In 2019 Purcari recorded an increase in revenues of 18.4%, an increase in EBITDA of 25.3% and an increase in net profit of 6.1%.
As Purcari Wineries published their preliminary 2019 results, we are bringing you key takes from it. According to the report, Purcari recorded an increase in revenues of 18.4% YoY, amounting to RON 199.1m. Such an increase could be mostly attributed to a solid rise in sale of wine by 18.1% or RON 25.4m. Purcari Wine observed a high increase in sales of 33% amounting to RON 81.4m.
When observing sales by market, Purcari grew in almost all of their markets, the Romanian market, which accounts for 42% of the sales (largest market), observed an increase of 26% or RON 16.82m. Moldovan market follows with an increase of 19% or RON 7.1m, accounting for 23% of the sales.
Cost of sales amounted to RON 96.7m, representing an increase of 13.2% YoY. Such an increase could be mostly attributed to RON 9.1m rise in cost of sales of wine. Such an increase was lower than the sales growth, which had a positive impact on the gross margin by 2.3 p.p., standing at 51.4%. Meanwhile, gross profit stood at RON 102.4m, representing an increase of 23.9% YoY.
Turning our attention to SG&A, marketing expenses observed an increase by RON 5.3m, representing an increase of 38%. This increase was partially offset by 2% lower general and administrative expenses, which can be mostly attributed to lower rent payment.
In 2019, EBITDA amounted to RON 68.2m, representing an increase of 25.3% YoY. Such a result puts the EBITDA margin at 34.2% (+1.9 p.p. YoY). Operating profit amounted to RON 59.1m, representing an increase of 26%.
Purcari’s net financial result amounted to RON -6.8m, compared to RON 1.04m in 2018. Such a performance could be attributed to a net loss on equity instruments at fair value through profit or loss, of RON -0.2m, compared to RON 4.17m. As a reminder, the Group has 31.4% ownership interest in IM Glass Container Company, which is accounted as equity instruments at fair value through profit or loss.
In 2019 the Group recorded a net profit of RON 44.3m, representing an increase of 6.1% YoY. Such a result puts the profit margin at 22.2% (-2.6 p.p. YoY).
