Purcari Wineries (WINE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 12% year-over-year to RON 91.1 million, driven by strong wine sales in Romania and Poland and 16% volume growth.

• EBITDA reached RON 23.9 million (26% margin), up 3% year-over-year; net profit was RON 9.0 million (10% margin), with adjusted net profit at RON 11.1 million (12.2% margin) after normalizing for incentive plan costs.

• Core wine business grew 18% year-over-year, outpacing guidance, while non-wine revenues declined due to discontinuation of EcoSmart.

• Strategic acquisition of Les Terres Noires in March 2025 added 17 hectares of organic vineyards in Moldova.

• Proposed dividend of RON 0.65 per share (4.3% yield), with AGM scheduled for May 23, 2025.

Financial highlights

• Total revenues up 12% year-over-year; core wine revenues up 18%.

• Gross margin improved to 44.7% from 43.7% year-over-year; gross profit up 14%.

• EBITDA margin at 26.2%, adjusted EBITDA margin at 28.5%.

• Net profit declined 17–22% year-over-year due to higher financial and operating costs; normalized net profit up 2%.

• Net finance costs more than tripled year-over-year to RON 4.4 million.

Outlook and guidance

• 2025 guidance maintained: revenue growth of 12–17%, EBITDA margin 26–28%, net income margin 13–15%.

• Revenue growth and EBITDA margin in line with guidance; net income margin slightly below due to FX and interest costs.

• CapEx planned at 15–20% of revenue for 2025–2026 to expand capacity, with 5–10% for working capital.

• Inflation in Moldova expected to ease; monetary and fiscal uncertainty remains due to upcoming elections.

• Robust commercial plans and new partnerships support full-year growth targets.