director Murat Özkan Group Supply Chain Director Savaş Öztürk Chief Corporate Communications and Affairs Officer |
Chief Supply Chain Officer Kerem Kerimoğlu Chief Information and Digital Officer (CIDO) Aslı Kamiloğlu Chief Legal Officer Ertuğrul Onur South Asia and Middle East Region Director Ahmet Kürsad Ertin Caucasia and Central Asia Region Director Erdinç Güzel Turkiye Region Director Hasan Ellialtı |
Chief Audit Executive Ahmet Öztürk Chief Corporate Affairs and Sustainability Officer Burcun Imir Chief Financial Officer Erdi Kursunoğlu Chief Human Resources Officer Melis Tunaveli |
| Daniel Barbulescu | Selda Susal Saatci Chief Strategy, Insight and Innovation Officer Serim Yıldırım |
*Burak Gürcan has been appointed as Coca-Coca Icecek Chief Human Resources Officer, effective September 1, 2024.
3.1 Announcement Regarding Resignation of Independent Board Member (April 4, 2024):
Mr. Barış TAN has resigned from his duties of Independent Board Membership in Anadolu Efes on April 4th, 2024, within the framework of the Capital Markets Board regulations.
3.2 Announcement Regarding the Agreement Between William Grant & Sons (April 16, 2024):
Anadolu Efes has entered into an agreement with William Grant & Sons regarding the sales, marketing and distribution of William Grant & Sons' full range of products including whisky, liqueur and gin in Türkiye.
The distribution of these products will cover the entire country through imports, therefore there is going to be no need for additional capital expenditures in production lines for the time being.
Sales, marketing and distribution of the products will commence in the second half of the year.
As part of our strategy to diversify our portfolio into near-beer categories and capitalize on potential growth opportunities, this collaboration will broaden product range of our Türkiye operations with a moderate impact on volumes while expected to be margin accretive.
Our 2024 guidance shared on January 8th, 2024 does not include any incremental positive impact regarding this new business line.
William Grant & Sons is an independent family-owned distiller headquartered in the United Kingdom and founded by William Grant in 1887. Today, the Company is run by a professional management team. The Company distils, bottles, and distributes some of the world's leading brands of Scotch whisky, including the world's most-awarded single malt Glenfiddich, The Balvenie range of handcrafted single malts, and the world's third largest blended Scotch, Grant's. Alongside other iconic spirits brands such as Hendrick's Gin, Tullamore D.E.W. Irish Whiskey, Monkey Shoulder and Drambuie.
The Annual Ordinary General Assembly of Anadolu Efes was held on April 17, 2024 at 11:00 at the address "Fatih Sultan Mehmet Mahallesi Balkan Caddesi No:58 Buyaka E Blok Kat:1 34771 Ümraniye / İstanbul" with the previously announced agenda. The minutes of the meeting is available at our website at www.anadoluefes.com.
At the 2023 Annual Ordinary General Assembly Meeting of our Company;
Annual Reports of the Board of Directors and the Independent Audit Company as well as the Consolidated Financial Statements for calendar year 2023 have been discussed and approved. The shareholders were informed regarding the donations made by the Company and on any income and benefits obtained by granting collaterals, pledges and mortgages in favor of third persons in 2023.
To replace the released directors, the selection of TUNCAY ÖZİLHAN, KAMİLHAN SÜLEYMAN YAZICI, JASON WARNER, TUĞBAN İZZET AKSOY, RASİH ENGİN AKÇAKOCA, MEHMET HURŞİT ZORLU, BELİZ CHAPPUIE, İLHAMİ KOÇ (independent member), DİDEM GORDON (independent member), BEKİR AĞIRDIR (independent member) and LALE DEVELİOĞLU (independent member) as Directors of the Board for one year term has been approved.
The selection of the PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş. as the external audit company for the audit of the financial statements and reports for the year 2024 was approved. It has been decided to distribute a cash dividend of gross 2.35 TL (net 2.1150 TL) per each share with 1 TL nominal value amounting to a total of 1,391,447,368.05 TL realizing a 235% gross dividend distribution, calculated for the period January-December 2023 to be paid starting from May 28th, 2024.
Our Board of Directors resolved to appoint Mr. Tuncay ÖZİLHAN as the Chairperson of the Board of Directors and Mr. Kamilhan Süleyman YAZICI as the Vice-Chairperson of the Board, appoint Mrs. Didem GORDON as the Chairperson of the Audit Committee; Mr. İlhami KOÇ as a member of the Audit Committee, appoint Mr. İlhami KOÇ as the Chairperson of the Corporate Governance Committee and Mr. Mehmet Hurşit ZORLU, Mr. Burak BAŞARIR, Mr. Dr. Recep Yılmaz ARGÜDEN, Mr. Rasih Engin AKÇAKOCA, Mr. Tuğban İzzet AKSOY, Mr. Jason WARNER and Mrs. R. Aslı Demirel as members of the Corporate Governance Committee, appoint Mrs. Lale DEVELİOĞLU as the Chairperson of the Early Detection of Risk Committee and Mrs. Didem GORDON, Mr. Mehmet Hurşit ZORLU, Mr. Rasih Engin AKÇAKOCA and Mr. Ben GRAHAM as the members of the Early Detection of Risk Committee.
SAHA Corporate Governance and Credit Rating Services Inc. ("SAHA") hasincreased the Corporate Governance Rating of Anadolu Efes Biracılık ve Malt Sanayii A.Ş. ("Anadolu Efes") to 96.8 as of May 17, 2024.
The Corporate Governance Rating Report published by SAHA is available at our Company website www.anadoluefes.com.
| Main Sections | Weight (%) | Note | |
|---|---|---|---|
| Shareholders | 25 | 95.41 | |
| Public Disclosure & Transparency | 25 | 98.79 | |
| Stakeholders | 15 | 99.51 | |
| Board of Directors | 35 | 95.15 | |
| Total | 100 | 96.78 |
Investor Relations Unit, established within our Company's Finance and Investor Relations Directorate, continued to conduct the relations with our shareholders in the first six months of 2024.
Tel: 0 216 586 80 00 Fax: 0 216 378 91 93 e-mail: [email protected]
Tel: 0 216 586 80 72 Fax: 0 216 389 58 63 e-mail: [email protected] Licences: CMB Capital Market Activities Level 3 License and CMB Corporate Governance Rating Specialist License
Tel: 0 216 586 80 09 Fax: 0 216 389 58 63 e-mail: [email protected] Company representatives attended 6 roadshows/conferences (physical and virtual) that were intended to provide shareholders and investors with information about the company for the first six months of 2024. In the meantime, meetings took place with a total of 126 domestic and international institutional investors and shareholders, addressing the company's business results, performance, and other developments in the period.
The Corporate Governance Committee is responsible for monitoring the activities of the Investor Relations Unit of our company. Within this context, the Committee determines the standards for all announcements and main principles of investor relations, reviews these standards and principles and compliance with these every year, and gives necessary advices to the Board of Directors. The report that is prepared by the Investor Relations Unit regarding its activities and submitted to the Corporate Governance Committee at every meeting held by the Committee is also submitted to the Board of Directors by the Committee. In the first six months of 2024, two Committee meetings were held, whose dates are on 08.01.2024 and 29.02.2024. Corporate Governance Committee met once more on 08.02.2024 in order to execute duties of the Nomination Committee.
| Tuncay Özilhan Kamilhan Süleyman Yazıcı |
Chairperson Vice Chairperson |
Beliz Chappuie İlhami Koç |
Member Independent Member |
|---|---|---|---|
| Jason Gerard Warner | Member | Didem Gordon | Independent Member |
| Tuğban İzzet Aksoy | Member | Bekir Ağırdır | Independent Member |
| Rasih Engin Akçakoca | Member | Lale Saral Develioğlu | Independent Member |
| Mehmet Hurşit Zorlu | Member |
The Board of Directors were elected for a one-year term to serve until the General Assembly meeting where the activities of 2024 will be discussed, based on the discussions and voting results of the Ordinary General Assembly Meeting held on 17.04.2024.
The Board of Directors decision regarding the appointment of the new Board of Directors members elected at the General Assembly convened on April 17, 2024 to committees was resolved. Accordingly, the committees operating under the Board of Directors are formed of the members presented below:
| Audit Committee | Corporate Governance Committee | Committee for Early Detection of Risks |
|---|---|---|
| Didem Gordon (Chairperson) | İlhami Koç (Chairperson) | Lale Saral Develioğlu (Chairperson) |
| İlhami Koç (Member) | Mehmet Hurşit Zorlu (Member) | Didem Gordon (Member) |
| Burak Başarır (Member) | Mehmet Hurşit Zorlu (Member) | |
| Dr. Recep Yılmaz Argüden (Member) | Rasih Engin Akçakoca (Member) | |
| Rasih Engin Akçakoca (Member) | Ben Graham (Member) | |
| Tuğban İzzet Aksoy (Member) | ||
| Jason Gerard Warner (Member) | ||
| Refika Aslı Kılıç Demirel (Member) | ||
Fitch Ratings ("Fitch") has maintained Anadolu Efes' Long-Term Foreign-Currency Issuer Default Rating and Local Currency Issuer Default Rating at BB+ on Rating Watch Negative while affirming National Rating at AAA(tur).
The rating is supported by Anadolu Efes' resilient operating performance amid a challenging input cost environment, with strong financial results in 2023 and 1Q2024. Anadolu Efes' liquidity profile was evaluated as adequate, benefiting from its hard-currency cash balances.
As announced in April 2022, our Company and Anheuser-Busch InBev SA/NV ("AB InBev") have been in discussions regarding the acquisition of AB InBev's non-controlling interest in AB InBev Efes BV by Efes Breweries International BV ("EBI"). Subsequently, it was announced that the Parties have agreed on EBI's purchase of AB InBev's non-controlling interest in AB InBev Efes BV.
As formerly stated, the completion of the transaction was contingent upon obtaining the necessary regulatory approvals. The legal process was initiated on December 19, 2023.
Today, there have been news in the media indicating that the transaction was rejected by the regulatory bodies; however, we have not received any official response as such.
Any developments in this regard will be duly announced.
As announced in April 2022, our Company and Anheuser-Busch InBev SA/NV ("AB InBev") have been in discussions regarding the acquisition of AB InBev's non-controlling interest in AB InBev Efes BV by Efes Breweries International BV ("EBI"). Subsequently, it was announced that the Parties have agreed on EBI's purchase of AB InBev's non-controlling interest in AB InBev Efes BV.
As formerly stated, the completion of the transaction was contingent upon obtaining the necessary regulatory approvals. The legal process was initiated on December 19, 2023.
According to the notification received by our Company on August 7, 2024, the Russian regulatory authorities have not approved the current structure of the transaction. Consequently, Anadolu Efes and AB InBev are reviewing the authorities' decision. Updates will be duly announced.
In the interim, the business will continue to operate as usual under the management of Anadolu Efes.
JCR Eurasia Rating has affirmed Long Term National Issuer Credit Rating of Anadolu Efes as "AAA (tr)" and Short Term National Issuer Credit Rating as "J1+ (tr)" both represent the highest notations for rating; with "Stable" outlook.
JCR Eurasia Rating has also affirmed our company's Long-Term International Foreign and Local Currency Issuer Credit Rating as "BB+". The Outlook remained "Stable".
You can access to our 2023 Integrated Report through this link in our website.
Istanbul, August 20, 2024
I am pleased to announce that Anadolu Efes has delivered another strong quarter, demonstrating our resilience and agility in an increasingly challenging environment. Our robust volume performance not only exceeded expectations but also strengthened our positions across most of our markets. Despite the volatile cost landscape, we remained committed to implementing necessary pricing strategies while sustaining volume growth. Through strict management of operational expenses and effective use of risk management tools, we were able to partially offset the pressure on profitability, achieving a margin of 20.8% in 2Q2024. Even cycling a strong base and facing increased financing costs, our Free Cash Flow generation remained robust with very tight focus on capital expenditures and working capital management.
In our Russian beer business, after strong volume gains in the first quarter, we sustained this momentum with solid performance in this quarter as well, driven primarily by favorable market dynamics. Our performance outpaced the industry, with growth in premium, mainstream, near beer and non-alcoholic categories.
Last year was a high base, yet our Türkiye beer operations managed to deliver robust volume in an inflation-challenged environment. Consumer purchasing power was under pressure, leading to a deceleration in volume growth compared to the previous quarter. However, the overall momentum remains encouraging, supported by our diversified brand portfolio, strong market execution, and a favorable tourism season.
Our soft drink operations faced a challenging start to the year but demonstrated resilience throughout this period. Iraq and Azerbaijan made strong contributions to this quarter's performance, while Türkiye continued to achieve volume growth.
Amid a challenging operating environment and persistent economic headwinds, we remain confident in the resilience of our operations and the strength of our financial discipline. We are wellpositioned to achieve our goals and committed to continue delivering value to our stakeholders.
As stipulated by the decree of the Capital Markets Board, the financial statements for the 2Q2024 and 1H2024 have been presented in accordance with TAS29 (Turkish Accounting Standard 29: Financial Reporting in Hyperinflationary Economies), and retrospective adjustments have been made for prior periods in alignment with the same standard.
In this earnings release, certain financial items and metrics may be presented without inflation adjustment in order to ensure comparability to facilitate analysis of our performance relative to our FY2024 guidance. It is important to note that the financials presented without the impact of TAS 29 are unaudited. Please refer to our explanations on page 10 regarding the impact of TAS 29 on main P&L and balance sheet items.
Unless explicitly stated otherwise, all financial information disclosed in this release are presented in accordance with TAS 29.
| AEFES | 2Q2023 | 2Q2024 | Change % | 1H2023 | 1H2024 | Change % |
|---|---|---|---|---|---|---|
| Consolidated (TL mn) | ||||||
| Volume (mhl) | 35.5 | 36.4 | 2.5% | 62.7 | 63.9 | 1.9% |
| Net Sales Revenue | 63,737.0 | 60,508.3 | -5.1% | 108,652.0 | 107,731.2 | -0.8% |
| Gross Profit | 24,366.3 | 24,773.6 | 1.7% | 39,640.6 | 41,685.1 | 5.2% |
| EBIT (BNRI) | 10,186.6 | 9,832.9 | -3.5% | 13,533.3 | 12,802.1 | -5.4% |
| EBITDA (BNRI) | 13,312.2 | 12,581.6 | -5.5% | 19,817.4 | 18,557.5 | -6.4% |
| Net Income/(Loss)* | 5,961.9 | 3,955.3 | -33.7% | 9,241.2 | 7,359.8 | -20.4% |
| FCF | 8,982.7 | 8,981.4 | 0.0% | 2,604.9 | -499.4 | n.m |
| Change (bps) | Change (bps) | |||||
| Gross Profit Margin | 38.2% | 40.9% | 271 | 36.5% | 38.7% | 221 |
| EBIT (BNRI) Margin | 16.0% | 16.3% | 27 | 12.5% | 11.9% | -57 |
| EBITDA (BNRI) Margin | 20.9% | 20.8% | -9 | 18.2% | 17.2% | -101 |
| Net Income Margin* | 9.4% | 6.5% | -282 | 8.5% | 6.8% | -167 |
| Beer Group (TL mn) | 2Q2023 | 2Q2024 | Change % | 1H2023 | 1H2024 | Change % |
| Volume (mhl) | 10.1 | 10.8 | 7.1% | 17.3 | 18.9 | 9.3% |
| Net Sales Revenue | 24,239.1 | 23,563.8 | -2.8% | 40,481.5 | 41,130.0 | 1.6% |
| Gross Profit | 11,303.4 | 10,896.6 | -3.6% | 17,772.2 | 18,053.5 | 1.6% |
| EBIT (BNRI) | 3,335.9 | 3,154.3 | -5.4% | 3,298.8 | 2,820.3 | -14.5% |
| EBITDA (BNRI) | 5,410.6 | 4,356.1 | -19.5% | 7,147.0 | 5,542.8 | -22.4% |
| Net Income/(Loss)* | 4,102.3 | 2,367.9 | -42.3% | 5,663.2 | 4,152.8 | -26.7% |
| FCF | 7,204.5 | 7,382.8 | 2.5% | 6,077.4 | 3,022.6 | -50.3% |
| Change (bps) | Change (bps) | |||||
| Gross Profit Margin | 46.6% | 46.2% | -39 | 43.9% | 43.9% | -1 |
| EBIT (BNRI) Margin | 13.8% | 13.4% | -38 | 8.1% | 6.9% | -129 |
| EBITDA (BNRI) Margin | 22.3% | 18.5% | -384 | 17.7% | 13.5% | -418 |
| Net Income Margin* | 16.9% | 10.0% | -688 | 14.0% | 10.1% | -389 |
| CCI (TL mn) | 2Q2023 | 2Q2024 | Change % | 1H2023 | 1H2024 | Change % |
| Volume (mn u/c) | 448.0 | 451.3 | 0.7% | 800.6 | 792.7 | -1.0% |
| Net Sales Revenue | 39,314.7 | 36,600.2 | -6.9% | 67,988.3 | 66,118.8 | -2.7% |
| Gross Profit | 13,075.4 | 13,955.7 | 6.7% | 21,896.3 | 23,765.8 | 8.5% |
| EBIT | 7,000.3 | 6,895.9 | -1.5% | 10,419.5 | 10,377.5 | -0.4% |
| EBITDA | 7,955.0 | 8,318.5 | 4.6% | 12,723.8 | 13,157.5 | 3.4% |
| Net Income/(Loss)* | 4,500.6 | 5,408.1 | 20.2% | 7,948.2 | 8,352.2 | 5.1% |
| FCF | 2,156.8 | 3,015.6 | 39.8% | -3,207.4 | -2,360.5 | 26.4% |
| Change (bps) | Change (bps) | |||||
| Gross Profit Margin | 33.3% | 38.1% | 487 | 32.2% | 35.9% | 374 |
| EBIT Margin | 17.8% | 18.8% | 104 | 15.3% | 15.7% | 37 |
| EBITDA Margin | 20.2% | 22.7% | 249 | 18.7% | 19.9% | 119 |
| Net Income Margin* | 11.4% | 14.8% | 333 | 11.7% | 12.6% | 94 |
* Net income attributable to shareholders
| AEFES Consolidated (TL mn) | 2Q2023 | 2Q2024 | change% | 1H2023 | 1H2024 | change % |
|---|---|---|---|---|---|---|
| Volume (mhl) | 35.5 | 36.4 | 2.5% | 62.7 | 63.9 | 1.9% |
| Net Sales Revenue | 63,737.0 | 60,508.3 | -5.1% | 108,652.0 | 107,731.2 | -0.8% |
| Gross Profit | 24,366.3 | 24,773.6 | 1.7% | 39,640.6 | 41,685.1 | 5.2% |
| EBIT (BNRI) | 10,186.6 | 9,832.9 | -3.5% | 13,533.3 | 12,802.1 | -5.4% |
| EBITDA (BNRI) | 13,312.2 | 12,581.6 | -5.5% | 19,817.4 | 18,557.5 | -6.4% |
| Net Income/(Loss)* | 5,961.9 | 3,955.3 | -33.7% | 9,241.2 | 7,359.8 | -20.4% |
| FCF | 8,982.7 | 8,981.4 | 0.0% | 2,604.9 | -499.4 | n.m |
| Change (bps) | Change (bps) | |||||
| Gross Profit Margin | 38.2% | 40.9% | 271 | 36.5% | 38.7% | 221 |
| EBIT (BNRI) Margin | 16.0% | 16.3% | 27 | 12.5% | 11.9% | -57 |
| EBITDA (BNRI) Margin | 20.9% | 20.8% | -9 | 18.2% | 17.2% | -101 |
| Net Income Margin* | 9.4% | 6.5% | -282 | 8.5% | 6.8% | -167 |
* Net income attributable to shareholders
Anadolu Efes' consolidated sales volume recorded a solid growth of 2.5% in 2Q2024 compared to the same quarter of last year; reaching 36.4 mhl. Beer group contributed to overall growth with very strong volume performance registering 7.1% increase year-on-year; largely driven by strong performances in Russia and Türkiye. Soft drinks operations also showed a positive trend, rebounding from the previous quarter with a 0.7% growth. This recovery was fueled by robust performances in Iraq and Azerbaijan, also continued growth in Türkiye.
Consolidated net sales revenue was recorded at TL 60,508.3 million in 2Q2024; declining by 5.1% year-on-year. Despite efforts to drive revenue growth through strategic pricing, quality mix focus, and effective discount management, the decline was primarily due to the adverse effects of the mismatch between the inflation rate and the devaluation/appreciation of reporting currencies in international operations against the Turkish Lira due to the implementation of TAS 29. As a result, 1H2024 revenue reached TL 107,731.2 million, staying nearly flat compared to last year. Excluding the impact of TAS 29, the revenue growth was realized at 69.5% in 1H2024 while FX-neutral revenue was up by 32.6%.
Consolidated EBITDA (BNRI) declined by 5.5% to TL 12,581.6 million in 2Q2024; yet the margin was flat at 20.8%. Beer Group faced margin dilution, particularly in Russia, due to substantial year-on-year increases in raw material prices and transportation costs. However, this margin pressure in beer group was partially offset by the strong performance of Türkiye beer operations, which benefited from solid topline management and strict control of operating expenses. In soft drinks, there was solid expansion in margin driven by strong gross profitability especially in Türkiye operations. Thus, in 1H2024, consolidated EBITDA (BNRI) reached TL 18,557.5 million limiting the decline in margin in 1H to 101 bps. Excluding the impact of TAS 29, EBITDA (BNRI) expanded by 63.9% to TL 20,745.4 million while margin was at 19.6%.
Consolidated net income decreased from TL 5,961.9 million in 2Q2023 to TL 3,955.3 million in 2Q2024. The decline in net profitability was primarily due to increased interest expenses together with higher share of Turkish Lira borrowing and higher FX losses recorded from cash, mainly due to the appreciation of the local currencies against hard currencies. Yet, these impacts were partially mitigated by deferred tax income in 2Q2024 as a result of the implementation of TAS 29. Therefore, net income was reported at TL 7,359.8 million in 1H2024.Excluding the impact of TAS 29, net income would increase to TL5,093.4 million in 1H2024 fromTL3,280.6 million a year ago.
Anadolu Efes recorded a Free Cash Flow of TL 8,981.4 million in 2Q2024, cycling a high base of TL 8.982.7 million a year ago. The increase in cash generation is a result of strict working capital management with improvement in payables performance. As a result, Consolidated Net Debt to EBITDA (BNRI) was at 0.8x as of June 30, 2024; improving compared to 1Q2024-end.
| Beer Group (TL mn) | 2Q2023 | 2Q2024 | change% | 1H2023 | 1H2024 | change % |
|---|---|---|---|---|---|---|
| Volume (mhl) | 10.1 | 10.8 | 7.1% | 17.3 | 18.9 | 9.3% |
| Net Sales Revenue | 24,239.1 | 23,563.8 | -2.8% | 40,481.5 | 41,130.0 | 1.6% |
| Gross Profit | 11,303.4 | 10,896.6 | -3.6% | 17,772.2 | 18,053.5 | 1.6% |
| EBIT (BNRI) | 3,335.9 | 3,154.3 | -5.4% | 3,298.8 | 2,820.3 | -14.5% |
| EBITDA (BNRI) | 5,410.6 | 4,356.1 | -19.5% | 7,147.0 | 5,542.8 | -22.4% |
| Net Income/(Loss)* | 4,102.3 | 2,367.9 | -42.3% | 5,663.2 | 4,152.8 | -26.7% |
| FCF | 7,204.5 | 7,382.8 | 2.5% | 6,077.4 | 3,022.6 | -50.3% |
| Change (bps) | ||||||
| Gross Profit Margin | 46.6% | 46.2% | -39 | 43.9% | 43.9% | -1 |
| EBIT (BNRI) Margin | 13.8% | 13.4% | -38 | 8.1% | 6.9% | -129 |
| EBITDA (BNRI) Margin | 22.3% | 18.5% | -384 | 17.7% | 13.5% | -418 |
| Net Income Margin* | 16.9% | 10.0% | -688 | 14.0% | 10.1% | -389 |
*Net income attributable to shareholders
Beer group's consolidated volume continued its successful growth trend in the second quarter, achieving a 7.1% increase in 2Q2024, thanks to solid performances recorded in Russia, Türkiye and Moldova. This robust growth momentum resulted in beer group sales volume of 18.9 mhl in 1H2024, marking a yearon-year increase of 9.3%.
Building on a very strong performance in the first quarter, international beer operations' volume increased significantly by 8.2% in 2Q2024, reaching 8.9 million hectoliters; benefitting from Russia. As a result, 1H2024 volume reached 16.0 million hectoliters, representing a 10.1% year-on-year growth.
Russian beer operations continued to benefit from strong industry performance, registering lowteens growth in 2Q2024, while the industry growth was at mid-to-high single digits year-to-date. The overall industry performance was supported by a shift from other alcoholic beverages to beer, coupled with new product innovations and increased marketing initiatives. Our growth was primarily driven by strong performance in the premium and mainstream segments, as well as in the non-alcohol beer category. The low base from the previous year also contributed to the robust volume growth in Russia.
CIS countries' total volumes were under pressure during the period; declining by mid-single digits percentages on average. Moldova, on the other hand, achieved a strong mid-teens year-on-year growth in 2Q2024. This momentum was driven by growing industry, increased spending behavior, and an expanding consumer base in the country. Kazakhstan had lower volume performance; attributable to weak industry dynamics as a result of declining purchasing power and floods during the spring period. Down trading to more affordable segments was observed in the market. Georgia's volume was impacted by production bottlenecks, yet the performance is to be normalized through the end of the year.
In Ukraine, stabilizing consumer demand and a low-base drove sequential improvement.
Türkiye beer volume grew for another quarter, registering 2.8% increase in 2Q2024, despite cycling a strong growth of 20.6% in the same quarter of last year. The deceleration in growth rate compared to the previous quarter is mainly due to decline in consumers' purchasing power in a high inflationary environment. Yet, the volume momentum exceeded our expectations for the quarter also supported by improving sales volume in HORECA channel with the start of summer season. Türkiye beer volume reached 2.9 mhl in 1H2024, registering a solid 5.8% year-on-year growth.
Beer Group's sales revenue decreased by 2.8% to TL 23,563.8 million in 2Q2024. Despite strong volume performance, international beer operation's revenue declined by 6.8% to TL 16,713.6 million during the period, primarily due to a mismatch between the inflation rate and the devaluation/appreciation rate of international operation's reporting currencies against Turkish Lira. In Russia, even with a challenging pricing environment, net revenue per hectoliter was supported by smart pricing and a favorable brand mix. Meanwhile, sales revenue from Türkiye's beer operations grew by 9.4% to TL 6,794.9 million in the second quarter, driven by volume growth and price adjustments, offsetting the impact of increased trade campaigns amid heavy competition. All in all, Beer Group's revenue reached TL 41,130.0 million in 1H2024, marking a 1.6% increase. Excluding the impact of TAS 29, Beer Group's revenue reached TL 41,106.3 million in 1H2024, recording a growth of 73.9%, while constant currency increase was at 36.7%.
Beer Group's gross profit declined by 3.6% to TL 10,896.6 million in 2Q2024 with a gross margin dilution of 39 bps; reaching 46.2%. Türkiye beer operations recorded a margin expansion in the second quarter, driven by strong revenue growth and relatively moderate increases in raw material costs; thanks to favorable commodity prices and effective hedging strategies. Meanwhile, international beer operations recorded a decline, primarily due to pricing challenges in Russia amid significant cost increases associated with FX-linked raw materials. As a result, beer group's gross profit was reported as TL 18,053.5 million in 1H2024 with flat margin at 43.9%. Excluding the impact of TAS 29, gross profit margin slightly increased by 56 bps to 46.7% in 1H2024.
Beer Group's EBITDA (BNRI) decreased by 19.5% to TL 4,356.1 million in 2Q2024, with a margin contraction of 384 bps compared to the same period of the previous year, marking it at 18.5%. Türkiye beer operation's EBITDA (BNRI) margin expanded in 2Q similar to previous quarter, benefitting from improved gross profitability and tight opex management, with opex/sales being lower than last year. International beer operations, however, recorded higher operational expenses primarily due to increased transportation costs in Russia, combined with softer gross profitability, led to a decline in EBITDA (BNRI) margin. Therefore, beer group's EBITDA (BNRI) was recorded at TL 5,542.8 million in 1H2024 with 418 bps margin contraction. Excluding the impact of TAS 29, EBITDA (BNRI) margin contracted by 334 bps to 16.6% in 1H2024.
Beer Group's net income was TL 2,367.9 million in 2Q2024 compared to TL 4,102.3 million a year ago. The decline in the bottom line is attributable to higher interest expenses in Türkiye, driven by increased borrowing costs, and heightened FX losses recorded from hard currency cash held in Russia as a result of stronger RUB against hard currencies during in 2Q versus previous quarter. Also, monetary gains were lower in 2Q2024 versus last year. Therefore, beer group net income was recorded at TL 4,152.8 million in 1H2024. Excluding the impact of TAS 29, beer group net income would be TL 3,229.6 million for the same period.
Beer Group's Free Cash Flow increased from TL 7,204.5 million in 2Q2023 to TL 7,382.8 million in 2Q2024. Despite lower operational profitability and higher interest expenses, cash flow improved due to better working capital management and a moderate increase in capital expenditure. As a result of the strong cash generation in the first half, beer group achieved a net cash position of TL 91.8 million as of June 30, 2024.
Our second quarter performance was another testament to the resilience of our operating model and the strength of our people. Despite the external challenges, our focus on quality growth and operational excellence have enabled us to navigate this volatile environment effectively.
We are happy to report a consolidated revenue of TL 36.6 billion in 2Q2024. Our focus on revenue growth management combined with cost control has paid off, leading to a 487bpsyear-over-year improvement (year on year) in our gross margin. EBIT margin improved by 104 bps year on year to 18.8%, while Earnings per Share (EPS) was \$0.66 in the quarter.
We managed to deliver \$2.58 Net Sales Revenue/uc before TAS 29 – the highest among the second quarters of the last decade, implying a growth of 3.6% year on year in \$ terms. Again, without TAS 29, our EBIT margin reached 20.4% - the highest second quarter margin of the last decade. This improvement reflects our ability to adapt to rapidly evolving market conditions, and drive efficiencies across the organization, while effectively locking in favorable hedges for commodities.
In 2Q2024, Türkiye recorded 1.8% year on year volume growth, reaching 169 million uc. While Ramadan's pull-forward to 1Q capped year on year growth, effective trade promotions and active consumer marketing with UEFA Euro Cup activations have resulted in successful volume generation vs prior year and prior quarter. In international operations, we have recorded 0.1% year on year improvement after realizing 7.2% year on year decline in 1Q2024.
Our purpose is to create value for all stakeholders. Hence, we are proud to share that our circular economy practices have been accredited by the International Finance Corporation (IFC). The IFC issued an umbrella loan of \$250 million to CCI in Türkiye, Uzbekistan, Tajikistan, and Iraq, to reduce energy and water usage and to address the gender gap in our workplace, in line with our 2030 pledge.
Our disciplined approach to preserving balance sheet strengthwhile maintaining flexibility, combined with our sustainable value generation has resulted in the reiteration of our BBB rating by Fitch despite the ongoing economic and social volatility our markets are facing. This once again confirms our status as the highestrated entity in Türkiye.
Looking ahead to 2024, we remain cautiously optimistic but are revising our full-year guidance to better reflect current consumer sensitivities and on-going macroeconomic challenges. We now expect flat to low single digit volume growth on an organic basis and low 30% levels of FX neutral revenue growth. We will put relentless effort to deliver in line with our previous EBIT margin guidance of "flat vs previous year". We do, however, see risk of a slight decline in EBIT margin vs previous year, if operating environment deteriorates further. Incorporating this, we amend our EBIT margin guidance as "slight decline to flat vs last year".
Thanks to our talented team dedicated to creating sustainable value, we are mindful of ongoing macroeconomic challenges. Yet, we are confident in our strategic direction, the favorable fundamentals of our operating countries, and our ability to adapt to changing market dynamics to ensure CCI's continued profitable growth in the mid to long term.
| Coca-Cola Içecek (mn TL) | 2Q2023 | 2Q2024 | change% | 1H2023 | 1H2024 | change % |
|---|---|---|---|---|---|---|
| Volume (m u/c) | 448.0 | 451.3 | 0.7% | 800.6 | 792.7 | -1.0% |
| Net Sales Revenue | 39,314.7 | 36,600.2 | -6.9% | 67,988.3 | 66,118.8 | -2.7% |
| Gross Profit | 13,075.4 | 13,955.7 | 6.7% | 21,896.3 | 23,765.8 | 8.5% |
| EBIT (BNRI) | 7,000.3 | 6,895.9 | -1.5% | 10,419.5 | 10,377.5 | -0.4% |
| EBITDA (BNRI) | 7,955.0 | 8,318.5 | 4.6% | 12,723.8 | 13,157.5 | 3.4% |
| Net Income/(Loss)* | 4,500.6 | 5,408.1 | 20.2% | 7,948.2 | 8,352.2 | 5.1% |
| FCF | 2,156.8 | 3,015.6 | 39.8% | -3,207.4 | -2,360.5 | 26.4% |
| Change (bps) | ||||||
| Gross Profit Margin | 33.3% | 38.1% | 487 | 32.2% | 35.9% | 374 |
| EBIT (BNRI) Margin | 17.8% | 18.8% | 104 | 15.3% | 15.7% | 37 |
| EBITDA (BNRI) Margin | 20.2% | 22.7% | 249 | 18.7% | 19.9% | 119 |
| Net Income Margin* | 11.4% | 14.8% | 333 | 11.7% | 12.6% | 94 |
For the full text of Coca-Cola İçecek's 1H2024 Earnings Release, please refer to the link below: https://www.cci.com.tr/en/investor-relations/financial-information-and-presentations
*Net income attributable to shareholders
The financial information provided below excludes the impacts of TAS 29 and is presented solely for analysis purposes in order to to facilitate comparison with the FY2024 guidance. These figures are not aligned with Anadolu Efes' financial report for the period 01.01.2024-30.06.2024 and have not undergone an independent audit.
Without the impact of TAS 29 in 1H2024,
| AEFES Consolidated (TL mn) |
2Q2023 | 2Q2024 | Change % | 1H2023 | 1H2024 | Change % |
|---|---|---|---|---|---|---|
| Volume (mhl) | 35.5 | 36.4 | 2.5% | 62.7 | 63.9 | 1.9% |
| Net Sales Revenue | 38,002.0 | 62,618.8 | 64.8% | 62,568.1 | 106,078.6 | 69.5% |
| Gross Profit | 15,130.7 | 26,463.8 | 74.9% | 24,208.5 | 43,697.6 | 80.5% |
| EBIT (BNRI) | 6,910.6 | 11,505.9 | 66.5% | 9,708.6 | 16,562.9 | 70.6% |
| EBITDA (BNRI) | 8,449.0 | 13,604.2 | 61.0% | 12,659.2 | 20,745.4 | 63.9% |
| Net Income/(Loss)* | 2,872.1 | 3,407.9 | 18.7% | 3,280.6 | 5,093.4 | 55.3% |
| Change (bps) | Change (bps) | |||||
| Gross Profit Margin | 39.8% | 42.3% | 245 | 38.7% | 41.2% | 250 |
| EBIT (BNRI) Margin | 18.2% | 18.4% | 19 | 15.5% | 15.6% | 10 |
| EBITDA (BNRI) Margin | 22.2% | 21.7% | -51 | 20.2% | 19.6% | -68 |
| Net Income Margin* | 7.6% | 5.4% | -212 | 5.2% | 4.8% | -44 |
| Beer Group (TL mn) | 2Q2023 | 2Q2024 | Change % | 1H2023 | 1H2024 | Change % |
| Volume (mhl) | 10.1 | 10.8 | 7.1% | 17.3 | 18.9 | 9.3% |
| Net Sales Revenue | 14,626.1 | 24,678.7 | 68.7% | 23,637.0 | 41,106.3 | 73.9% |
| Gross Profit | 6,980.7 | 11,840.5 | 69.6% | 10,900.0 | 19,184.5 | 76.0% |
| EBIT (BNRI) | 2,310.0 | 3,950.7 | 71.0% | 2,771.9 | 4,757.7 | 71.6% |
| EBITDA (BNRI) | 3,422.2 | 4,904.2 | 43.3% | 4,725.6 | 6,843.2 | 44.8% |
| Net Income/(Loss)* | 1,715.3 | 2,536.7 | 47.9% | 1,605.9 | 3,229.6 | 101.1% |
| Change (bps) | Change (bps) | |||||
| Gross Profit Margin | 47.7% | 48.0% | 25 | 46.1% | 46.7% | 56 |
| EBIT (BNRI) Margin | 15.8% | 16.0% | 22 | 11.7% | 11.6% | -15 |
| EBITDA (BNRI) Margin | 23.4% | 19.9% | -353 | 20.0% | 16.6% | -334 |
| Net Income Margin* | 11.7% | 10.3% | -145 | 6.8% | 7.9% | 106 |
| CCI (TL mn) | 2Q2023 | 2Q2024 | Change % | 1H2023 | 1H2024 | Change % |
| Volume (mn u/c) | 448.0 | 451.3 | 0.7% | 800.6 | 792.7 | -1.0% |
| Net Sales Revenue | 23,272.5 | 37,606.1 | 61.6% | 38,828.2 | 64,520.0 | 66.2% |
| Gross Profit | 8,133.7 | 14,614.8 | 79.7% | 13,293.8 | 24,495.8 | 84.3% |
| EBIT | 4,660.1 | 7,662.6 | 64.4% | 7,002.7 | 11,987.7 | 71.2% |
| EBITDA | 5,064.2 | 8,780.5 | 73.4% | 7,971.3 | 14,011.6 | 75.8% |
| Net Income/(Loss)* | 2,388.2 | 3,902.2 | 63.4% | 3,422.7 | 5,485.6 | 60.3% |
| Change (bps) | Change (bps) | |||||
| Gross Profit Margin | 34.9% | 38.9% | 391 | 34.2% | 38.0% | 373 |
| EBIT Margin | 20.0% | 20.4% | 35 | 18.0% | 18.6% | 54 |
| EBITDA Margin | 21.8% | 23.3% | 159 | 20.5% | 21.7% | 119 |
| Net Income Margin* | 10.3% | 10.4% | 11 | 8.8% | 8.5% | -31 |
* Net income attributable to shareholders
FY2024 outlook does not incorporate any potential impacts associated with the adoption of TAS 29 (Financial Reporting in Hyperinflationary Economies). The annual changes are based on FY2023 financials which exclude inflationary accounting impact.
Reflecting the performances of our operations in the first half of the year and taking into account the challenges in the rest of the year, we have made some changes in our guidance for FY2024.
Our revised expectations for FY2024 are as follows:
Consolidated sales volume growth is expected to be at low-single digit (previously: grow by low-to-mid single digit)
Beer group sales volume is expected to grow by mid-single digit (previously: grow slightly). While international beer operations' volume is now expected to grow by mid-single digit (previously: grow slightly); Türkiye beer volume is expected to grow slightly (previously: stay flat).
Soft drinks sales volume is to stay flat or to grow low single digit (previously: grow mid-single digit)
Consolidated Net Sales Revenue growth is expected to be at low-thirties on FX-Neutral basis (no change)
Beer group revenue is to grow by low-thirties on FX-Neutral basis (previously: grow by lowtwenties on FX-Neutral basis)
Soft drinks revenue is to grow by low-30s percentage on FX-Neutral basis (previously: grow by low-forties on FX-Neutral basis
Consolidated EBITDA (BNRI) Margin is expected to decline around 100 bps (no change)
Beer group EBITDA (BNRI) margin is expected to decline around 200 bps with downside risk yet the absolute EBITDA (BNRI) will be above the initial expectations as a result of guidance upgrade in topline.
Soft drinks EBIT margin is to decline slightly or to stay flat compared to last year (previously: stay flat).
*2024 outlook reflects management expectations and is based upon currently available data. Actual results are subject to future events and uncertainties including but not limited to macro-economic, financial, geopolitical and political risks, which could materially impact the Company's actual performance.
| EBITDA (TL mn) | 1H2023 | 1H2024 |
|---|---|---|
| Profit/loss from Operations | 13,533.3 | 13,027.6 |
| Depreciation and amortization | 5,258.8 | 5,117.3 |
| Provision for retirement pay liability | 212.4 | 188.2 |
| Provision for vacation pay liability | 208.1 | 252.3 |
| Foreign exchange gain/loss from operating activities | 545.3 | 119.1 |
| Rediscount interest income/expense from operating activities | 3.0 | 4.4 |
| Other | 56.5 | 74.2 |
| EBITDA | 19,817.4 | 18,783.0 |
| EBITDA (BNRI*) | 19,817.4 | 18,557.5 |
| *Non-recurring items amounted to TL -225.5 million in 1H2024 | ||
| Financial Income / (Expense) Breakdown (TL mn) | 1H2023 | 1H2024 |
| Interest income | 1,111.5 | 1,417.3 |
| Interest expense | -3,996.9 | -5,972.5 |
| Foreign exchange gain /(loss) | 1,028.5 | 796.4 |
| Other financial expenses (net) | -799.6 | -1,220.2 |
| Gain/(loss) on derivative transactions | 514.4 | -388.2 |
| Net Financial Income /(Expense) | -2,142.1 | -5,367.2 |
| Free Cash Flow (TL mn) | 1H2023 | 1H2024 |
| EBITDA (BNRI) | 19,817.4 | 18,557.5 |
| Change in Working Capital | -4,130.0 | -1,094.5 |
| Income Taxes & Employee Benefits Paid & Other Provision | -2,933.9 | -3,212.6 |
| Payments of Lease Liabilities | -391.3 | -447.7 |
| CAPEX, net | -6,709.3 | -7,030.0 |
| Net Financial Income /(Expense) | -1,054.3 | -5,127.7 |
| Monetary Gain/Loss | -1,993.7 | -2,369.9 |
| Non-Recurring Items | 0.0 | 225.5 |
| FCF | 2,604.9 | -499.4 |
| Other investing activities | -892.1 | -831.0 |
| (Acquisitions, Disposals and Share Capital Increases) | ||
| FCF (after investing activities) | 1,712.7 | -1,330.4 |
| Consolidated Gross Debt |
Cash & Cash Equivalents Net Cash/(Debt) Position | ||
|---|---|---|---|
| AEFES Consolidated (TL mn) | 74,481.4 | 52,524.8 | -21,956.6 |
| Beer Group (TL mn) | 26,863.9 | 26,955.6 | 91.8 |
| Türkiye Beer (TL mn) | 26,527.4 | 2,318.2 | -24,209.2 |
| EBI (TL mn) | 336.5 | 24,584.1 | 24,247.6 |
| CCI (TL mn) | 46,662.4 | 25,522.2 | -21,140.2 |
| Net Debt / EBITDA (BNRI) | 1H2024 | ||
| Anadolu Efes Consolidated | 0.8 | ||
| Beer Group | -0.01 |
| 2023 figures are indexed to 1H2024 using the Consumer Price Index (CPI) rate for | |
|---|---|
| the comparison purposes with 1H2024. | |
| CASH AND CASH | The amount resulting from the indexation difference in 2023 is recorded as a |
| EQUIVALENTS / | monetary loss in the income statement. 1H2024 figures are presented in the |
| TRADE RECEIVABLES: | financial statements at their nominal value as of June 30, 2024, without any indexation. |
| Each cash/trade receivables transaction occurring in 1H2024 is indexed to the | |
| period-end value using the Consumer Price Index (CPI) rate. The difference | |
| between the transaction date value and indexed value is recorded as a monetary loss in the income statement. |
|
| Amount recorded for fixed assets acquired before 2004 is indexed and increased using the Consumer Price Index (CPI) rate from 2004 to June 30, 2024. |
|
| INVENTORY/FIXED | For fixed assets acquired after 2004, the recorded amount is first indexed to June |
| ASSETS: | 30, 2024 using the CPI rate from the date of recording. |
| Stocks recorded in both previous period (1H2023) and current period (1H2024) are indexed from the date of recording to June 30, 2024, using the CPI rate. |
|
| 2023 figures are indexed to 1H2024 using the Consumer Price Index (CPI) rate for the comparison purposes with 1H2024. |
|
| TRADE | The amount resulting from the indexation difference in 2023 is recorded as a |
| PAYABLES/FINANCIAL | monetary gain in the income statement. 1H2024 figures are presented in the |
| DEBT: | financial statements at their nominal value as of June 30, 2024, without any indexation. |
| Each trade payable/financial debt transaction occurring in 1H2024 is indexed to | |
| the period-end value using the Consumer Price Index (CPI) rate. The difference | |
| between the transaction date value and indexed value is recorded as a monetary gain in the income statement. |
|
| Paid-in capital before 2004 is indexed to June 30, 2024 using the CPI rate. | |
| EQUITY: | |
| The amount related to capital transactions (e.g., capital increases) recorded in capital accounts after 2004 is indexed from the date of recording to the June 30, |
|
| 2024. | |
| GROSS SALES: | Every sales transaction recorded in the previous period (1H2023) and current |
| period (1H2024) is indexed from the date of recording to June 30, 2024, using the CPI rate. |
|
| COST OF GOODS | For the previous period (1H2023) and the current period (1H2024), production |
| SOLD: | materials and overheads entering inventory are indexed from their date of entry |
| into stock until June 30, 2024, using the CPI rate. | |
| OPERATIONAL | Every product and service purchased previous period (1H2023) and the current |
| EXPENSES: | period (1H2024) is indexed from the date of purchase until June 30, 2024, using the CPI rate. |
| FINANCIAL INCOME / | Every interest income/expense and exchange rate income/expense recorded in the |
| (EXPENSE): | previous period (1H2023) and the current period (1H2024) is indexed from the |
| relevant date until June 30, 2024, using the CPI rate. | |
| MONETARY | The inflation/indexing effects on the company's monetary position, comprising cash and cash equivalents, financial debts, trade receivables, and trade payables, are |
| GAIN/LOSS: | reflected as monetary gain or loss. |
| REGARDING THE CONSOLIDATION OF INTERNATIONAL OPERATIONS: | |
| Each item in the 2023 financial statements, prepared in local currency for international operations, is converted to | |
the reporting unit, Turkish Lira (TL), using the June 30, 2023 exchange rate, in accordance with the principle of comparability. These items are then indexed using the June 30, 2024 Consumer Price Index rate to be presented on the basis of purchasing power as of 30.06.2024.
ANADOLU EFES
Consolidated Income Statements for the Six-Months Period Ended 30.06.2023 and 30.06.2024 Prepared in accordance with TAS/TFRS as per CMB Regulations (TL mn) TAS 29 (Financial Reporting in Hyperinflationary Economies) implemented
2023/06 2024/06 SALES VOLUME (mhl) 62.7 63.9 SALES REVENUE 108,652.0 107,731.2 Cost of Sales (-) -69,011.4 -66,046.1 GROSS PROFIT FROM OPERATIONS 39,640.6 41,685.1 Selling, Distribution and Marketing Expenses (-) -18,336.6 -20,622.8 General and Administrative Expenses (-) -7,326.0 -8,245.0 Other Operating Income /Expense (net) -444.8 210.4 EBIT (BNRI) 13,533.3 12,802.1 Income /Expense from Investing Activities (net) 709.1 20.4 Income / (Loss) from Associates -177.4 -3.7 OPERATING PROFIT BEFORE FINANCE INCOME/(EXPENSE) 14,065.0 13,044.3 Financial Income / Expense (net) -2,142.1 -5,367.2 Monetary Gain / Loss 9,043.5 7,794.7 PROFIT BEFORE TAX FROM CONTINUING OPERATIONS 20,966.3 15,471.7 Continuing Operations Tax Income/(Expense) - Current Period Tax Expense (-) / Income -4,073.0 -4,548.9 - Deferred Tax Expense (-) / Income -1,865.7 1,500.7 INCOME/(LOSS) FOR THE PERIOD 15,027.6 12,423.6 Attributable to: Non-Controlling Interest 5,786.4 5,063.8 EQUITY HOLDERS OF THE PARENT 9,241.2 7,359.8 EBITDA (BNRI)* 19,817.4 18,557.5
*Non-recurring items amounted to TL -225.5 million in 1H2024
Note: EBITDA comprises of Profit from Operations, depreciation and other relevant non-cash items up to Profit from Operations.
(TL mn)
| 2023/12 | 2024/06 | |
|---|---|---|
| Cash & Cash Equivalents | 51,480.5 | 49,537.2 |
| Financial Investments | 468.7 | 2,987.6 |
| Derivative Instruments | 206.7 | 206.3 |
| Trade Receivables from Third Parties | 17,277.5 | 32,835.0 |
| from Related Parties | 1,907.7 | 2,836.3 |
| Other Receivables | 574.2 | 844.5 |
| Inventories | 31,031.5 | 28,691.5 |
| Other Current Assets | 9,474.4 | 9,182.6 |
| TOTAL CURRENT ASSETS | 112,421.3 | 127,121.1 |
| Trade Receivables | 1.6 | 0.9 |
| Financial Investments | 13.6 | 13.6 |
| Investments in Associates | 0.6 | 16.9 |
| Property, Plant and Equipment (incl. inv properties) | 71,866.2 | 72,841.3 |
| Right of Use Assets | 2,547.0 | 2,660.1 |
| Other Intangible Assets | 116,570.8 | 110,627.4 |
| Goodwill | 15,692.0 | 14,952.6 |
| Deferred Tax Assets | 7,577.6 | 9,116.0 |
| Derivative Instruments | 41.7 | 40.7 |
| Other Non-Current Assets | 4,096.8 | 4,151.2 |
| TOTAL NON-CURRENT ASSETS | 218,407.9 | 214,420.6 |
| TOTAL ASSETS | 330,829.3 | 341,541.7 |
| Short-term Borrowings | 15,171.4 | 16,354.9 |
| Current portion of long term borrowings | 13,802.4 | 12,154.6 |
| Current portion of term lease obligations (IFRS 16) | 798.5 | 698.2 |
| Derivative Instruments | 348.6 | 956.9 |
| Current Trade Payables to Third Parties | 39,690.8 | 48,569.3 |
| to Related Parties | 1,545.8 | 1,923.5 |
| Other Current Payables | 21,272.5 | 27,351.7 |
| Provision for Corporate Tax | 737.5 | 2,007.6 |
| Provisions | 2,229.7 | 2,194.9 |
| Other Liabilities | 2,316.5 | 1,672.6 |
| TOTAL CURRENT LIABILITIES | 97,913.7 | 113,884.3 |
| Long-term Borrowings | 44,029.7 | 43,924.3 |
| Long term lease obligations (IFRS 16) | 1,330.4 | 1,349.4 |
| Non Current Trade Payables | 2.7 | 1.9 |
| Deferred Tax Liability | 24,131.9 | 22,999.6 |
| Derivative Instruments | 3.7 | 0.0 |
| Other Non Current Liabilities | 1,414.0 | 1,307.3 |
| TOTAL NON-CURRENT LIABILITIES | 70,912.3 | 69,582.5 |
| TOTAL EQUITY | 162,003.2 | 158,074.9 |
| TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | 330,829.3 | 341,541.6 |
Note 1: "Financial Investments" in Current Assets includes the time deposits with a original maturity more than three months.
| 2023/06 | 2024/06 | |
|---|---|---|
| Sales Volume (mhl) | 17.3 | 18.9 |
| Sales Revenue | 40,481.5 | 41,130.0 |
| Cost of Sales (-) | -22,709.3 | -23,076.5 |
| Gross Profit from Operations | 17,772.2 | 18,053.5 |
| EBIT (BNRI) | 3,298.8 | 2,820.3 |
| Operating Profit Before Finance Income/(Expense) | 3,823.6 | 4,110.2 |
| Profit Before Tax from Continuing Operations | 8,755.0 | 5,049.1 |
| Income/(Loss) for the Period | 7,350.5 | 5,031.2 |
| Equity Holders of the Parent | 5,663.2 | 4,152.8 |
| EBITDA (BNRI)* | 7,147.0 | 5,542.8 |
*Non-recurring items amounted to TL -225.5 million in 1H2024
Note: EBITDA comprises of Profit from Operations, depreciation and other relevant non-cash items up to Profit from Operations
(TL mn)
| 2023/12 | 2024/06 | |
|---|---|---|
| Cash & Cash Equivalents | 24,280.4 | 26,756.5 |
| Financial Investments | 0.0 | 199.1 |
| Derivative Instruments | 30.3 | 21.8 |
| Trade Receivables | 7,966.2 | 13,217.4 |
| Other Receivables | 373.8 | 445.7 |
| Inventories | 14,749.8 | 12,346.7 |
| Other Current Assets | 4,370.7 | 3,956.4 |
| TOTAL CURRENT ASSETS | 51,771.2 | 56,943.7 |
| Trade Receivables | 1.6 | 0.9 |
| Financial Investments | 13.6 | 13.6 |
| Investments in Associates | 12,227.0 | 12,243.2 |
| Property, Plant and Equipment (incl. inv properties) | 23,237.3 | 21,788.4 |
| Right of Use Assets | 853.0 | 753.2 |
| Other Intangible Assets | 26,443.0 | 24,728.5 |
| Goodwill | 9,698.0 | 9,267.0 |
| Deferred Tax Assets | 5,823.8 | 6,206.4 |
| Other Non-Current Assets | 2,123.7 | 2,531.0 |
| TOTAL NON-CURRENT ASSETS | 80,420.9 | 77,532.2 |
| TOTAL ASSETS | 132,192.1 | 134,476.0 |
| Current portion of long term borrowings | 2,103.5 | 519.2 |
| Short-term Borrowings | 4,485.0 | 6,939.1 |
| Current portion of term lease obligations (IFRS 16) | 463.9 | 394.9 |
| Derivative Instruments | 0.0 | 587.6 |
| Current Trade Payables | 25,231.6 | 26,552.5 |
| Other Current Payables | 10,739.6 | 13,988.1 |
| Provision for Corporate Tax | 235.1 | 125.7 |
| Provisions | 1,015.5 | 986.6 |
| Other Liabilities | 1,223.3 | 747.5 |
| TOTAL CURRENT LIABILITIES | 45,497.6 | 50,841.2 |
| Long-term Borrowings | 20,767.3 | 18,684.2 |
| Long term lease obligations (IFRS 16) | 386.8 | 326.5 |
| Deferred Tax Liability | 6,006.4 | 5,453.2 |
| Other Non Current Liabilities | 415.6 | 399.2 |
| TOTAL NON-CURRENT LIABILITIES | 27,576.0 | 24,863.1 |
| TOTAL EQUITY | 59,118.6 | 58,771.7 |
| TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | 132,192.1 | 134,476.0 |
Prepared in accordance with TAS/TFRS as per CMB Regulations Consolidated Income Statements For the Six-Months Period Ended 30.06.2023 and 30.06.2024 TAS 29 (Financial Reporting in Hyperinflationary Economies) implemented
(TL mn)
| 2023/06 | 2024/06 | |
|---|---|---|
| SALES VOLUME (UC millions) | 800.6 | 792.7 |
| SALES REVENUE | 67,988.3 | 66,118.8 |
| Cost of Sales (-) | -46,092.0 | -42,353.0 |
| GROSS PROFIT FROM OPERATIONS | 21,896.3 | 23,765.8 |
| Selling, Distribution and Marketing Expenses (-) | -9,309.4 | -10,238.8 |
| General and Administrative Expenses (-) | -2,587.7 | -3,317.3 |
| Other Operating Income /Expense (net) | 420.3 | 167.8 |
| EBIT | 10,419.5 | 10,377.5 |
| Income / Expense From Investing Activities (net) | -79.8 | -26.2 |
| Income / (Loss) from Associates | -19.0 | -3.5 |
| OPERATING PROFIT BEFORE FINANCE INCOME/(EXPENSE) | 10,320.6 | 10,347.9 |
| Financial Income / Expenses (net) | -2,525.7 | -3,817.3 |
| Monetary Gain / Loss | 4,423.5 | 5,212.6 |
| PROFIT BEFORE TAX FROM CONTINUING OPERATIONS | 12,218.5 | 11,743.2 |
| -Deferred Tax Income/(Expense) | -1,095.2 | 270.4 |
| -Current Period Tax Expense | -2,824.8 | -3,615.9 |
| INCOME/(LOSS) FOR THE PERIOD | 8,298.5 | 8,397.6 |
| Profit/(Loss) Attributable to: | ||
| Non-Controlling Interest | -350.2 | -45.4 |
| Equity Holders of the Parent | 7,948.2 | 8,352.2 |
| EBITDA | 12,723.8 | 13,157.5 |
| 2023/12 | 2024/06 | |
|---|---|---|
| Cash and Cash Equivalents | 27,135.7 | 22,751.7 |
| Investments in Securities | 468.7 | 2,770.5 |
| Derivative Financial Instruments | 176.4 | 184.5 |
| Trade Receivables | 10,994.8 | 22,452.4 |
| Other Receivables | 150.4 | 287.4 |
| Inventories | 16,193.7 | 16,180.1 |
| Prepaid Expenses | 2,328.2 | 3,008.0 |
| Tax Related Current Assets | 791.9 | 465.3 |
| Other Current Assets | 1,950.4 | 1,532.1 |
| TOTAL CURRENT ASSETS | 60,190.2 | 69,631.9 |
| Derivative Financial Instruments | 41.7 | 38.2 |
| Other Receivables | 168.3 | 158.6 |
| Right of Use Asset | 676.3 | 531.9 |
| Property, Plant and Equipment | 43,949.8 | 47,117.2 |
| Intangible Assets | 24,074.1 | 22,165.2 |
| Goodwill | 5,794.0 | 5,485.5 |
| Prepaid Expenses | 1,518.3 | 1,354.1 |
| Deferred Tax Asset | 724.3 | 1,521.5 |
| Other Non Current Asset | 268.6 | 0.0 |
| TOTAL ASSETS | 137,405.6 | 148,004.2 |
|---|---|---|
| Short-term Borrowings | 10,643.9 | 9,237.5 |
| Current Portion of Long-term Borrowings | 11,643.0 | 11,600.3 |
| Financial lease payables | 244.4 | 198.9 |
| Trade Payables | 23,196.0 | 31,092.7 |
| Payables Related to Employee Benefits | 450.6 | 513.0 |
| Other Payables | 3,110.5 | 5,854.2 |
| Derivative Financial Instruments | 347.2 | 369.3 |
| Provision for Corporate Tax | 510.1 | 1,826.7 |
| Current Provisions | 1,205.4 | 1,186.5 |
| Other Current Liabilities | 423.6 | 417.2 |
| TOTAL CURRENT LIABILITIES | 51,774.9 | 62,296.4 |
| Long-term Borrowings | 23,090.8 | 25,200.4 |
| Financial lease payables | 579.2 | 454.7 |
| Trade and Other Payables | 6.2 | 3.5 |
| Provision for Employee Benefits | 912.8 | 846.3 |
| Deferred Tax Liability | 4,908.3 | 4,385.0 |
| Derivative Financial Instruments | 3.7 | 0.0 |
| Other Non-Current Liabilities | 55.3 | 25.3 |
| TOTAL NON-CURRENT LIABILITIES | 29,556.3 | 30,915.1 |
| TOTAL EQUITY | 56,074.3 | 54,792.6 |
| TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY | 137,405.6 | 148,004.2 |
Totals may not foot due to rounding differences
Anadolu Etap Tarım is Türkiye's first and largest-scale fruit growing company, operating with 25,000 decares of land, 7 farms, and 3.5 million trees. Anadolu Etap, which considers social, economic, and environmental sustainability as the most important value in all its activities, achieved a first in Türkiye in 2014 by publishing the 'Principles of Sustainable Agriculture,' and leads the development of agriculture and agriculture-based industries by following to these principles. Anadolu Etap Plantation and Fresh Products, deriving 65% of its sales from exports, produces high-quality, sustainable, and safe food while also running social projects that support regional development.
Anadolu Etap Beverage has a broad product portfolio of juice concentrates and purees. With three highly automated juice concentrate plants, it meets international standards by producing high-quality, food-safe products that meet market demands, serving a wide range of geography from America to the Far East and, gains 70% of Anadolu Etap İçecek's sales from exports.
Anadolu Efes Biracılık ve Malt Sanayii A.Ş. (Anadolu Efes), together with its subsidiaries and affiliates produces and markets beer, malt and soft drinks across a geography including Türkiye, Russia, the CIS countries, Central Asia and the Middle East with a total of 19,362 employees, including both beer & soft drink operations. Anadolu Efes, listed at Borsa İstanbul (AEFES.IS), is an operational entity under which the Türkiye beer operations are managed, as well as a holding entity which is the 100% shareholder of EBI that manages international beer operations, and is the largest shareholder of CCI which manages the soft drink business in Türkiye and international markets.
This document may contain certain forward-looking statements concerning our future performance and should be considered as good faith estimates made by the Company. These forward-looking statements reflect management expectations and are based upon currently available data. Actual results are subject to future events and uncertainties, which could materially impact the Company's actual performance.
The consolidated financial statements of Anadolu Efes are prepared in accordance with Turkish Financial Reporting Standards ("TFRS") as per regulations of the Capital Markets Board of Türkiye ("CMB").
The attached financial statements in this announcement comprise the income statements for the period ended 30.06.2023 and 30.06.2024 as well as the balance sheets as of 31.12.2023 and 30.06.2024.
Anadolu Efes and its subsidiaries in which Anadolu Efes holds the majority stake; including Efes Pazarlama (marketing, sales & distribution of beer products in Türkiye), EBI (international beer operations), and Anadolu Etap Tarım are fully consolidated in the financials. According to the Shareholder's Agreement regarding the governance of CCI, in which Anadolu Efes holds 50.3% stake, Anadolu Efes also fully consolidates CCI.
Anadolu Efes – 1H2024 Results Presentation will be held on Wednesday, 21 st of August 2024 at 16:30 (Istanbul) 14:30 (London) 09:30 (New York).
The meeting will be held via Teams Live Event. We kindly recommend you to test your access to the link below prior to the call.
Audio connection will not be available; however, you are more than welcome to join the call with your mobile devices via the link above.
Replay: The replay link will be available in our website.
A copy of the presentation will be available prior to the conference call from our website at www.anadoluefes.com.
For financial reports and further information regarding Anadolu Efes, please visit our website at http://www.anadoluefes.com/ or you may contact;
tel: +90 216 586 80 72 tel: +90 216 586 80 09 e-mail: [email protected] e-mail: [email protected]
(Investor Relations & Risk Management Director) (Investor Relations & Risk Management Supervisor)
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