Purcari Wineries Public Co., Ltd. · BVB:WINE
Purcari Wineries Public — Q1 2024 Earnings Presentation
36 slides from Purcari Wineries Public's earnings presentation, May 15, 2024
Slide 1: Purcari Wineries Corporate presentation First Quarter 2024 financial results
Purcari Wineries Public Company Limited BVB: WINE Corporate presentation First Quarter 2024 financial results May 15, 2024 Page 1
Slide 2: Disclaimer
Disclaimer THIS PRESENTATION IS MADE AVAILABLE ON THIS WEBSITE BY PURCARI WINERIES PUBLIC COMPANY LIMITED (the Company) AND IS FOR INFORMATION PURPOSES ONLY. This presentation and its contents do not, and are not intended to, constitute or form part of, and should not be construed as, constituting o
Slide 3: Board of Directors
Board of Directors Vasile Tofan Victor Bostan Chairman of the Board of Directors CEO, Founder, Executive Director ▪ Senior Partner at Horizon Capital, with over 15 ▪ Founder of the Group, since 2002. years of experience in investments in Consumer ▪ Over 35 years of experience in the wine Goods and T
Slide 4: Today's presenters
Today’s presenters Victor Bostan Vasile Tofan Chief Executive Officer, Founder Chairman of the Board of Directors ▪ Founder of the Group, since 2002. ▪ Over 15 years' experience in FMCG ▪ Over 35 years of experience in the wine ▪ Senior Partner at Horizon Capital, with industry. focus on investments
Slide 5: Agenda
Agenda Negru de Purcari A wine of a complex and 1 intense bouquet, with notes Purcari Wineries Group of sweet fruits, coupled with fine flavors of spices and saffron. A noble red, with a rich structure, delicate tannins and a long sensual 2 aftertaste. Q1 2024 Operational Results 55% Cabernet Sauvig
Slide 6: Purcari Wineries Group at a glance
1 Purcari Wineries Group at a glance Leading wine player in Central and Eastern Europe... ... with a strong & expanding regional footprint Founded in 1827, Purcari Wineries Group is now... Geographical breakdown of sales for Q1 2024, % MD In the Top 3 most awarded wineries in the World for 2023. 4%
Slide 7: Strong track record of growth year to year
1 Strong track record of growth year to year Sustainable profitability accompanying strong growth Comments 2017 2018 2019 2020 2021 2022 2023 ▪ IPO on Bucharest Stock Exchange in February 2018 Revenue 142.3 168.1 199.1 203.7 248.1 302.5 369.7 ▪ Increased sales 2.6x since pre-IPO CoS -74.5 -85.5 -100
Slide 8: Long history of growth, high profitability
1 Long history of growth, high profitability Revenues EBITDA Net Income RON m RON m RON m 369 69 107 101 64 59 303 281 51 281 248 75 63 79 262 65 40 46 199 204 60 38 54 41 169 29 142 42 33 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 2017 2018 2019 2020 2021 2022 2023 (1) RO
Slide 9: Our business model: Affordable luxury
1 Our business model: Affordable luxury Modern cost-competitive winemaking Purcari is positioned at the intersections of three themes: ▪ Modern winemaking: the company is a brand, as opposed to appellation- centric and runs a cost-efficient business. ▪ Affordable luxury: as an aspirational brand, Pu
Slide 10: Topping competition at engagement and quality
1 Topping competition at engagement and quality Aspirational brand which consumers like sharing about Highest number of ratings and highest scores on Vivino No. of #brand uses on Instagram (k), by key Romanian brands X axis – number of Vivino ratings; Y axis – average Vivino score 17.2 4.2 4.1 4.0 3
Slide 11: Vivino feedback remains very strong, essential for online sales
1 Vivino feedback remains very strong, essential for online sales #1 presence in the crucial RON 30-60 segment, holding 6 out of TOP – 10 positions ▪ We remain obsessed with the quality of our wines, which pays off in excellent consumer feedback. ▪ In our core premium segment, 30-60 RON per bottle s
Slide 12: Growth in Vivino usage – key for consumer engagement, ecommerce
1 Growth in Vivino usage – key for consumer engagement, ecommerce 4.2 Top 1% 76 Average score out of Global ranking based on # countries where 5.0 YoY avg. score received Purcari was scanned Page 12
Slide 13: Agenda
Agenda Alb de Ceptura 1 A cheerful and bright wine Purcari Wineries Group of a straw-yellow hue, with a sunny appearance and a complex, floral bouquet. A perfectly balanced white, that harmoniously 2 combines freshness with aromas of acacia, cherry Q1 2024 Operational Results blossoms and vanilla. C
Slide 14: Key operational highlights for Q1 2024
2 Key operational highlights for Q1 2024 ▪ Revenues up 11% to RON 81.6m, primarily fueled by volume increase, additional contribution from better mix and pricing. Seasonality shifts in sales to 2Q '24 due to delayed Orthodox Easter in 2024 vs 2023. Core Wine revenues +16% YoY. Sales in April’24 show
Slide 15: P&L: Seasonality impacted sales given timing of Orthodox Easter
2 P&L: Seasonality impacted sales given timing of Orthodox Easter Purcari Group Comments RON m 1Q24 1Q23 ∆ 1Q ▪ Q1 '24 reached RON 81.6m, +11% YoY. Note: Orthodox Revenue 81.6 73.3 11% Easter fell in Q1 in 2023 vs. Q2 in 2024, so comparable bases are different. Easter volumes to show in Q2 this Cost
Slide 16: Segment reporting: Ecosmart updates
2 Segment reporting: Ecosmart updates Purcari Group Ecosmart WINE Business Note: The shareholders of Ecosmart RON m 1Q24 1Q23 ∆ 1Q 1Q24 1Q23 ∆ 1Q 1Q24 1Q23 ∆ 1Q Union SA are called upon on May 30, Revenue 81.6 73.3 11% 5.0 7.2 -31% 76.6 66.1 16% 2024, to decide on the Cost of Sales -45.9 -40.6 13% -
Slide 17: Strong balance sheet and prudent liquidity management
2 Strong balance sheet and prudent liquidity management Cash Position Net Debt RON m RON m 50.8 Cash and 128 141 98 109 Receivables 32.1 23.5 76 66 21.8 18.6 19.4 12.6 46 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Mar-24 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Mar-24 Current Ratio Cash Ratio 2.79x
Slide 18: Superior performance on markets with higher premium mix
2 Superior performance on markets with higher premium mix Market Share of sales, 1Q24 ∆ 1Q24 YoY Comments ▪ RO: +13% in 1Q24 YoY. Strong year start considering a late Easter RO 54% +13% season. Purcari and Crama Ceptura performing best. Domeniile Cuza doubling sales, albeit from a smaller base. ▪ MD
Slide 19: Ongoing growth, driven by premium brands' performance
2 Ongoing growth, driven by premium brands' performance Brand Share of sales, 1Q24 ∆ 1Q24 YoY Comments ▪ PURCARI: +17% Q1 '24 YoY on volume growth; mix and average prices stable vs. Q1 '23. Seasonality shifts in sales to 53% +17% Q2 '24 due to delayed Orthodox Easter. Premiumization strategy continu
Slide 20: Exceptional 2023 agricultural season: high-quality vintage and good yield
2 Exceptional 2023 agricultural season: high-quality vintage and good yield Good 2023 harvest Comments Own harvest and 3rd party purchases of grapes, million kg ▪ Strong own harvest despite unfavorable weather 38 conditions with moderate rains and heat waves just before harvesting. 35.1 34.1 ▪ Fulfi
Slide 21: Outstanding results at most reputable wine competitions
2 Outstanding results at most reputable wine competitions Château Purcari in the TOP 3 most In the Top 5 most successful wineries Best in Show by Country Category at awarded wineries in the World in 2024 at Mundus Vini the London Wine Competition 430 medals and awards collected in 2023 Grand Gold an
Slide 22: Continue supporting, engaging, inspiring…
2 Continue supporting, engaging, inspiring… National Contest “Heritage”, 30th Edition First “Mărțișor” Festival in Istanbul ProWein Germany, Düsseldorf Main sponsor of the National contest of history Purcari’s reds and whites provided the Awarded Best Producer from Moldova at and Romanian literature
Slide 23: Agenda
Agenda Black Doktor Dry Red A deep red wine with a 1 ruby shade, harboring a harmonious and velvety Purcari Wineries Group bouquet of mellow berries, blackcurrant and black plums. A wine with notes of maturation and soft 2 tannins Q1 2024 Operational Results 52% Cabernet Sauvignon 31% Merlot 17% Sap
Slide 24: Guidance 2024 update
3 Guidance 2024 update 2024 guidance Target 2024 guidance Comments update ▪ Following the expected discontinuation of the Ecosmart line of business, the Group updates the annual guidance to reflect this Revenue +16-20% +12-15% change. growth ▪ Ecosmart accounted for circa 8% of Group revenues in 202
Slide 25: Agenda
Agenda Divin Bardar Platinum XXO 25 years 1 Purcari Wineries Group A divin that represents the essence of Bardar’s history, a creation of emblematic taste, full-bodied, harmonious, with nuances of candied fruit, roasted nuts and chocolate. 2 Q1 2024 Operational Results Aged in the finest oak barriqu
Slide 26: Resolutions subject to AGM voting
4 Resolutions subject to AGM voting ITEM 1 Re-election of Mr. Neil McGregor as independent, non-executive Director of the Company. ITEM 2 Election of Ms. Ana-Maria Mihaescu as independent, non-executive Director of the Company. ITEM 3 Election of Mr. Alex Filip as executive Director of the Company.
Slide 27: Agenda
Agenda Deneb Syrah A silky dark red wine with 1 noble purple shades and Purcari Wineries Group spicy overtones with hints of black cherry and tobacco. 100% Syrah 2 Q1 2024 Operational Results Matured for 18 months in new French oak barrels at controlled temperature and relative humidity. 3 Guidance
Slide 28: Purcari Wineries PCL (BVB:WINE)
5 Purcari Wineries PCL (BVB:WINE) Consensus forecasts Backed by Reputable shareholders Rating Target Price Date Wood & Company Buy 17.80 Oct-23 Raiffeisen Buy 18.00 Feb-24 BT Capital Outperform 12.262 Aug-23 Ipopema Buy 11.50 Aug-23 BRK Buy 18.80 Mar-24 ▪ Included in : BET1 index, FTSE Russell Micro
Slide 29: Stock performance, WINE +74% since the end of 2022
Stock performance, WINE +74% since the end of 2022 5 (as of May-7), well ahead of BET WINE (Purcari Wineries) BET (index) M (Med Life S.A.) SFG (Sphera Franchise Group) DIGI (Digi Communications N.V.) AQ (Aquila Part) 260 “Consumer” peers = relevant companies outside of financials, 241 | SFG utility
Slide 30: Purcari shares liquidity
5 Purcari shares liquidity Rapid rise of stock’s liquidity after starting working with Relative to Market Cap, our stock is top-ranked among Market Makers for Purcari shares BET components Daily volume Ratio of daily trade value to Market Capitalisation, 2021-2024 YTD average, bps BRK 1 Purcari Wine
Slide 31: EBITDA profitability relative to WINE listed peers
5 EBITDA profitability relative to WINE listed peers Purcari vs selected Wine public companies EBITDA 2023 Margin, % 26.7% 23.2% 16.7% 12.2% 12.1% Average margin: 11.7% 10.9% 8.8% 8.6% 7.1% 6.8% 3.6% 3.5% 1 Source: Capital IQ, Company Data as per Capital IQ as of May 7th, 2024. (1) Italian Wine Bran
Slide 32: Valuation relative to wine peers
5 Valuation relative to wine peers Purcari vs Selected wine public companies P/E LTM Multiples 40.9 36.2 22.6 17.8 Average P/E: 17.3x 13.8 12.9 11.9 11.2 10.8 10.6 10.0 8.4 Source: Net Income and Market Cap as per Capital IQ as of May 7th, 2024. Note: Diluted EPS excluding extra items used for P/E m
Slide 33: Valuation relative to Romanian listed peers
5 Valuation relative to Romanian listed peers Purcari vs selected Romanian public companies P/E LTM Multiples 20.8 18.5 12.5 11.1 11.1 10.6 Average P/E: 10.9x 8.8 8.0 7.2 5.4 5.2 1 Source: Capital IQ, Company Data as per Capital IQ as of May 7th, 2024. Note: Diluted EPS excluding extra items used fo
Slide 34: High growth not reflected in valuation yet
5 High growth not reflected in valuation yet Purcari vs selected wine public companies Purcari vs selected Romanian public companies 35 35 30 30 1 25 25 Revenue CAGR’18-23* in USD Revenue CAGR’18-23 in USD 20 20 15 15 10 10 5 5 0 0 -5 -5 -10 -10 0 5 10 15 20 25 30 35 40 45 0 5 10 15 20 25 P/E Multip
Slide 35: Learn more about Purcari Wineries Group
Learn more about Purcari Wineries Group On March 5, Purcari Wineries PCL launched a new website: purcariwineries.com. The new website features a friendly, easy-to-navigate design that allows visitors to learn about the latest events and ongoing initiatives, explore our vast wine portfolio and discov
Slide 36: Thank you for your attention!
Thank you for your attention! Page 36
Purcari Wineries Public Company — Q1 2024 Earnings Presentation on 6ix