Purcari Wineries, Central and Eastern Europe's premier wine producer, unveils robust financial performance for the first quarter of 2024.
With revenue surging by 11% to RON 81.6 million, despite the challenging comparison with the previous year's Orthodox Easter period, the company demonstrates resilience and growth momentum. EBITDA also flourished, reaching RON 23.1 million with a margin of 28%.
CEO Victor Bostan attributes the positive results to sustained demand for the company's brands, coupled with favorable market conditions. Key commercial highlights include notable revenue increases across strategic markets such as Romania, Moldova, Poland, and Bulgaria, with Purcari Wineries prioritizing margins over volumes.
Additionally, Purcari Wineries provides an update on its Ecosmart business, announcing plans to discontinue its waste recycling activities due to regulatory changes and ongoing litigation. Despite this adjustment, the company maintains its guidance for the core wine business while adjusting overall revenue growth expectations for 2024.
Below key points provide an overview of Purcari Wineries' financial performance, strategic approach, and future outlook.
- Financial Performance: Revenue for Q1 2024 grew by 11% to RON 81.6 million despite challenges like the timing of Orthodox Easter. EBITDA reached RON 23.1 million with a margin of 28%.
- Commercial Highlights: Revenue growth was observed in key markets like Romania (+13%), Moldova (+7%), Poland (+21%), Bulgaria (+88%), and Asia (+29%).
- Strategic Approach: Purcari Wineries prioritizes margins over volumes in markets like Moldova, Poland, and the Czech Republic.
- Ecosmart Business Update: The company plans to discontinue its waste recycling activities due to regulatory changes and ongoing litigation, affecting approximately 8% of revenues and 4% of EBITDA and net income.
- Market Challenges: Pricing pressures in the mainstream wine market in Poland and a weak Chinese wine market pose challenges to Purcari Wineries' growth strategy.
- Future Outlook: Despite challenges, the company remains focused on expanding its brand presence and driving growth through strategic initiatives in key markets.
As Purcari Wineries navigates evolving market dynamics and pursues strategic growth initiatives, its steadfast performance underscores its position as a leading player in the CEE wine industry.
About Purcari Wineries
Purcari Wineries, comprising brands like Purcari, Crama Ceptura, Bostavan, Bardar, Domeniile Cuza, and Angel’s Estate, stands as a key player in the Central and Eastern European (CEE) wine and brandy industry. With a vast portfolio and over 1,560 hectares of vineyards across Romania, Moldova, and Bulgaria, the group boasts seven production platforms. Purcari Wineries leads the Premium wine segment in Romania and serves as Moldova's largest wine exporter, distributing to over 40 countries.