Beer Group President And Anadolu Efes CEO Onur Altürk Commented

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 well-positioned to achieve our goals and committed to continue delivering value to our stakeholders.