Purcari published their H1 2021 results yesterday, showing a 25% YoY increase in sales, 24% YoY increase in EBITDA and a net profit of RON 20m (+31% YoY).

In H1 2021 sales amounted to RON 106.5m, representing an increase of 25.5% YoY. The increase in sales was fueled by a strong performance in core markets. Romania contributed the most to the growth, increasing sales by 29% YoY, while revenues in Moldova grew 76% YoY. Asian region registered the highest growth, up 160% YoY, albeit vs. a depressed based last year.

Gross profit amounted to RON 53.3m (+30.4% YoY), pushed up mainly by recovery of higher margin sales of Purcari brand in Moldova and China and its strong traction in Romania.

EBITDA was up 24.1% YoY and amounted to RON 35.1m. The increase can be attributed to higher sales, which were somewhat offset by higher G&A expenses (+34.6% YoY), mainly due to salaries increase. However, note that the salary increase was nearly entirely driven by the implementation of the Stock Option Plan and increased price quotation of Purcari’s shares. Marketing expenses soared, posting a 43.7% YoY increase. Note that the main drivers behind the increase were trade activities to support sales and increase in commercial salaries, impacted by above mentioned implementation of the stock option plan.

Below the operating line, the company’s net financial result improved by 12.2% YoY, amounting to RON -3.5m. The improvement was due to lower interest expenses from an earlier reimbursement of loans, however the impact was partially offset by the depreciation of MDL which increased FX loss by 69% YoY.

As a result of the abovementioned, Purcari’s net profit amounted to RON 20.4m (+30.8% YoY).

Purcari Key Financials (RON 000)