Anadolu Efes Biracilik Ve Malt Sanayii A.s. · BIST:AEFES
Anadolu Efes Biracilik Ve Malt Sanayii A.s — Anadolu Efes Birack Ord — 1H2024 Earnings Presentation
22 slides from Anadolu Efes Biracilik Ve Malt Sanayii A.s's earnings presentation, Aug 21, 2024
Slide 1: 1H2024 Conference Call Presentation
1H2024 CONFERENCE CALL PRESENTATION 21 AUGUST 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation 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
Slide 3: Important Disclaimer Regarding TAS29
Important Disclaimer Regarding TAS29 As stipulated by the decree of the Capital Markets Board, the financial statements for the 1H2024 have been presented in accordance with TAS29 (Turkish Accounting Standard 29: Financial Reporting in Hyperinflationary Economies), and retrospective adjustments have
Slide 4: General Overview & Operating Environment
GENERAL OVERVIEW & OPERATING ENVIRONMENT ONUR ALTÜRK CEO & Beer Group President
Slide 5: Another Quarter of Strong Volume Momentum
Another Quarter of Strong Volume Momentum… High-single digit volume growth in beer 1 with low-single digit gains in AEFES Effective revenue management driving solid 2 gross profitability margin expansion Flat EBITDA (BNRI) margin year-on- 3 year despite increased OPEX Robust Free Cash Flow generatio
Slide 6: Sustained Growth in Beer Group Volumes
Sustained Growth in Beer Group Volumes… • Consolidated beer volume up by 7.1% in 2Q2024 ➢ Solid performance in Russia, Turkiye and Moldova • Turkiye beer volume up 2.8% • International beer volume up 8.2% ➢ Russian volume grew by low-teens ➢ CIS countries’ volume down by mid-single digits on average
Slide 7: Russia
Russia • Continued growth trend in Russian beer industry ➢ Mid to high single-digit growth* YTD driven by: ✓ Shifts from other alcoholic beverages to beer ✓ New product innovations ✓ Increased market investments • Outperformed the industry in 2Q2024 with low-teens growth; ➢ Strong performance in pre
Slide 8: CIS and Türkiye
CIS • CIS volume down by mid-single digits on average in 2Q2024 ➢ Moldova achieved mid-teens growth ➢ Softer performance observed ✓ In Kazakhstan, impacted by weak industry dynamics and floods in the country ✓ In Georgia, due to production bottlenecks Türkiye • Robust volume performance in 2Q2024 •
Slide 9: Soft Drinks
Soft Drinks • Consolidated volume up by 0.7% in 2Q2024; • Türkiye volume up 1.8% ➢ Effective trade promotions and active consumer marketing ➢ UEFA Euro Cup activations • International volume up 0.1% ➢ Iraq & Azerbaijan delivered strong results with 15.1% and 11.5% growth, respectively ➢ Pakistan dow
Slide 10: Strong Top & Bottom line in 1H2024
Strong Top & Bottom line in 1H2024… Anadolu Efes Beer Group • Effective pricing 2Q 1H 2Q 1H REVENUE TL60.5mn TL107.7mn TL23.6mn TL41.1mn • Focus on quality mix NET (-5.1%) (-0.8%) (-2.8%) (+1.6%) • Strict discount management • Negative impact from the implementation of TAS 29 • Tight control of oper
Slide 11: Financial Overview
FINANCIAL OVERVIEW GÖKÇE YANAŞMAYAN Chief Financial Officer
Slide 12: Financials
Financials Anadolu Efes Beer Group mTL mTL 2Q2024 Change 1H2024 Change 2Q2024 Change 1H2024 Change Sales Revenue 60,508 -5.1% 107,731 -0.8% Sales Revenue 23,564 -2.8% 41,130 1.6% Gross Profit 24,774 1.7% 41,685 5.2% Gross Profit 10,629 -3.6% 18,054 1.6% EBITDA (BNRI) 12,582 -5.5% 18,557 -6.4% EBITDA
Slide 13: Anadolu Efes EBITDA (BNRI) & FCF Generation
Anadolu Efes EBITDA (BNRI) & FCF Generation Free Cash Flow Bridge mTL EBITDA (BNRI) Bridge mTL -5% ~ 13,312 -1,138 -1,646 12,582 -3,229 3,619 524 5,025 -3,158 -731 8,983 8,981 2Q2023 Net COGS Selling, Other 2Q2024 2Q2023 EBITDA Changes CAPEX, net Financial 2Q2024 Revenue Marketing and in WC Inc/Exp
Slide 14: Beer Group EBITDA (BNRI) & FCF Generation
Beer Group EBITDA (BNRI) & FCF Generation EBITDA (BNRI) Bridge mTL Free Cash Flow Bridge mTL -19.5% +2% 5,411 -206 -571 -675 250 2,010 -877 4,356 -1,055 248 7,204 7,383 2Q2023 Net COGS Selling, Other 2Q2024 2Q2023 EBITDA Changes CAPEX, net Financial 2Q2024 Revenue Marketing and in WC Inc/Exp G&A exp
Slide 15: Impact of TAS29 – Anadolu Efes
Impact of TAS29 – Anadolu Efes +65% -5% +70% -1% NET REVENUE 62.619 63.737 106.079 108.652 107.731 60.508 -2.111 +1.653 38.002 62.568 2Q2023 2Q2024 2Q2023 2Q2024 1H2023 1H2024 1H2023 1H2024 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 +61% -5% +64% -6% EBITDA 13.604 13.312 12.
Slide 16: Impact of TAS29 – Beer Group
Impact of TAS29 – Beer Group NET REVENUE +69% -3% +74% +2% 24.679 24.239 23.564 41.106 40.481 41.130 -1.115 +24 14.626 23.637 2Q2023 2Q2024 2Q2023 2Q2024 1H2023 1H2024 1H2023 1H2024 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 wo/TAS29 wo/TAS29 w/TAS29 w/TAS29 EBITDA +43% -19% +45% -22% 4.904 5.411 6.843 7.147
Slide 17: Cash & Debt Management
Cash & Debt Management Anadolu Efes Gross Debt Cash USD 2.3 bn USD 1.6 bn Average maturity 68% 60% 2.9 yrs held in Hard Currency held in Hard Currency Net Debt/EBITDA 23% 0.8x held in Eurozone Beer Group Gross Debt Cash USD 0.8 bn USD 0.8 bn Average maturity 66% 57% 2.9 yrs held in Hard Currency hel
Slide 18: Risk Management
Risk Management Beer Group Beer Group Hedges for 2024: COGS Split for 2023: 8% Commodity : 19% 16% Aluminum: 89% for TR & CIS @$2.350 6% 17% 16% *For 2025: 28% for TR & CIS @$2,389 20% FX Exposure : Barley-Malt & Auxiliary Overhead (Labour Cost) Russia: 100% Hedged Glass Bottle Amortization & Other
Slide 19: FY2024 Expectations
FY2024 EXPECTATIONS
Slide 20: FY2024 Revised Expectations
FY2024 Revised Expectations Considering the first half performances of the operations and upcoming challenges that lies ahead in the rest of the year, we have revised our FY2024 guidance ANADOLU EFES BEER GROUP SOFT DRINKS GROUP VOLUME Low-single digit growth Mid-single digit growth Flat or to low-s
Slide 21: Q&A Session
O&A SESSION J "es
Slide 22: FX Rates
FX Rates 1H2023 1H2024 Δ% AVG 19.86 31.60 59.1% USD/TL PE 25.82 32.83 27.1% AVG 21.47 34.17 59.1% EUR/TL PE 28.15 35.13 24.8% AVG 3.87 2.87 -25.9% TL/RUB PE 3.37 2.61 -22.5% AVG 22.75 14.21 -37.6% TL/KZT PE 17.59 14.36 -18.3% AVG 1.84 1.23 -33.0% TL/UAH PE 1.42 1.23 -12.8% AVG 0.93 0.56 -39.3% TL/MD
Anadolu Efes Birack Ord — 1H2024 Earnings Presentation on 6ix