Purcari Wineries (WINE) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 declined 6.8% year-over-year to RON 182.2 million, mainly due to weaker demand in Romania and distribution changes in Central and Eastern Europe, partially offset by growth in Moldova and Bulgaria.

• EBITDA increased 6% year-over-year to RON 51.9 million, with margin expanding to 28.5% due to operational efficiencies and cost discipline.

• Net profit for H1 2026 was RON 15.1 million, down 4% year-over-year, impacted by lower revenue, higher depreciation, and increased interest costs, partially offset by a one-off gain from the SERVE acquisition.

• Strategic acquisitions of SERVE Ceptura and CaraprodVin expanded the premium portfolio and vineyard footprint in Romania.

• International presence strengthened through participation in major trade fairs in Japan and China, and recognition at the Forbes Moldova Summit & Awards.

Financial highlights

• Revenue decreased by 6.8% year-over-year to RON 182.2 million in H1 2026.

• Gross profit for H1 2026 was RON 82.5 million, down 5% year-over-year, but gross margin improved to 45.3%.

• EBITDA margin for H1 2026 rose to 28.5%, up 3 percentage points year-over-year.

• Net profit was RON 15.1 million, down 4% year-over-year, with a margin of 8.3%.

• Revenue in Romania dropped 9.5%, while Bulgaria grew 23.6% and Moldova remained stable.

Outlook and guidance

• Revenue growth guidance for 2026 revised down from 10–15% to 0–5% due to weaker first half and ongoing commercial transition.

• EBITDA margin guidance maintained at 24–26%; net income margin trimmed to 10–12%.

• Management expects a stronger second half of 2026, citing encouraging early signs from the upcoming harvest and the completion of an intensive investment cycle.

• Updated dividend policy: no dividends for 2026 and future years unless decided otherwise; profits to be reinvested for growth and acquisitions.

• Outlook remains sensitive to consumer recovery in Romania, political stabilization, inflationary pressures, and currency fluctuations.