Turkish beer firm’s stock price dropping due to alcohol ban
ISTANBUL - Reuters
Tuncay Özilhan, chairman of Anadolu Efes, is seen in this file photo. AA PhotoStocks of the Turkish beer company, Anadolu Efes, has lost value over 19 percent since May 24, when a controversial draft law restricting the sale of alcohol was first approved by Parliament.
The controversial law took effect on Sept. 9, despite ongoing criticism, and the stocks of alcoholic beverage companies in Turkey are expected to continue losing value.
Many financial institutions have already decreased their target prices for local Anadolu Efes’ stocks, including Nomura, UBS, Oyak, and now Citigroup.
Citigroup decreased its target price for the company’s stocks to 24.20 liras from 29 liras this week, while Nomura decreased its target price to 28.5 liras from 25 liras. UBS decreased its target price to 25 liras from 31 liras, though Oyak Yatırım updated its target price for the company’s stocks to 25.2 liras from 26.4 liras.
Anadolu Efes stocks were sold at around 24.25 liras yesterday.
Financial institutions made these changes due to the new regulations restricting the sale and advertising of alcohol in Turkey, as well as the rise in the company’s debts in dollar.
Anadolu Efes is very active in the Russian market and the surrounding region. The company is continuing its operations with a total of 18 beer processing facilities consisting of five in Turkey, eight in Russia, two in Kazakhstan and one in Moldova, Ukraine and Georgia, along with seven malt factories and one hop factory, according to data from the company’s official website.
According to the new regulations, retailers will no longer be allowed to sell alcoholic beverages between 10 p.m. and 6 a.m., and the sale of alcohol close to schools and places of worship will also be forbidden.
Turkey’s beer market is estimated to reach a total of around $1 billion, and Anadolu Efes’ share is around 80 percent.