Purcari Publishes H1 2019 Results

In H1 the company observed an increase in sales of 25% YoY, increase in adj. EBITDA of 30% and a net profit of RON 17.1m (+7%).

As Purcari Wineries published their H1 2019 report, we are brining you key takes from it. According to the report, the company observed an increase in revenue of 25% YoY, amounting to RON 87.8m.

Such an increase could be attributed to the strong performance in core markets. Poland contributed most to the growth, increasing 47% YoY, Czechia and Slovakia increased 24% YoY, while Romania and Moldova both grew 16% YoY. When observing the sales by market, Romania makes for 40.4% of the total sales. Moldova and Poland follow with 20.5% and 12.1%, respectively.

Gross margin declined to 49% YoY (decrease of 2 p.p.) pushed down by higher costs of raw materials, while gross profit amounted to RON 43.2m (+20%).

When observing Purcari’s G&A, it amounted to RON 11.4m which represents a decrease of 8% YoY. The company also maintained a stable share of marketing and selling expenses (RON 6.84m), slightly below 8% of revenue, despite the accelerating revenue growth.

As a result, the adjusted EBITDA grew up by 30%, amounting to RON 30.11m.

Going further down the P&L, Purcari observed a high increase in net financial loss of 951%, amounting to RON – 5.4m (compared to RON -0.52m). Such an increase was impacted by one-off non-operating, non-cash FX loss on revaluation of the foreign currency-denominated debt of Moldovan entities, as a result of weakening Moldovan Leu, the local currency for Bostavan, Purcari and Bardar operations.

In H1, the company observed an increase in net profit of 7% YoY, amounting to RON 17.1m

It is also noteworthy that in H1, Purcari announced a share buyback program which provides for the purchase of a maximum number of 200,000 shares. To read more about the mentioned buyback, click here.

Purcari Performace (H1 2018 vs H1 2019) (RON m)

*Adjusted for non-recurring G&A expenses related to IPO

Category : Flash News

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