In the financial year 2024, Purcari Wineries Group reported a 3% year-on-year revenue increase, reaching RON 382 million (EUR ~77 million).
This moderate growth was primarily influenced by the deconsolidation of Ecosmart Union SA, a waste recycling business which contributed over 8% to Group revenues in 2023. When isolating the core business performance—bottled wine and brandy—the company achieved a robust 12% revenue growth year-on-year.
Market Highlights: Growth Driven by Core Brands
Romania, Purcari’s largest market, posted +15% YoY sales growth, driven by impressive brand performances:
- Purcari brand: +18%
- Bardar brandy: +29%
- Crama Ceptura: +8%
Moldova saw a +7% growth, with the flagship Purcari brand expanding by +10%, while Bardar edged up +2%. Bostavan, however, remained flat.
Bulgaria led the regional surge with a +30% increase, following a strategic turnaround at Angel’s Estate and continued Purcari brand success.
Poland grew modestly by +4%, but the Purcari brand alone jumped +10%, reflecting the company’s push into the premium segment in a price-sensitive market.
Czechia and Slovakia recorded +12% growth, bolstered by +13% volume growth of the mainstream Bostavan brand.
Asia, rebounding from prior challenges, showed +12% growth, with improved distribution and investments in China and Japan, despite macroeconomic pressures in China.
Brand Performance: Purcari at the Helm
- Purcari: Demonstrated the strongest momentum with +152% growth in Bulgaria, over +10% growth in Poland and Moldova, and +17% in Romania. Non-core markets added +35% YoY.
- Bostavan: Revenue increased +3%, mainly due to pricing strategy. Czechia/Slovakia led the gains at +15%, and Asia surged by +30%.
- Crama Ceptura: Delivered +7% volume growth, supported by the Motiv line targeting the RON 25–35 segment.
- Bardar: Grew +29% in Romania and +2% in Moldova, recovering in Q3 after consumer confidence pressure.
Cost Structure & Investments
Marketing and selling expenses increased 30% YoY, amounting to RON 57.9 million (EUR ~11.7 million), rising to 15.4% of core revenue (from 13.5% in 2023). This included:
- Trade marketing costs: +27% YoY to RON 29.3 million
- Salaries: +19% YoY to RON 16.0 million (EUR ~3.2 million)
- Transport: +17%, largely due to increased CIF-based exports to Asia, Africa, and Turkey
- SGR system costs: Implementation in Romania added administrative fees via RetuRO SGR SA
General and administrative expenses rose 21%, reaching RON 23.1 million (EUR ~4.65 million), mainly due to:
- Management transitions
- Incentive plans
- Increases in professional services (+38%) and taxes/fees (+42%)
Despite cost pressures, depreciation and amortisation remained stable, and bank charges declined.
Financial Impacts & Profitability
The deconsolidation of Ecosmart Union SA resulted in a net expense of RON 4.4 million (EUR ~0.88 million).
Operating profit grew 8%, thanks to improved gross margins and other income offsets. However, net finance costs surged +120%, impacted by:
- Unfavourable MDL/EUR exchange rate shifts
- Rising interest expenses (+39%) due to a 43% increase in debt exposure
A net gain of RON 2.7 million (EUR ~0.54 million) was recorded from the annual revaluation of the Group’s 10% stake in 8 Wine.
Income tax expenses rose by 72%, reaching RON 12.7 million (EUR ~2.56 million) due to the absence of 2023’s one-off tax reversal.
Net profit fell 5% year-on-year to RON 58.7 million (EUR ~11.8 million), impacted by:
- Ecosmart loss in 2024 (RON 4.4 million)
- 2023’s non-recurring gain (RON 6.3 million reversal)
However, on a normalized basis, adjusting for these one-offs, net profit grew +14% YoY.
Reported EBITDA increased 10% YoY, with adjusted EBITDA up by 14%, reflecting stronger profitability from core operations, excluding the impact of structural adjustments.
Outlook
Despite external challenges—currency headwinds, increased operational costs, and market shifts—Purcari Wineries Group has delivered strong underlying results, anchored by brand equity, product premiumisation, and geographic diversification. The Group's strategy to focus on core branded wine and brandy is paying off, and its investment in premium positioning, particularly in Central and Eastern Europe and Asia, positions it well for sustainable future growth.
Source: Purcari Wineries