Anadolu Efes (AEFES) Q2 2025 earnings summary

Executive summary

• Achieved mid-single digit volume growth in both beer (5.3%) and soft drinks (4.7%) in Q2 2025, with Türkiye beer up 5.9% and international beer up 4.7%, despite topline and margin pressure from affordability focus and increased discounting.

• Exclusion of Russian beer operations from consolidation as of January 2025, with results presented on a proforma basis for comparability.

• Free cash flow generation supported by peak season momentum and disciplined CAPEX, but operational profitability and cash balances declined year-over-year.

• Net profit attributable to owners was TRL 5.9 billion for 1H2025, down from TRL 9.9 billion year-over-year.

Financial highlights

• Consolidated net revenue for 1H2025 was TRL 111.4 billion, down 3.1% year-over-year on a proforma basis, with gross profit at TRL 39.6 billion and EBITDA BNRI at TRL 16.7 billion.

• Net income for Q2 2025 was TRY 4 billion; for 1H2025, net income was TRL 5.9 billion, down 32.2% year-over-year.

• Beer group sales revenue declined 1.2% year-over-year to TRY 15.6 billion on a pro forma basis; international beer revenue down 6.5%, but up 24.2% excluding inflationary accounting.

• Free cash flow for 1H2025 was -TL11.5bn, a 74.2% decrease year-over-year; beer group free cash flow in Q2 was TRY 3.7 billion but declined year-over-year.

• Cash and cash equivalents at period end were TRL 37.8 billion, down from TRL 63.1 billion at year-end 2024; total borrowings increased to TRL 99.0 billion.

Outlook and guidance

• Management expects flat to modest market growth in beer, with a focus on outperforming the market and growing revenue above inflation, while maintaining cost discipline amid challenging macroeconomic and geopolitical conditions.

• Committed to growing EBITDA in absolute terms, though margin pressure is anticipated; free cash flow generation and deleveraging remain top priorities.

• CapEx-to-sales ratio in beer group is 7%-8%, higher in Türkiye due to capacity investments; capital expenditures for the period were TRL 9.6 billion.

• Beer group free cash flow expected to remain negative for 2025, with a goal to turn positive by end of next year; net leverage for beer group expected to remain at 3.7x by year-end.

• Results for the first half may not be indicative of full-year performance due to seasonality in beverage consumption.