Beer Group President And Anadolu Efes CEO Onur Altürk Commented
The year began with relatively modest momentum in beer group operations, shaped by softer demand amid a volatile operating environment. Considering the ongoing uncertainties regarding the Russian business, we have classified these operations under “Financial Investments” on our Balance Sheet. Until we gain more clarity on the situation, the Russian operations will no longer be consolidated in our Profit and Loss Statements. Our primary focus in Russia remains on navigating the current landscape with resilience, prioritizing business continuity, and actively working to minimize potential disruptions.
Over the past year, we conducted a comprehensive review of our long-range plan, re-identifying our strategic priorities and establishing a new roadmap to drive sustainable growth, expand into new markets, and deliver consistent value to our stakeholders. By setting a clear direction for our future, we have redefined our vision to be the fastest growing beverage company with most loved brands that craft joy for consumers while enriching communities.
Looking ahead to 2025, we will remain focused on driving market share growth across all our markets by strengthening our core and premium brands, expanding into new geographies and product categories, accelerating top-line growth, and ensuring financial resilience through disciplined cash flow management.
In our Türkiye beer operations, we will focus on reinforcing our market leadership through brand restructuring and portfolio optimization to better align with evolving consumer preferences and changing market trends. Our focus also includes premiumization and enhancing the spirits category by leveraging our expertise in beer to capture opportunities beyond beer. These initiatives will pave the way to enhance profitability, improve free cash flow generation, and support financial flexibility and resilience in a dynamic operating environment.
Kazakhstan will continue to be a key contributor to our overall performance. We aim to strengthen our leadership in both the beer and non-alcoholic segments, while also expanding our KEG business and on-trade presence. Kazakhstan is a very important market for volume and profit but also plays a crucial role in our financial strength. In Georgia, our focus will be on gaining market share through strong commercial execution and effective pricing strategies, while disciplined working capital management remains a critical priority. Moldova is a stable and profitable market, and we will ensure continued momentum through brand strength and disciplined execution. In Ukraine, despite the ongoing challenges, we remain committed to operational stability and continuity and sustaining our market presence through proactive planning.
Beyond our core markets, we are actively pursuing localization opportunities to unlock market potential and ease capacity constraints, further supporting our long-term growth ambitions.
Building on the positive momentum of late 2024, soft drink operations delivered a strong volume performance at start of the year. Despite ongoing macroeconomic challenges and geopolitical tensions, strong volume growth was achieved across all markets, supported by the strength of a well-diversified portfolio and execution with excellence in the store.
We maintain a cautious outlook for the remainder of the year, given the persistent volatility and uncertainty across our operating markets, alongside continued softness in consumer sentiment. The performance in the first quarter, which was broadly in line with our expectations, provides confidence for the months ahead. With disciplined execution and a clear strategic focus, we remain committed to delivering long-term, sustainable value for all our stakeholders.