Related Companies
|
[]
|
||||||||
Related Funds
|
[]
|
||||||||
English
|
|||||||||
oda_ForwardLookingEvaluationsAbstract|
|
|
||||||||
oda_UpdateAnnouncementFlag|
|
|
Evet (Yes)
|
|||||||
oda_CorrectionAnnouncementFlag|
|
|
Hayır (No)
|
|||||||
oda_DateOfThePreviousNotificationAboutTheSameSubject|
|
|
27.02.2020
|
|||||||
oda_DelayedAnnouncementFlag|
|
|
Hayır (No)
|
|||||||
oda_AnnouncementContentSection|
|
|
||||||||
oda_ExplanationSection|
|
|
||||||||
oda_ExplanationTextBlock|
|
COVID-19 which has become a global pandemic, continues to affect all geographies in which we operate. As we shared in our divisional operating results, COVID-19 has been impacting our results especially since mid-March and its effect is expected to continue in the second quarter as well. Looking at the possible consequences of the crisis, we work on various scenarios to ensure pro-active management for any probable outcome. We currently run a process where we review and adjust our businesses to the impact of COVID-19 on an ongoing basis by taking into consideration its impact on country economies, the effectiveness of the measures taken by the governments, effect on other sectors that interact with ours such as tourism as well as the timing of gradual transition to normalization. Based on the current outlook for these factors, for the Beer Group we expect volumes to decline by low-double digits on annual basis. Since the beginning of the crisis, we have suspended all uncommitted OPEX and CAPEX. Year-on-year increase in cost of goods sold and operational expenses are expected to be very moderate, not only attributable to measures taken for the crisis but also to our extended Zero Based Spending program since the beginning of the year especially in our Turkish beer operations. Therefore, despite the fact that there is significant decline in our EBITDA margn in 1Q2020 compared to previous year, it is mostly driven by our ongoing momentum as we exit 2019 and seasonality of our business, and does not represent the expected full year impact on EBITDA margn contraction. As a result of savings and freezes implemented, capital expenditures will be lower than last year on absolute basis where capex to sales ratio is not to exceed previous year's level despite an expected topline decline. All in all, there are measures taken to support our P&L and free cash flow generation as we manage through the pandemic as well as the potential economic volatility thereafter. Considering the uncertainties related with the duration of the pandemic, impact on economy as well as household income and consumer spend under these difficult circumstances, it would not be realistic to maintain our 2020 expectations which we shared previously. Second quarter results will be critical for us to give a more concrete and detailed guidance going forward. *2020 outlook reflects management expectations and are based upon currently available data. Actual results are subject to future events and uncertainties including but not limited to macro-economic, financial, geopolitical and political risks, which could materially impact the Company's actual performance. |
We proclaim that our above disclosure is in conformity with the principles set down in “Material Events Communiqué” of Capital Markets Board, and it fully reflects all information coming to our knowledge on the subject matter thereof, and it is in conformity with our books, records and documents, and all reasonable efforts have been shown by our Company in order to obtain all information fully and accurately about the subject matter thereof, and we’re personally liable for the disclosures.