2Q/2023 net profit reached RON12.8 million, flat from 1Q/2023.
However, the result from operating activities increased only by +4% YoY, representing 31.1 million RON for six-month period of 2023, as gross margin decreased from 47% to 41%, still being under pressure of cost of packaging and higher cost of bulk wine of 2020-2021 vintage.
The core business sales reached RON 145 million, a +29% upside compared to the first half of previous year. Romanian market contributed the most to the growth, increasing sales by +40% YoY, while revenues in Moldova grew +11% YoY. A positive impact on sales was ensured by sales in Bulgaria, after consolidation of new subsidiary Angel’s Estate, with sales of RON 4.5 million compared to nil in 2022.
The new business segment – waste recycling management services – have added RON 13.2 million to the total revenue.
“We are pleased to see sustained, strong revenue growth of 30% for the second quarter in a row. On margins, we may see improvements starting with the second half of the year too. Overall, we feel we are in a strong position, gaining market share, amidst overall economic weakness in the world. Our affordable luxury positioning proves its resilience, which is very encouraging”, said Victor Bostan, CEO of Purcari Wineries PCL.
(English version by Catalina Apostoiu)