Purcari Wineries, the leading wine producer in Central and Eastern Europe, has announced its preliminary unaudited financial results for 2024, demonstrating resilience and strategic growth.
The Group's revenue increased by 3% year-over-year (YoY) to RON 382.5 million (EUR 76.9 million), driven by a 13% rise in its core wine segment.
Strategic Focus and Profitability
In line with its commitment to sustainable expansion and premiumization, Purcari prioritized profitability over volume. EBITDA reached RON 107.5 million (EUR 21.6 million), while net profit stood at RON 57.4 million (EUR 11.5 million). These figures include a one-off RON 4.6 million (EUR 0.9 million) cost related to the deconsolidation of Ecosmart, the Group’s waste recycling segment, which contributed RON 30 million (EUR 6 million) in revenue in 2023 before its discontinuation. The EBITDA and net profit margins were maintained at 28% and 15%, respectively, in line with the company's financial guidance.
Gross profit margin surged to 51% in Q4, marking a 7 percentage point increase from the previous year, with an annual average of 48%. This improvement was driven by a favorable sales mix, lower-cost bulk wine from the 2022–2023 vintages, optimized packaging costs, and strong premiumization efforts.
Key Business Developments
2024 marked a pivotal year for Purcari, as the company executed strategic investments, completed a CEO transition, and reinforced its leadership team. The implementation of the ‘2X by 200’ strategy, aimed at doubling the business by 2027—Purcari’s 200th anniversary—underscores the Group’s long-term vision.
Despite incurring one-off costs related to structural adjustments, including the Ecosmart deconsolidation and tax treatment changes following an auditor switch, the company’s financial performance remained strong. Adjusted for these costs, EBITDA and net profit would have been RON 112 million (EUR 22.5 million) and RON 62 million (EUR 12.5 million), respectively.
Market Performance Highlights
- Romania: The company’s core market saw a 15% YoY increase in sales, fueled by Purcari (+17% YoY) and Bardar (+29% YoY), supported by higher volumes and selective price adjustments.
- Moldova: Sales rose 8% YoY, with a particularly strong Q4 performance. Growth was driven by the Purcari and Cuza brands, as well as improved presence in international key accounts (IKA), following a challenging start to the year due to Duty-Free headwinds.
- Poland: Despite a price-sensitive wine market, Purcari achieved a +4% YoY growth, focusing on value-driven expansion. The premium segment, led by Purcari, grew by +10% YoY from a smaller base.
- Czech Republic & Slovakia: Sales increased by +12% YoY, supported by higher volumes and selective pricing strategies.
- Bulgaria: A standout performer, achieving a +30% YoY growth. Purcari’s brand expansion resulted in a 2.5x YoY increase, while Bostavan completed its first delivery in Q4, further strengthening market presence.
Outlook for 2025
Purcari remains focused on reinforcing its core business, expanding into new markets, and diversifying its product portfolio to sustain long-term growth. The company has set the following guidance for 2025:
- Revenue Growth: +12% - 17%
- EBITDA Margin: 26% - 28%
- Net Income Margin: 13% - 15%
“Our 2024 performance reaffirms Purcari’s strong market position and ability to execute on its growth strategy. We remain committed to leveraging our powerful brand portfolio, exploring new opportunities, and driving sustainable value creation,” said Alexandru Filip, CEO of Purcari Wineries.
Source: Purcari Wineries