Purcari Wineries Public Co., Ltd. · BVB:WINE
Purcari Wineries Public — Investor Presentation (April 2025)
56 slides from Purcari Wineries Public's investor presentation, April 2025
Slide 1: Purcari Wineries Corporate Presentation: Preliminary 2024 Financial Results
Purcari Wineries Public Company Limited BVB: WINE Corporate Presentation Preliminary 2024 Financial Results 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 Founder, Executive Director ▪ Senior Partner at Horizon Capital, with over 15 years ▪ Founder of the Group, since 2002. of experience in investments in Consumer Goods ▪ Over 35 years of experience in the wine industry.
Slide 4: Agenda
Agenda Nocturne Rară Neagră 1 A wine of a vibrant ruby-red Purcari Wineries Group hue, revealing scents of ripe plums, vanilla, strawberries, currants, and cherries. The flavor is deep and layered, with a touch of spice. Soft, 2 velvety tannins enhance its Strategy 2x by 200 smooth texture. 100% Rar
Slide 5: Our purpose
Our purpose Build a global wine-making champion dedicated to preserving and promoting globally the rich wine-making heritage and indigenous grape varieties of New Europe Wines. We aim to inspire our people to thrive and excel through hard work, determination, and collaboration. Page 5
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 12M 2024, % MD In the Top 3 most awarded wineries in the World for 2023. Th
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 2024 ▪ IPO on Bucharest Stock Exchange in February 2018 ▪ Increased sales 2.6x since pre-IPO Revenue 142.3 168.1 199.1 203.7 248.1 302.5 369.6 382.5 CoS (74.5
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 107 107 382 69 369 101 64 281 59 57 303 281 75 51 248 79 63 65 262 60 40 46 38 199 204 54 41 169 42 29 142 33 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020 2021 2022 2023 2024 2017 2018 2019 2020
Slide 9: Our mission, vision and values
1 Our mission, vision and values Our mission Our values To bring joy to people by offering them We are Determined We are doing everything to win the hearts of the inspiration, fair wines of high quality and consumer, and we are succeeding admirably. excellent value for money. Ethical We always do th
Slide 10: 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 11: Purcari formula: operational excellence meets sound marketing
1 Purcari formula: operational excellence meets sound marketing Operational excellence Clever marketing ▪ Location: low-cost production platform in Romania, ▪ Philosophy: be genuine, talk to the consumer, don’t Moldova; very competitive vs. other EU, New world sell to them ▪ Scale: large and growing
Slide 12: Consumption trends: wine vs. alternative drinks, pushing demand up
1 Consumption trends: wine vs. alternative drinks, pushing demand up Shifting consumer preferences US Gallup survey: Do you most drink liquor, wine or beer? % 47 46 “Rosé Is Seeing Explosive Growth as Its 45 44 Summer Rival, Beer, Goes Flat.” 43 43 ‒ 3 August 2017 42 42 42 42 41 41 41 40 40 39 39 39
Slide 13: Vision: be the consolidator of a fragmented market
1 Vision: be the consolidator of a fragmented market Volume share top-3 players by country, % 79 82 74 #3 68 63 #2 41 39 18 #1 10 Beer Spirits Wine Beer Spirits Wine Beer Spirits Wine Unlike beer or spirits, wine market remains very fragmented; players who have the scale and sophistication needed –
Slide 14: Moldova has the largest vineyard area per hundred people globally
1 Moldova has the largest vineyard area per hundred people globally Per Hundred People vineyard area worldwide, 2023 Hectares per hundred people Europe Rest of the World 3.9 2.0 1.8 1.3 1.2 1.2 1.0 0.9 0.9 0.9 0.8 0.6 0.6 0.6 0.5 0.5 0.5 0.2 0.2 0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.
Slide 15: 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 18.2 4.2 4.1 4.0 3
Slide 16: Growth in Vivino usage
1 Growth in Vivino usage – key for consumer engagement, ecommerce 4.1 Top 1% 76 Average score out of Global ranking based on # countries where 5.0 YoY avg. score received Purcari was scanned Page 16
Slide 17: Very strong revealed comparative advantage (RCA) in Wine
1 Very strong revealed comparative advantage (RCA) in Wine Index1 of revealed comparative advantage in wine, 2016 Europe Rest of the World 26 26 16 15 9 7 7 7 62 4 4 1 1 Georgia Moldova New Chile France Portugal Argentina Italy Spain Australia South Greece United Zealand Africa Kingdom In Moldova, t
Slide 18: Wine markets evolve, as wine moves from novelty to masses
1 Wine markets evolve, as wine moves from novelty to masses Stage 3: “Mass appeal” Stage 2: ▪ Customer taste highly “Beyond early adopters” developed; abundance of offers ▪ Wine treated as a day-to- day item ▪ Customer taste evolves, ▪ Local brands highly Stage 1: diversity increases developed, high
Slide 19: Global wine belt does leave ample space for pushing New Frontier ahead
1 Global wine belt does leave ample space for pushing New Frontier ahead (5) Napa (US); (6) Bordeaux (FR); (7) Mendoza (AR); (8) Marlborough (NZ). Source: Vinepair – The World’s Coffee & Wine Belts Page 19
Slide 20: Agenda
Agenda Sapiens Cabernet Sauvignon 1 A wine of a medium ruby Purcari Wineries Group color with vivid reflections, combined with aromas of fine black apple, ripe plums, black currants, and spices. A full, elegant and structured 2 taste, with notes of ripe fruit, Strategy 2x by 200 black pepper, chocol
Slide 21: Our strategy in a nutshell: reach RON 200+ mn EBITDA by 2027
2 Our strategy in a nutshell: reach RON 200+ mn EBITDA by 2027 MID-TERM AMBITION: 2X by 200 CORE ELEMENTS Operate market-leading wineries across five New Profitable growth enabled by Europe Wines markets and achieve EBITDA RON 200+ mn; grow 2x on key operating metrics by the Wine-making excellence T
Slide 22: Purpose and ambition sustained by strategic pillars and enablers (1/7)
2 Purpose and ambition sustained by strategic pillars and enablers (1/7) Build a global wine-making champion that promotes the rich wine- making heritage of New Europe Wines EBITDA of RON 200+ mn on sales of RON 600+ mn Profitable Wine-making Commercial New growth excellence excellence Europe Wines
Slide 23: Profitable growth (2/7)
2 Purpose and ambition sustained by strategic pillars and enablers (2/7) PROFITABLE GROWTH FOCUS ON IMPROVING PORTFOLIO MIX AND PURSUE SYSTEMATIC M&A € Sales % Margin Product quality STRATEGIC OBJECTIVES TARGETED OUTCOMES IMPACT Accelerated growth in sales of premium brands (e.g., Purcari Accelerate
Slide 24: Wine-making excellence: viticulture (3/7)
2 Purpose and ambition sustained by strategic pillars and enablers (3/7) WINE-MAKING EXCELLENCE: VITICULTURE EXPAND OUR FOOTPRINT TO SECURE HIGH-QUALITY GRAPES AND IMPROVE YIELDS € Sales % Margin Product quality STRATEGIC OBJECTIVES TARGETED OUTCOMES IMPACT Reduced volatility in yields across years,
Slide 25: Wine-making excellence: production (4/7)
2 Purpose and ambition sustained by strategic pillars and enablers (4/7) WINE-MAKING EXCELLENCE: PRODUCTION EXPAND OUR CAPACITY AND IMPROVE PRODUCT QUALITY € Sales % Margin Product quality STRATEGIC OBJECTIVES TARGETED OUTCOMES IMPACT Increase production Increased capacity across the value chain (i.
Slide 26: Commercial excellence (5/7)
2 Purpose and ambition sustained by strategic pillars and enablers (5/7) COMMERCIAL EXCELLENCE IMPROVE CAPABILITIES AND M&S SPEND EFFICIENCY € Sales % Margin Product quality STRATEGIC OBJECTIVES TARGETED OUTCOMES IMPACT Increased efficiency in allocating marketing budgets to maximize Increase M&S sp
Slide 27: Enablers: talent and culture (6/7)
2 Purpose and ambition sustained by strategic pillars and enablers (6/7) ENABLERS: TALENT AND CULTURE SECURE THE KEY CAPABILITIES TO DELIVER OUR GROWTH PLANS STRATEGIC OBJECTIVES TARGETED OUTCOMES Strengthen company Increased employee engagement, improved work environment and talent retention, cultu
Slide 28: Enablers: tools and processes (7/7)
2 Purpose and ambition sustained by strategic pillars and enablers (7/7) ENABLERS: TOOLS AND PROCESSES LEVERAGE TECHNOLOGY AND DATA-DRIVEN PROCESSES TO ENABLE A VIRTUOUS CIRCLE BOTTLE GRAPES Objectives: Objectives: Automate bottling planning and real-time stock Digitize vine classification managemen
Slide 29: Agenda
Agenda Angel’s Estate Stallion It’s intense fruity flavor is 1 complemented by sweet aromas of blueberry, Purcari Wineries Group cherry, black truffle, and bitter chocolate with a touch of toasted cinnamon. The body is well-balanced, juicy, and full, offering a 2 complex and Strategy 2x by 200 elega
Slide 30: Selected highlights for 2024
3 Selected highlights for 2024 ▪ New products and markets: Successfully launched new products in multiple markets Commercial (e.g., MENA, Americas), expanding our footprint. updates ▪ Events: Mircea Lucescu, head coach of Romania’s National Football Team, became Purcari ambassador. ▪ EBITDA reached
Slide 31: Strong performance driven by resilient operations, enhanced profitability
3 Strong performance driven by resilient operations, enhanced profitability Purcari Group Ecosmart WINE Business ▪ Revenues increased by 3% YoY in 2024, reflecting Ecosmart's discontinuation as of RON m 2024 2023 ∆ 12M 2024 2023 2024 2023 ∆ 12M April 2024. The core wine business Revenue 382.5 369.6
Slide 32: Continuous operational improvement performance
3 Continuous operational improvement performance Gross profit quarterly evolution, RON m Comments 60% ▪ Significant improvement in operational 80 51% activity. Gross profitability exceeding 50% mark in two out of four quarters in 2024. 46% 51% 50% 70 ▪ Group revenues grew YoY in all quarters of 45%
Slide 33: Resilient profitability when accounting for extraordinary/MIP costs
3 Resilient profitability when accounting for extraordinary/ MIP costs Changes to operational expenses, RON m Comments ▪ Net Profit RON 57.4 million, -7% YoY 8.8 Revenue ▪ Gross margin up 19%, reflecting operational (19.2) efficiency. Cost One-off ▪ Other Income including subsidies, volumes cost reb
Slide 34: Enabling growth with a strong balance sheet
3 Enabling growth with a strong balance sheet Cash Position Net Debt Strong Cash position on RON m RON m prudent cash management while navigating operational 50.8 186 and investment priorities. Cash and 32.1 128 Receivables 98 109 23.5 21.3 76 66 21.8 18.6 Net Debt reflecting higher 12.6 46 leverage
Slide 35: Strong performance across all markets
3 Strong performance across all markets Market Share of sales, 2024 ∆ ’24/’23 YoY Comments ▪ RO: Strong Q4, contributing 32% of 2024 sales. Purcari and Bardar led growth, up +17% and +29% RO 60% +15% YoY. Overall sales rose +15% YoY, driven by higher volumes and selective price increases. ▪ MD: Sust
Slide 36: Solid performance for all brands in a challenging market dynamics
3 Solid performance for all brands in a challenging market dynamics Brand Share of sales, 2024 ∆ ’24/’23 YoY Comments ▪ PURCARI: Surpassed 8 million bottles in yearly sales. Q4 contributed 33% of 2024 sales, with 58% +17% Moldova and Romania posting mid-double-digit YoY growth. All sub-brands perfor
Slide 37: Key commercial updates (1/2)
3 Key commercial updates (1/2) Events Marketing campaigns Medals Moldovan Wine Festival Mircea Lucescu – Purcari ambassador Best winery in Moldova Attended the fourth edition of the Announced our collaboration with the Awarded by Moldova’s National wine festival held in Bucharest head coach of Roman
Slide 38: Key commercial updates (2/2)
3 Key commercial updates (2/2) New product launch New markets Achievements and partnerships Israel – Nocturne Nigeria US tasting activity Launch of the Nocturne First orders and deliveries of 69 tastings, 8 states, 2 736 collection for HoReCa and online. Drevnii Monah and Nuit des participants, with
Slide 39: Becoming the undisputable Wine Champion in CEE
3 Becoming the undisputable Wine Champion in CEE Formula of becoming wine champion in CEE M&A focus map Purcari footprint and M&A directions ▪ Growth components both organic and Existing Newly added Directions for M&A opportunities through M&A. ▪ Focus on fundamentals: top- and bottom-line line grow
Slide 40: Expanding our presence in Dealu Mare
3 Expanding our presence in Dealu Mare Acquired areas in the Dealu Mare Region All located in or in close proximity to Crama Ceptura, Ceptura de Jos Village ▪ On August 22, 2024, Purcari Wineries Group reported the acquisition of vineyards, construction land and several pieces of agricultural equipm
Slide 41: Agenda
Agenda Cervus Magnus Monte Chardonnay 1 This dry wine has a pale golden color with bright Purcari Wineries Group greenish reflections. It delights with rich aromas of ripe yellow apples, white peaches, and subtle hints of perfectly ripened 2 grapes. The vibrant Strategy 2x by 200 freshness of orchar
Slide 42: Performance vs. 2024 guidance
4 Performance vs. 2024 guidance: delivering on margins; revenue slightly below target Target 2024 guidance 2024 actuals Status Comments ▪ Ecosmart line of business discontinued; declared insolvent as of January 28, 2025 (NB: Revenue growth +5-10% +3% < Ecosmart accounted for ~ 8% of Group revenues i
Slide 43: Guidance 2025
4 Guidance 2025 Target 2025 guidance Comments ▪ Expecting ongoing solid growth, with potential volatility from current geopolitical uncertainties. Revenue ▪ Planned portfolio expansion through innovation and premiumization, +12-17% enhancing premium offering growth ▪ Continuous focus on developing n
Slide 44: Agenda
Agenda Cuvée de Purcari Adamant Edition 1 The refined and intricate aroma reveals a balance of Purcari Wineries Group citrus notes like lemon and grapefruit, alongside gentle floral scents such as white flowers and 2 lemon blossoms. Subtle notes of green apples or Strategy 2x by 200 pears are presen
Slide 45: 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 Intercapital Buy 20.35 Jan-25 Goldring n/e 15.
Slide 46: WINE performance +59% since end-2022, outpacing BET
5 WINE performance +59% since end-2022 (as of Feb-17), Outpacing BET WINE (Purcari Wineries) SFG (Sphera Franchise Group) DIGI (Digi Communications) M (Med Life) AQ (Aquila Part) BET (index) 250 200 187 | SFG “Consumer” peers = relevant companies outside of financials, utility, and energy sectors, d
Slide 47: Purcari shares liquidity
5 Purcari shares liquidity Rapid rise of stock’s liquidity after starting working with Market Makers Relative to Market Cap, our stock is top- for Purcari shares ranked among BET components Daily volume Ratio of daily trade value to Market Capitalization, 2021- 2025 YTD average, bps BRK + Raiffeisen
Slide 48: EBITDA profitability relative to WINE listed peers
5 EBITDA profitability relative to WINE listed peers Purcari vs selected Wine public companies LTM EBITDA Margin, % 28.1% 26.7% 15.9% 15.3% 12.8% Average margin: 12.4% 9.3% 9.2% 6.1% 5.1% 5.1% 3.4% 1 Source: Capital IQ, Company Data as per Capital IQ as of Feb 17, 2025. Note: (1) Italian Wine Brands
Slide 49: Valuation relative to wine peers
5 Valuation relative to wine peers Purcari vs Selected wine public companies P/E LTM Multiples 117.9 58.4 Average P/E: 25.0x 21.0 15.7 15.0 12.5 12.0 11.8 10.3 10.1 8.3 7.8 1 Source: Capital IQ, Company Data as per Capital IQ as of Feb 17, 2025. Note: Diluted EPS excluding extra items used for P/E m
Slide 50: Valuation relative to Romanian listed peers
5 Valuation relative to Romanian listed peers Purcari vs selected Romanian public companies P/E LTM Multiples 143.4 Average P/E: 21.9x 18.2 14.5 13.1 11.3 10.1 Average P/E w/o Medlife: 9.8x 8.5 7.8 6.2 5.9 3.1 1 Source: Capital IQ, Company Data as per Capital IQ as of Feb 17, 2025. Note: Diluted EPS
Slide 51: 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’18-24 in USD Revenue CAGR’18-24 in USD 20 20 15 15 10 10 5 5 0 0 -5 -5 -10 -10 0 10 20 30 40 50 60 70 80 90 100 0 1 2 3 4 5 6 7 8 9 10
Slide 52: Agenda
Agenda Vinohora Fetească Neagră & Pinot Grigio 1 The rich taste reveals a lush, Purcari Wineries Group fruit-forward profile, enhanced by subtle notes of vanilla. The ripe sweetness of peach, the tartness of cherry, and the 2 freshness of raspberry Strategy 2x by 200 blend beautifully to enrich its
Slide 53: Continuing investing in both: growth and sustainability
6 Continuing investing in both: growth and sustainability Solar panels ▪ Existing 200 kW Solar System, installed on the roof of Purcari Winery, extended with additional 300 kW; current total capacity of 500 KW, supplying 40% of the winery’s electricity consumption. ▪ Photovoltaic Systems with a capa
Slide 54: Implementing irrigation systems to secure yield and quality
6 Implementing irrigation systems to secure yield and quality ▪ Pioneering in irrigation of technical grapes vineyards in Moldova. ▪ Deployed an irrigation system for 300ha of vineyards at Chateau Purcari. ▪ Opted for an intelligent, fully automated sub-surface drip irrigation system. ▪ Two storage
Slide 55: ESG and Impact
6 ESG and Impact Purcari Wineries is building up its foundation in sustainability and ESG management, by aligning its business and model to the UN Sustainable Development Goals (SDGs). ENVIRONMENT SOCIAL GOVERNANCE ▪ Launched an irrigation system at ▪ Launched Purcari Foundation in ▪ Expanded the bo
Slide 56: Investor Relations Contact
INVESTOR RELATIONS CONTACT: Eugeniu Baltag Investor Relations Director Phone: +373 60 449 213 Email: investor.relations@purcari.wine PURCARI WINERIES PUBLIC COMPANY LIMITED 8th Calea Iesilor St., 5th floor Chisinau, MD-2069 Republic of Moldova www.purcariwineries.com Page 56
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