Credit Suisse analyst Onur Muminoglu reports that the precipitous fall in Turkish tourism in recent years continued to hit Turkish companies hard in Q1. Of the 13 major consumer-related Turkish companies under Credit Suisse’s coverage, only four managed to beat consensus EBITDA expectations in the most recent quarter.

“Weak tourism activity and the unrest in big cities after terrorist attacks hurt the operating performance in airlines and beverages,” Muminoglu noted.

In fact, following a lackluster Q1, Credit Suisse has downgraded European-listed Efes (Anadolu Efes Biracilik ve Malt Sanayi AS OTCAEBMY ISTAEFES) from Neutral to Underperform and Turkish Airlines ISTTHYAO from Outperform to Neutral.

In addition to terrorism fears, wages made a large negative impact in Q1, especially on food retailers. Muminoglu noted that the minimum wage hike has yet to filter down to domestic consumption in Turkey.

Management at top Turkish companies remains optimistic. Despite weak earnings, most companies maintained their full-year guidance.

Even with a pair of downgrades, Credit Suisse is…

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