In 2018, Purcari reported an increase in revenues of 19% YoY, an increase in EBITDA of 48% and an increase in net income of 58%.
As Purcari published their 2018 preliminary results, we are bringing you some key takes from the report. According to it, in 2018, Purcari observed an increase in revenues of 19% YoY, amounting to RON 168.7m. The increase could be attributed to the growth of the core markets, Romania and Poland, by 30% and 22%, respectively. Note that the sale of wine continues to be the main source of the company’s revenues (84%), whose sale increased by 17%.
Furthermore, Purcari recorded an increase in EBITDA of 48%, amounting to RON 62.6m. This increase could be attributed to above mentioned increase in revenues and also an increase in other operating income by RON 8.8m. Meanwhile, their EBITDA margin increased by 7 p.p. amounting to 37%.
The company’s net income amounted to RON 45.6m, which represents an increase of 58%. Net income margin also increased by 7 p.p., amounting to 27%
Note that for 2019 the management forecasts the EBITDA margin and net income margin to be 32-34% and 22–24%, respectively.
In February 2018, Purcari successfully concluded the IPO. The price range for the offer was initially set between RON 19 per share and RON 28 per share, but the final price was at the lower limit (EV/EBITDA 9x). In this IPO process, 9.8m shares were sold for a total of RON 186.2m. Some 90% of the shares were bought by institutional investors, while the rest were acquired by retail investors. Since the IPO the company has observed a drop of 3.2% and is currently traded at RON 18.4 per share.
