“We delivered a robust quarter, with our core wine segment rising 12% in sales in the first half of the year. We are pleased to report improved profitability, with our Gross Profit margin reaching 51% in the second quarter. Despite the challenging consumer sentiment in our regions, we remain confident in the resilience of our business model and are committed to delivering value and growth to our stakeholders”, said Victor Bostan, CEO of Purcari Wineries.
The company had a 33% EBITDA margin and an 18% net profit margin in the first six months.
On the Romanian market, Purcari reported a 16% increase in Q2/2024, accelerated by the performance of Purcari and Bardar brands. Crama Ceptura maintained its robust momentum with mid-double-digit growth. Domeniile Cuza doubled its sales, although from a smaller base.
Ecosmart Union SA, the waste recycling management business in which the Group holds a 65.75% stake, accounted for circa 8% in revenues and only 4% in EBITDA and Net Income in 2023. On May 30, 2024, Ecosmart Union SA’s shareholders decided to discontinue the company’s operations, following the regulatory changes related to the Guarantee Return System (SGR), affecting the recycling demand for glass bottles, as well as the effects of the litigation with the Environmental Fund Administration (“EFM”), as communicated in the Current Report dated April 18, 2024.
EFM initiated the insolvency proceedings in the Bucharest Court. Ecosmart Union SA’s impact on the Group’s 1H24 consolidated P&L amounts to RON 1,705,567. The Group envisages to deconsolidate Ecosmart by the end of the year, subject to the appointment of a new administrator by the Bucharest Court.
For the entire 2024, Purcari expects a 5-10% revenue increase, a 26-28% EBITDA margin and a 14-16% net profit margin.
The company in 2023 posted RON369.4 million revenues, 22% higher than the 2022 level, while net profit rose by 45% to RON59.6 million.
(English version by Catalina Apostoiu)