Purcari Wineries (WINE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenues rose 12% year-over-year to RON 91.1 million, driven by strong wine sales in Romania and Poland, 16% volume growth, and selective price increases.

• EBITDA reached RON 23.9 million (26% margin), up 3% year-over-year; net profit was RON 9.0 million (10% margin), with normalized net profit at RON 11.1 million (12.2% margin) after incentive plan adjustments.

• Core wine business grew 18–19% year-over-year, outpacing guidance, while non-wine revenues declined due to discontinuation of EcoSmart.

• Strategic acquisition of Les Terres Noires SRL in March 2025 added 17 hectares of organic vineyards in Moldova.

• Proposed dividend of RON 0.65 per share (4.3% yield), with AGM scheduled for May 23, 2025.

Financial highlights

• Total revenues up 12% year-over-year; core wine revenues up 18–19%.

• Gross margin stable at 44.7–45%, with gross profit up 14% year-over-year.

• EBITDA margin at 26.2%, adjusted EBITDA margin at 28.5–29%.

• Net profit margin at 9.9–10% (RON 9 million); normalized net profit at RON 11.1 million (12–12.2% margin).

• Net debt to EBITDA at 1.01–1.77, stable versus Q4 2024.

Outlook and guidance

• 2025 guidance maintained: revenue growth of 12–17%, EBITDA margin 26–28%, net income margin 13–15%.

• Revenue growth and EBITDA margin in line with guidance; net income margin slightly below due to FX and interest costs.

• CapEx planned at 15–20% of revenue for 2025–2026 to support capacity expansion.

• Measures implemented expected to show full results throughout the year; core wine revenues projected to maintain close to 18% growth.

• Inflation in Moldova expected to ease, but monetary and fiscal uncertainty remains due to upcoming elections.