BEER GROUP PRESIDENT AND ANADOLU EFES CEO ONUR ALTÜRK COMMENTED

Following the solid results achieved in the first half of the year, market complexities became more evident in the third quarter, particularly in the domestic beer market. Nevertheless, we managed to sustain flat YTD beer volumes, as our diversified market presence enabled us to offset softness in certain geographies with growth in others. On a consolidated basis, Anadolu Efes delivered a robust 7.5% increase in YTD, demonstrating the continued strength of our diverse portfolio and geography as well as the resilience of our operations amid a challenging operating environment.

Beer Group volumes contracted in the third quarter, mainly driven by a slowdown in Türkiye. Following four consecutive years of strong growth, Türkiye beer operations experienced a moderation in demand. While this deceleration had been anticipated to some extent due to a high base of previous years, the decline was more than expected. The softening of volumes was largely attributable to continued pressure on consumer purchasing power, despite historically high levels of discounting across the market. In addition, a lower number of tourists compared to last year adversely impacted the performance of the HORECA channel. We continue to navigate market headwinds through strengthening our portfolio and execution, supported by our strong route-to-market capabilities, agility in the field, and a highly committed sales team. In our international beer operations, a slight decline was recorded on average, yet Kazakhstan continued the good momentum from previous period.

Our soft drinks operations delivered high-single digits volume growth with all international markets contributing positively, namely Central Asia. In Türkiye, volumes declined slightly, reflecting a deliberate deprioritization of certain categories in line with the focus on driving sustainable value creation.

As I highlighted at the beginning of the year, one of our key priorities for 2025 and beyond is to expand into new geographies and product categories within the Beer Group. In this context, we took two important steps in the third quarter. First, a non-binding preliminary agreement was signed with Tariş Üzüm for the acquisition of 60% of the shares of the Company. We are excited to add the raki brand “Mercan” to our portfolio, further strengthening and broadening our product offerings in the spirits category. In addition, a license agreement was signed with Salyan Food Products in Azerbaijan for the production, sales, distribution, and marketing of Efes and Efes Draft brands within Azerbaijan; marking a strategic step in expanding our regional operational footprint.

Another key area I emphasized earlier in the year is that strengthening Free Cash Flow remains a clear business priority, guiding both our operational and financial decisions. 2025 continues to be a challenging year, as intensified discounting in Türkiye limits profitability margin expansion, while high borrowing costs continue to weigh on cash generation. Nevertheless, we are taking concrete actions to support Free Cash Flow generation from cost and CAPEX optimization to working capital improvement initiatives in order to improve our leverage metrics for 2026 and beyond.

We have been operating under persistent macroeconomic volatility, political uncertainties, sticky inflation, and fluctuating demand dynamics all at varying degrees across our operating countries for a long period of time. Yet, we continue to navigate these challenges effectively, supported by our strong execution capabilities and the resilience of our brand portfolio. These strengths give us confidence not only in sustaining profitable growth, but also in successfully delivering on our long-term strategic ambitions.