Turkey: Anadolu Efes sold about 304 million litres of beer in Q1 2005

Anadolu Efes Biracýlýk ve Malt Sanayii A.Þ. (Anadolu Efes) announced on May 28 that in Q1 2005 Company’s total beer sales volume reached 304 million liters growing by 13% over the same period in 2004.

Company’s total soft drinks volume including the Turkish Coca-Cola operations grew by 15% reaching 63million unit cases in Q12005.

Successful top line growth in all business segments led consolidated sales revenues to grow ahead of volumes by 18% reaching 216millionUSD.

46% of total Group revenues are generated in international operations, Anadolu Efes said. Consolidated COP reached to 51million USD in Q12005 with a margin of 23%; up by 10% vs Q1 2004. Consolidated net profit decreased by 28% to 12 million USD in Q12005 from 16 million USD in Q1 2004. Despite gains in Profit from Operations level, the affects resulting in a decline in the Income before Tax level include (i) the change in the accounting policy of the income derived from the change in the market value of investment in securities which impacted the Other Income and (ii) the fluctuations of USD versus EURO during the three-month period ended on 31.03.2005 which impacted both the Other Expense and Financial Expenses. Consolidated net cash position is 20million USD as of Q12005.

Turkey Beer Results: Despite full reflection of the affect of the increased special consumption tax to the sales prices, domestic sales volume increased by 6% to 139 million liters in Q1 2005. Including the export volume, which grew 37% in Q1 2005, total sales volume of our Turkey beer operations reached 148 million liters up 8% vs. Q1 2004. Revenues increased to 116 million USD in Q1 2005, up 16% from100 million USD in Q1 2004. In April 2005 Anadolu Efes launched the famous Australian beer and the world’s 7th largest international beer brand “Foster’s”, in Turkey.

Anadolu Efes’ brewing operations in Commonwealth of Independent States (“CIS”), Eastern Europe and the Balkans are managed by Efes Breweries International N.V.(“EBI”), incorporated in the Netherlands and a 70% subsidiary of Anadolu Efes.

EBI currently operates 9 breweries and 2 malteries with a total annual capacity of 11million hectoliters of beer and 50,000 tons of malt. EBI completed a successful listing of GDRs on the London Stock Exchange in October 2004 and currently is a publicly traded company (IOB: EBID). While maintaining the growth organically in a highly competitive landscape, EBI continued the integration of the new operations that wereacquiredand delivered resultsin line with or ahead of its business plan.

Sales volume was 156 million liters, representing an increase of 19% over 130 million liters in Q12004.
In the Russian beer market, the world’s fifth largest beer market, EBI grew its sales volumes by 18% in Q1 2005 over the same period in 2004 vs. an estimated market growth of 3% and had an average market share of 8% by value in the period.

“Stary Melnik”, one of the leading brands in the local premium segment, is the best selling brand by value in the highly competitive Moscow beer market and the 4thlargest brand by value in the Russian beer market as a whole.(AC Nielsen, YTD March2005).

In EBI’s other markets, it maintains robust positions, with strong beer brands in the local premium and mid-priced segments. Net sales on a consolidated basis in Q1 2005 and Q1 2004 were 82 million USD and 69 million USD, respectively, reflecting growth of 19% over the same period of the previous year, in line with the volume growth in Q12005.

Anadolu Efes Biracýlýk ve Malt Sanayii A.Þ. (Anadolu Efes), listed in the Istanbul Stock Exchange (AEFES.IS), is the holding company of Efes Beverage Group’s beverage interests as well as an operating company, under which Turkey beer operations are managed. The Efes Beverage Group is composed of Anadolu Efes and its subsidiaries and affiliates that produce and market beer, malt, soft drinks across a geography including Turkey, Russia, the CIS countries and Southeast Europe. The Group operates with 14 breweries, 4 malteries and 9 Coca-Cola bottling facilities in 9countries and has an annual brewing capacity of around 2.0 billion liters, malting capacity of 150,000 tons and Coca-Cola bottling capacity of 420 million unit cases per year.

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