This article first appeared on GuruFocus .
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Consolidated Volume Growth:Increased by more than 7% in the second quarter, supported by healthy momentum in the soft drink business.
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Consolidated Revenue Growth:2.8% growth in the second quarter, reflecting volume growth and pricing discipline.
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Consolidated Net Debt-to-EBITDA:Improved to 1.2 times.
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Beer Group Volumes (Q2):Reached 3.8 million hectoliters, an 8% decline year-on-year, driven by softness in Turkiye.
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International Beer Volumes (Q2):Declined 4.1% on a reported basis, but grew 1.2% excluding the impact of export business restructuring in Georgia.
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Turkiye Beer Volumes (Q2):Declined by 12.5% during the quarter.
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Soft Drink Volumes (Q2):Consolidated volumes increased by 9.3%, reaching 519 million unit cases.
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Soft Drink Volumes in Turkiye (Q2):Declined by 1.1% to 159 million unit cases.
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International Soft Drink Volumes (Q2):Increased by 15.4%, with Pakistan growing 17%, Uzbekistan expanding 21.1%, and Kazakhstan delivering 12.7% volume growth.
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Beer Group Sales Revenue (Q2):Declined by 6% to almost TRY20 billion.
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Turkiye Beer Revenue (Q2):Recorded TRY11 billion, an 11% decrease due to a 12.5% volume decline.
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International Beer Revenue (Q2):Increased by almost 2% year-on-year to TRY8.3 billion, with Kazakhstan's revenue per hectoliter expanding by 14%.
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Beer Group Gross Profit (Q2):Declined by almost 10% to TRY9 billion, with a margin contraction of 200 basis points.
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Beer Group EBITDA (Q2):Recorded TRY3.1 billion, with an EBITDA margin of almost 16%, a 475 basis point contraction.
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Beer Group EBITDA (H1):TRY2.3 billion, with an EBITDA margin of 7.7%.
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Beer Group Free Cash Flow (Q2):Generated TRY3.8 billion.
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Beer Group Net Debt-to-EBITDA:4.7 as of June 30, or 3.3 excluding TAS 29 figures.
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Beer Group Revenue (H1, excluding TAS 29):TRY30 billion, representing 24% year-on-year growth.
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Beer Group EBITDA (H1, excluding TAS 29):Increased by 2% year-on-year to TRY4.5 billion, corresponding to a 15% EBITDA margin.
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Gross Debt (Beer Group):Approximately $1 billion, with more than 60% in hard currency.
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Gross Debt (Consolidated):Approximately $2.3 billion, with almost 60% in hard currency.
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Consolidated Net Debt-to-EBITDA:1.3 for Anadolu Efes.
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2026 Full-Year Beer Group Guidance:Volumes now expected to decline by low single digits; EBITDA margin expected to decline by around 150 basis points under TAS-29 or around 100 basis points excluding TAS-29 impact.
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2026 Full-Year Consolidated Guidance:Mid-single digit volume growth and low single digit revenue and profitability growth under TAS-29, with EBITDA margin expected to decline slightly.
Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Consolidated volumes increased by over 7% in Q2, driven by strong soft drink performance.
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International beer operations returned to growth (up 1.2% excluding Georgia restructuring), with Kazakhstan delivering four consecutive quarters of volume expansion.
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Soft drink business showed robust growth, with international volumes up 15.4%, led by Pakistan (+17%) and Uzbekistan (+21.1%).
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Consolidated net debt-to-EBITDA improved to 1.2 times, reflecting strong cash generation and balance sheet strengthening.
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Strategic expansion progressed with licensed production in Azerbaijan and toll-filling agreements in Uzbekistan and China, supporting asset-light growth.
Negative Points
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Turkey beer volumes declined 12.5% in Q2 due to persistent affordability pressures and unfavorable weather, leading to a slower-than-expected recovery.
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Beer group EBITDA margin contracted 475 basis points in Q2, driven by gross margin erosion and higher selling expenses from the Efes relaunch.
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Full-year Beer group guidance was revised to a low single-digit volume decline (from growth), with EBITDA margin expected to decline by around 150 basis points.
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Beer group net debt-to-EBITDA remained elevated at 4.7 (3.3 excluding TAS 29), with plans for bond refinancing and a conservative dividend approach.
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Geopolitical uncertainties in the Middle East and higher oil prices continue to pressure consumer sentiment and input costs, adding downside risk to margins.
Q & A Highlights
Q: What are your plans for the refinancing of the 2028 bonds, and do you consider coming to the bond market or tapping into other sources of funding? Would you expect shareholder support or a more conservative approach to dividends? A: Yasemen Cayirezmez (CFO) stated that the company has already applied to the capital market to increase its limit and has started preliminary internal studies. They are planning to reapply to the bond market, considering the existing cash flow position. Regarding dividends, the company is leaning toward a conservative approach, maintaining its focus on cash flow discipline and free cash flow generation.
Q: What would be a catalyst for domestic market demand to improve, given the 15% volume decline in Turkey in the first half? A: Onur Altuerk (CEO) explained that the decline was driven by a sharper-than-anticipated deterioration in consumer purchasing power. He noted that June and July combined delivered almost 4% year-on-year growth, and August has started positively. The relaunch of the Efes Family brand could serve as a catalyst, but the consumer environment remains tough with limited visibility. He also mentioned that the company intentionally reduced inventory levels ahead of the relaunch, which temporarily pressured volumes.
Q: How did the Turkish beer market perform in the second quarter, and how much of the weakness was driven by the overall market versus company-specific factors such as portfolio mix, channel dynamics, or the relaunch? A: Onur Altuerk (CEO) confirmed that the Turkish beer market is now in decline, citing Nielsen data. He noted that the company's portfolio mix is improving, with the premium portfolio (e.g., Stella Artois) performing well. However, the on-trade and HoReCa channels are struggling due to weak purchasing power and disposable income. The traditional trade is also under pressure, while the modern channel shows some dynamism but relies on promotional pricing.
Q: What is the company's updated full-year guidance for the Beer group, and what are the key drivers behind the revision? A: Onur Altuerk (CEO) announced that Beer group volumes are now expected to decline by low single digits, compared to the previous expectation of low single-digit growth. The revision is entirely driven by the softer-than-expected recovery in Turkey beer, while international operations remain unchanged. The company also expects Beer group EBITDA margin to decline by around 150 basis points under TAS-29, or around 100 basis points excluding TAS-29, due to lower operating leverage from softer volumes.
Q: How are you working to return to positive free cash flow generation, and what are the rating agencies' views on these results? Are you at risk of a rating downgrade? A: Yasemen Cayirezmez (CFO) stated that the company is focused on balance sheet management, including working capital management, zero-based budgeting for OpEx, and CapEx management. Regarding the Eurobond, they are working on refinancing. On rating agencies, she noted that the company has been meeting with them frequently but declined to comment on their behalf regarding potential downgrades.
Q: What is the expected EBITDA margin under normal conditions, and is there any room for further contraction? A: Yasemen Cayirezmez (CFO) indicated that depending on the downside potential in Turkish beer operations, there could be an additional 100 basis points contraction in EBITDA margins. Excluding TAS-29, the contraction is expected to be limited to around 100 basis points, corresponding to an EBITDA margin of approximately 18.6% to 19%. She noted that the profitability margin expectation is already conservative, and no major deviation is expected for the full year.
Q: How did the international beer operations perform in the second quarter, and what are the key growth drivers? A: Onur Altuerk (CEO) highlighted that international beer volumes declined by 4.1% on a reported basis, but excluding the impact of the export business restructuring in Georgia, they returned to growth of 1.2%. Kazakhstan delivered its fourth consecutive quarter of volume expansion, supported by premiumization and strong commercial execution. Moldova also delivered solid growth despite a strong comparison base. The company also made progress in its asset-light expansion strategy, starting licensed production in Azerbaijan and signing toll-filling agreements in Uzbekistan and China.
Q: What is the performance outlook for the soft drink business, and how did it contribute to the consolidated results? A: Onur Altuerk (CEO) reported that CCI delivered healthy volume growth of 9.3% in the second quarter, reaching 519 million unit cases. International operations grew by 15.4%, with Pakistan delivering 17% growth, Uzbekistan expanding by 21.1%, and Kazakhstan growing by 12.7%. In Turkey, volumes declined by 1.1%, but the stills category continued to sustain positive momentum. The soft drink business remains a key contributor to the consolidated performance, supporting the company's mid-single-digit volume growth expectation.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
