Anadolu Efes (AEFES) Q4 2024 earnings summary

Executive summary

• Consolidated volume grew 0.9% in 2024, with strong brand and portfolio performance and market leadership in key regions.

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

• Soft drinks segment saw a 2.2% volume decline in 2024, despite a 7.3% increase in Q4, impacted by inflation and geopolitical issues.

• Free cash flow declined sharply to TL 2.6 bn, and a dividend of TL 1.27/share was proposed.

• Consolidated financial statements audited with an unqualified opinion in accordance with TFRS.

Financial highlights

• FY2024 consolidated sales revenue: TL 231.4 billion, up slightly from TL 230.8 billion in 2023; Q4 beer group sales revenue rose 12.3% to TL 17.9 billion.

• Gross profit for FY2024: TL 91.0 billion (+6.8%); EBITDA (BNRI): TL 39.4 billion (-4.6%); net income: TL 13.1 billion (-58.9%).

• Beer group FY2024 sales revenue: TL 92.2 billion (+10.1%); EBITDA (BNRI): TL 14.2 billion (-7.7%); net income: TL 7.3 billion (-58.8%).

• Free cash flow declined 80.2% to TL 2.6 billion in FY2024.

• Earnings per share: TL 22.15, down from TL 53.96 in 2023.

Outlook and guidance

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

• 2025 focus on expanding into CIS countries, enhancing operational efficiency, and investing in high-growth products like spirits.

• Management expects no material impact from new TFRS standards effective in 2024 and 2025.