Business Desk 
Nov 07, 2024
Coca-Cola Icecek AS reported a significant dip in its third-quarter sales in Pakistan and Turkey, largely attributed to regional calls for boycotts against brands with perceived ties to Israel amidst ongoing Middle Eastern conflict, as well as economic challenges in both countries, according to a recent Bloomberg report.
In its filing, the Istanbul-based company disclosed a 12.2% year-over-year drop in Turkish sales volume, alongside an even sharper 22.9% fall in Pakistan. The sales downturn coincided with a 7.1% drop in Coca-Cola Icecek’s share price to 45.12 liras on the Istanbul exchange, marking its steepest decline since May 2023. The decline continued into Wednesday, with shares slipping an additional 4.8%.
The company is not alone in facing the impact of regional tensions; major US fast-food brands, including McDonald’s and KFC, are experiencing similar hurdles in various markets across Asia, the Middle East, and parts of Europe. Many Muslim consumers in these areas have shifted their spending habits, reducing their patronage of American brands in response to the situation in Gaza.
The boycott and sales slump coincided with a 61% year-over-year plunge in Coca-Cola Icecek’s quarterly net income, which dropped to 5.17 billion liras ($151 million), below analysts’ predictions of 5.72 billion liras, as compiled by Bloomberg. The company also adjusted its expectations for net-sales-revenue growth going forward, reflecting the uncertain market environment.
Onur Alturk, president of the Beer Group and CEO of Anadolu Efes, Coca-Cola Icecek’s parent company, commented on the mixed results: “This quarter was shaped by a highly dynamic environment, yielding a mix of challenges in some markets and notable successes in others. While our consolidated performance came in slightly below expectations, we remain committed to our long-term strategy.”
While sales were down in Pakistan and Turkey, Coca-Cola Icecek reported a 1.3% growth in other international markets, boosted by strong performance in Iraq, Azerbaijan, and a market recovery in Kazakhstan. The company’s diverse portfolio of soft drinks and beers across these regions offered some resilience amid the broader market challenges.
