In H1 2023, Purcari recorded revenue growth of 30.3% YoY, an EBITDA increase of 29.3%, and a net profit of RON 12.8m, an increase of 43.8% YoY.
In total, the sales revenue amounted to RON 161.4m, representing an increase of 30.3% YoY. This came as a result of higher volumes as well as price increases. Furthermore, Core Wine revenues increased by 29% YoY, with Ecosmart contributing RON 13.2m. All of the brands were performing well in H1, with Purcari increasing the most, by 38% YoY. In terms of regions, Romania and Moldova both recorded double-digit growth, while China recorded a slowdown due to the general macroeconomic situation in the country.
Cost of sales meanwhile, increased by 45% YoY, to RON 94.5m, leading to a gross profit of RON 67m, also implying a gross profit margin of 41%, a decrease of 6 p.p. YoY. The Company does note that the normalized gross profit margin amounted to 46% (this accounts for EcoSmart and Angel Estate, both of which yield lower gross margins). The decrease in the margin came mainly as a result of higher packaging prices, as well as still a lot of expensive bulk from the 2020 and 2021 vintages. Moving on, marketing and selling expenses increased by 52% YoY and amounted to RON 19.2m, in line with the sales growth. Meanwhile, G&A expenses increased by 19% YoY and amounted to RON 17.5m.
Taken together, this led to an EBITDA of RON 44.5m, an increase of 15% YoY, which would also mean that the EBITDA margin amounted to 28%, a decrease of 4 p.p. YoY. The Company notes that the decrease in the margin came as a result of difficult global economic and geopolitical circumstances which affected the operational activity. Finally, the net profit amounted to RON 25.5m, an increase of 22% YoY, with a net profit margin of 16%, a decrease of 1 p.p. YoY.
Purcari Wineries key financials (H1 2023 vs. H1 2022, RONm)
Source: Purcari Wineries, InterCapital Research
Purcari also touched on its guidance for 2023. For the year, the Company expects revenue growth of between 18-22%, with growth in the WINE segment of between 14-18%. Furthermore, EBITDA margin is expected at 22-26%, with the net profit margin expected at 12-16%.
