The analyzes baseball tickets impact of seahawks understand the global economic crisis is being felt in Turkey, due to thefact that a deep recession for the country in 2009 is all but unavoidable, asdiscussed in this recently published Turkey Food & Drink Report for Q309. Withthe global economic outlook deteriorating further, and with a protracted creditconstriction accentuating waning foreign capital inflows, it is clear that therewill be some tough times ahead for the country. Turkey is facing its largesteconomic contraction in at least two decades, with our real GDP growth forecastrevised to -5.7% for 2009, which will have a clear impact on domestic demand,including the food and drink sector. Already a number of industry leaders have reported poor full-year results for2008. In April, local drinks major Anadolu Efes reported a fall in net profitdespite double-digit sales growth.
The company's net profit dropped by 17%year-on-year (y-o-y) to TRY309.7mn (US$193.4mn) while turnover grew by 21% y-o-yto hit TRY3.67bn (US$2.33bn) ken griffey jr . Meanwhile, Anadolu Efes' subsidiary Efes BreweriesInternational (EBI) posted a net loss of US$57.4mn for FY08, despite excellentrevenue growth, as sales increased 24.1% y-o-y to US$1.04bn seatle seahawks . An adverse foreignexchange climate has hampered both drinks companies seattle mariners . Despite EBI's turnoverpicking up sharply in FY08, turnover growth slowed down markedly in Q408,reflecting a noticeable deterioration in consumer confidence across EBI'smarkets, including Russia where it experienced a 5% y-o-y contraction in thatquarter seahawks . Meanwhile, Turkey-based soft drinks giant Coca-Cola Içecek (CCI) also announcedpoor results, as net profit fell by 47% y-o-y, despite strong volume growth. Thecompany attributed this hit to its bottom line to an unfavourable foreignexchange climate.
Like EBI, CCI's international turnover could come under strainin 2009, as its foreign business includes a number of CIS markets that areexpected to fall into deep recessions this year mariners quilt . However, we note that while therecession of 2009 will certainly impinge on CCI's turnover potential, the softdrinks industry (particularly the carbonates and bottled water segments)typically performs well during periods of economic strain - as belt tightenedconsumers are likely to turn to cheaper carbonates ahead of more expensivesegments such as juices seatle seahawks . CCI's outlook is bolstered further by the fact that itfaces fairly limited competition from alcoholic drinks in its predominantlyIslamic domestic market seattle mariners . Another drinks producer which is hoping to do well out of the current crisis inLipton, the world's largest tea brand . Unilever, the firm that produces Liptonteas, has said that sales have actually been increasing in the face of thecurrent financial crisis as more consumers entertain at home. As was the casewith Turkey's other recessions over the past two decades, we expect a recoveryto positive growth in subsequent years.
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