Anadolu Efes (AEFES) Q3 2025 earnings summary

Executive summary

• Third quarter 2025 results showed solid profitability and high single-digit consolidated volume growth, mainly from international soft drinks, while Beer Group volumes declined, especially in Türkiye.

• Russia operations were excluded from consolidation and are now classified as financial investments, impacting reported results.

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

• Net profit attributable to owners was TRL 11.6 billion, with EBITDA BNRI at TRL 33.3 billion for the nine months ended September 30, 2025.

• Free cash flow reached TRY 9.4 billion, with net debt-to-EBITDA at 1.5x as of September 30, 2025.

Financial highlights

• Consolidated volumes reached 31 million hectoliters, up 7% year-over-year on a pro forma basis, driven by soft drinks.

• Consolidated sales revenue for 9M2025 was TL 188.6bn, down 0.7% year-over-year on a pro forma basis excluding Russia.

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

• Beer Group sales revenue declined 6.9% to TRY 15.7 billion in Q3 on a pro forma basis; international Beer operations revenue fell 4.5%.

• Beer Group EBITDA was TRY 3.4 billion (22% margin) in Q3; nine-month EBITDA was TRY 6.4 billion (15.4% margin).

Outlook and guidance

• Free cash flow generation remains a top priority, with ongoing focus on working capital improvement, especially in Türkiye.

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

• Initial expectations for 2026 indicate a slow decline in inflation, which should be reflected in COGS per hectoliter.

• Management will provide more detailed guidance for 2026 towards year-end or early next year.

• Results are affected by seasonality, with higher beverage consumption in summer months.