Purcari Wineries (WINE) Q4 2024 earnings summary

Executive summary

• Revenue grew 3–3.5% year-over-year to RON 382.5m, led by 13% growth in the core wine segment and supported by acquisitions in Moldova, Romania, and Turkey.

• EBITDA reached RON 107.4–112.0m (28% margin); Net Profit RON 54.3–57.4m (15% margin), both impacted by one-off Ecosmart deconsolidation costs.

• CEO transition completed, with Alex Filip succeeding Victor Bostan effective Jan 1, 2025; new '2X by 200' strategy launched to double business by 2027.

• Dividend of 0.65 RON/share paid (4.5% yield), up from 0.55 RON/share in 2023; maintained inclusion in major indexes.

• Recognized as best winery in Moldova in 2024, with multiple international awards.

Financial highlights

• Group revenue: RON 382.5m (+3–3.5% YoY); core wine revenue: +13% YoY.

• Gross profit: RON 184.2m (+19% YoY); gross margin improved to 48% (+6pp YoY); Q4 gross margin 51%.

• EBITDA: RON 107.4–112.0m (+7–11% YoY); normalized EBITDA margin 29%.

• Net profit: RON 54.3–57.4m (15% margin), impacted by one-off Ecosmart deconsolidation; normalized net profit RON 61.9–62m (16% margin).

• Operating cash flow: RON 34.5m, down from RON 50.6m in 2023, due to higher working capital needs.

Outlook and guidance

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

• Focus on portfolio innovation, premiumization, and new product launches in core and new markets.

• Profitability expected to remain consistent, with cost increases managed through pricing and operational efficiency.

• Investments in international sales teams and digitalization to drive growth and efficiency.

• Inflation expected to moderate, but input cost pressures and margin management remain priorities.