Efes ’16 performance mixed
Russian volumes strong; Ukraine, Turkey disappoint
To judge by its beer volumes, Anadolu Efes endured a difficult 2016 both at home and abroad. However, a fourth quarter rebound in international markets, especially Russia, points to a better year ahead.
For calendar 2016 domestic volumes declined by almost 10%, with a reduction of 600,000 hectolitres from ’15 to ’16, taking Efes’ total an even 6mhl.
Factors ascribed to a poor performance in Turkey included the obvious, political and macroeconomic challenges. There was also the early introduction of an above-inflation rate excise tax increase.
Fourth quarter volumes in Turkey were almost level pegging, with the 1.4mhl sold representing a 0.1% decline over the same period in 2015.
Internationally, with Russia the main market for Efes beyond its Turkish homeland, volumes totalled 13.9mhl for 2016, a 0.9% decline versus 2015. However, Efes noted that when the Ukraine was excluded, volumes rose by 0.8% for the year.
Efes attributed what it described as “better than expected” performance in Russia to a variety of factors – broadly, improved consumer confidence, better than average spring and summer weather conditions. The government has also delayed introducing its restrictions on the PET sizes to 2017.
As to Q4’s performance and its promise of better things forthcoming, Russian volumes were said by Efes to have grown by double digits. This happiness was attributed to two factors, a portfolio shift to more premium products and an increased presence in the ‘Modern Trade’ channel.