In Q1 Purcari recorded an increase in sales of 10%, an increase in EBITDA of 25% and a decrease in net profit of 7%.

In Q1 Purcari recorded an increase in sales of 10% YoY, reaching RON 46.4m. Such a solid increase came mostly on the back of Romanian market (+39% YoY), followed by Baltics and Poland, with +66% and +12% YoY respectively. Moldovan market recorded a 17% decrease, as this market was most dependent of HoReCa and DutyFree.

In terms of product mix, the premium segment showed strong performance, with Purcari brand growing +29% YoY, mainly driven by dynamics in Romania. Ceptura brand, which is traded locally in Romania grew by +31% YoY. Bostavan, the Group’s mid-price brand, recorded a decrease of -7% YoY.

Cost of goods sold amounted to RON 22.8m, representing an increase of 3% YoY. As a result of higher revenues growth gross profit increase by 17% YoY, to RON 23.6m. Such a result puts the gross margin to 50.8% (+3 p.p.), which increased on the improved product mix

SG&A costs went up by 5% YoY. Such a result was helped by overall cost discipline and cost cutting process started to defend negative impact of Covid-19 pandemic

As a result of the above, mentioned, EBITDA showed strong growth of 25% YoY, reaching RON 17.4m. Such a result puts the EBITDA margin at 37.5% (+4.4 p.p. YoY).  Meanwhile operating profit amounted to RON 14.1m, representing an increase of 18% YoY.

Going further down the P&L, Purcari recorded a net financial result of RON -4.67m, compared to RON -1.66m in Q1 2020. The net financial result was impacted significantly by FX loss, due to the depreciation of both MDL (Moldovan leu) and RON versus EUR and USD by end of quarter.

In Q1, the company recorded a net profit of RON 8m, representing a decrease of 7%. Such a decrease came as a result of the aforementioned FX losses.

2020 guidance

Due to the high uncertainty related to the effects of Covid-19, the Group suspended on April 21, 2020 its previously announced annual guidance.