Purcari Wineries (WINE) Q4 2024 earnings summary

Executive summary

• Revenue grew to RON 382.5 million in 2024, up 3–3.5% year-over-year, led by 13% growth in the core wine segment and supported by new acquisitions in Moldova, Romania, and Turkey.

• EBITDA reached RON 107.4–107.5 million (28% margin), with net profit at RON 57.4 million (15% margin), both impacted by one-off costs from Ecosmart deconsolidation.

• Adjusted/normalized EBITDA was RON 112 million (29% margin), and normalized net profit was close to RON 62 million.

• CEO transition completed, with Alex Filip succeeding Victor Bostan as of January 2025; new '2X by 200' strategy launched to double business by 2027.

• Dividend of RON 0.65 per share paid, with continued inclusion in major indexes and a market maker added.

Financial highlights

• Revenue: RON 382.5 million (+3–3.5% YoY); core wine revenue up 13% YoY.

• Gross profit: RON 184.2 million (+19% YoY); gross margin improved to 48% (Q4: 51%).

• EBITDA: RON 107.4–107.5 million (+7% YoY); adjusted/normalized EBITDA: RON 112 million (+11–14% YoY).

• Net profit: RON 57.4 million (Group), RON 54.3 million (attributable to owners), normalized net profit: RON 61.9–62 million.

• SG&A/OpEx increased 31% YoY, driven by marketing, trade investments, and salary inflation.

Outlook and guidance

• 2025 revenue growth targeted at 12–17%, with EBITDA margin guidance at 26–28% and net income margin at 13–15%.

• Focus on portfolio innovation, premiumization, and new market development, with continued investment in operational efficiency and digitization.

• Ongoing investments in production capacity and modernization, especially in Bulgaria and Moldova.

• Anticipates higher costs from Romania's warranty return system, with mitigation via pricing and cost-saving measures.