Purcari Wineries (WINE) Q2 2025 earnings summary

Executive summary

• Achieved third all-time high quarterly sales, with H1 2025 revenue up 18% YoY to RON 195.4m and Q2 sales up 40% versus Q2 2024, driven by strong commercial momentum and new product launches.

• Net profit for H1 2025 was RON 15.6m, down 47% YoY, impacted by lower gross margin, higher operating expenses, and FX losses.

• MASPEX became majority shareholder (72.8%) following a voluntary takeover bid; founder retains 15% stake.

• Dividend of RON 0.65/share (RON 26.3m total) approved, with payment scheduled for September 2025, yielding 4.3% on announcement date.

• Extended Negru de Purcari range, launched Bardar XO Anniversary Edition, and received multiple international wine awards.

Financial highlights

• Gross margin declined to 44.6% (from 47.4% YoY and 51.0% in Q2 2024); EBITDA margin at 25.1% (down from 33.3%), with EBITDA for H1 2025 at RON 49.1m, down 13% YoY.

• Operating expenses rose 30% YoY, mainly from increased trade, marketing, and salary costs.

• Net finance cost surged 199% YoY, mainly due to RON 7–7.5m FX loss and higher interest expenses.

• Total assets increased 8% from 2024 year-end, mainly from RON 34m in capital expenditures.

• Normalized net profit (excluding extraordinary/MIP costs) was RON 30.1m, up 3% YoY.

Outlook and guidance

• 2025 revenue growth guidance maintained at 12–17%; H1 actuals at +18%.

• EBITDA margin guidance 26–28% (H1 actual: 25%); net income margin guidance 13–15% (H1 actual: 8%).

• Upward pressure on grape acquisition prices expected due to climate-related shortages in Moldova, Bulgaria, and Romania.

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

• Persistent monetary and fiscal uncertainty in Romania and Moldova may impact results.