Half Year 2026 Purcari Wineries PCL Earnings Call Transcript
Key Points
- Purcari Wineries PCL (BSE:WINE) successfully completed two M&A deals in Romania, expanding its vineyard footprint by nearly 100 hectares in key wine regions.
- Despite a revenue decline, the company improved its EBITDA margin to 28.5%, one of the highest levels, driven by disciplined cost management and operational efficiency.
- Gross margin improved to 45.3% from 44.6% year-over-year, reflecting successful cost negotiations on packaging and production inputs.
- The company maintained strong growth in Bulgaria, with double-digit revenue increases, and improved commercial performance in Turkey and Croatia.
- Purcari Wineries PCL (BSE:WINE) launched a new premium wine brand, Parcela, and is investing in future growth markets like Asia, despite current challenges.
- The company managed to keep total operational costs flat year-over-year, a first in three years, despite inflationary pressures on logistics and fuel.
- Total revenue decreased by 6.8% to RON182 million, primarily due to weaker consumer demand in Romania and Central Europe, impacting overall performance.
- Romania, the company's largest market, saw a 9% decline in sales, reflecting pressure on household budgets and reduced consumption of premium wines.
- Sales in Central and Eastern Europe, especially Poland, declined significantly, particularly for the Bostavan brand, due to changing consumer trends.
- Net debt increased substantially to RON345 million from RON270 million, with net debt-to-EBITDA rising to 2.95, driven by heavy capital expenditure and lower cash flow.
- The company revised its 2026 revenue growth guidance downward to 0-5% from the previous 10-15% target, citing market headwinds and geopolitical uncertainties.
- Net income margin guidance was reduced to 10-12% from 11-14%, reflecting concerns over currency fluctuations and the need for continued investment.
Good afternoon, everyone, and thank you for joining Purcari Wineries Group results for the first half of 2026 results. I'm Eugeniu Baltag, the Head of IR at Purcari. And today with me is Mr. Anatolie Belibov, the CFO of the group; and Victoria Moldovan, the Senior IR of the group.
We will start with a brief overview of the key highlights for the period, then we will walk you through the financials, main operational developments across our markets, and we will close with our guidance update for 2026. So after that, we will open the line for Q&A.
So before we continue, please note that this conference may include forward-looking statements that involve risks and uncertainties. The financial figures presented are unaudited and should be reviewed together with a full reporting package available on our website or on the Bucharest Stock Exchange website as well.
So of course, this half was a very interesting one. First of all, I have to mention that our group managed to finalize two M&A deals, both of them are
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