Purcari Wineries Public Co., Ltd. · BVB:WINE
Purcari Wineries Public — Purcari Wineries — Q1 2021 Earnings Presentation
24 slides from Purcari Wineries Public's earnings presentation, May 18, 2021
Slide 1: Purcari Wineries Plc 1Q 2021 Results Presentation
Purcari Wineries Plc 1Q 2021 Results Presentation 18 May 2021 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: Today's presenters
Today’s presenters Victor Bostan Eugen Comendant Victor Arapan Vasile Tofan CEO, Founder COO CFO Chairman Founded the Group in 2002 Over 10 years of 20 years of experience in Over 10 years experience in Over 35 years of experience management experience banking, audit, corporate FMCG in win
Slide 4: Agenda
AGENDA Viorica de Purcari caters to the 1 Our Group, Vision and Strategy increasing interest in indigenous 2 1Q 2021 Operational Results aromatic grapes. BEST IN SHOW at Decanter 2020, 97 pts. 3 2021 Outlook 4 Q&A Page 4
Slide 5: 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 Geographical breakdown of sales in value terms, 1Q21, % Founded in 1827 by French colonists, Purcari group is now... RO MD PL CZ+SK CN Other Most awarded CEE winer
Slide 6: Our Group: competitive advantage in an attractive market
1 Our Group: competitive advantage in an attractive market Secular shift from Attractive beer, spirits to Competitive #1 premium wine market wine, especially in advantage brand in Romania CEE Plenty to catch Wine growth ’16- #1 most awarded up: wine #1 fastest growing ’20F in Romania CEE winery at c
Slide 7: 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 brand, as opposed to appellation- centric and runs a cost-efficient business Affordable luxury: as an aspirational brand, Purca
Slide 8: Our mission, vision and values
1 Our mission, vision and values Our mission Our values To bring joy in people’s lives, by Hungry offering them high quality, inspiring, We win in the marketplace because we want it more ethical wines and excellent value for Ethical money. Always do the right thing and the money will follow Thrifty
Slide 9: 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 77 82 74 #3 67 63 68 #2 41 39* 36 18 #1 10 Beer Spirits Wine Beer Spirits Wine Beer Spirits Wine Beer Spirits Wine Unlike beer or spirits, wine market remains very fragmented; players who have the scale
Slide 10: Quality highly commended, remain the most awarded winery in CEE
1 Quality highly commended, remain the most awarded winery in CEE Leading medal-winning winery in CEE at Decanter, Increasing number of medals won from year to year the Wine ”Olympics” # of Decanter medals in 2015 20 # of medals #1 73 Mundus Vini 74 Concours Mondial de Bruxelles 62 Challenge Inter
Slide 11: 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 Number of #brand uses on Instagram, thousand, by key Romanian brands X axis – number of Vivino ratings; Y axis – average Vivino score 12.1 4.2
Slide 12: 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 13 out of TOP-25 positions #1 • 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
Slide 13: Turned crisis into an opportunity, boosting market share in Romania
2 Turned crisis into an opportunity, boosting market share in Romania Jumped to #4 in overall market, reaching 10%+ share… …while distancing by 20+ percentage points vs #2 in premium Value share of TOTAL retail market, Romania, % Value share of Premium (RON 30+/liter) retail market, Romania, % 18 Pu
Slide 14: Growth in Vivino usage, key for consumer engagement
1 Growth in Vivino usage, key for consumer engagement 4.24 84% Top 1% Average score out of Scores equal or Global ranking based 5.0 in 1Q21 above 4.0 on avg. score received 25,256 +30% 61 Vivino scans in March 2021 YoY # of countries where 1Q21 scans growth Purcari has been scanned Page 14
Slide 15: Agenda
AGENDA Negru de Purcari 2015, GOLD at 1 Our Group, Vision and Strategy Decanter 2020, 95 pts., 4.4 score on Vivino, top 1% 2 1Q 2021 Operational Results wine globally 3 2021 Outlook 4 Q&A Page 15
Slide 16: Strong growth, despite many pandemic restrictions still in place
2 Strong growth, despite many pandemic restrictions still in place Revenues EBITDA Net Income RON m RON m RON m +8% +13% +28% 49.8 19.6 10.3 46.4 17.4 8.0 1Q20 1Q21 1Q20 1Q21 1Q20 1Q21 Growth vs. 1Q19, +18% 37% 39% 17% 21% EBITDA margin Net Income margin Page 16
Slide 17: Key operational highlights for 1Q21
2 Key operational highlights for 1Q21 • Revenues up 8% vs. a largely still strong pre-pandemic 1Q20; growth vs. 1Q19 at +18% Ongoing strong • Strong performance in Romania, with Purcari leading the growth performance in • Moldova and China having the best quarter since pre-Covid era in 2020 Romania
Slide 18: P&L: solid performance and margins in a restrictive environment
2 P&L: solid performance and margins in a restrictive environment Comments RON m 1Q20 1Q21 ∆ '21/'20 1Q21 continues the growth momentum set in 4Q20, with Revenue 46.4 49.8 8% sales up 8% (and +18% vs. 1Q19). Cost of sales increasing at a slower pace than revenue at 5% YoY. Cost of Sales (22.8) (23
Slide 19: Romania leading the growth; Moldova and China on recovery path
2 Romania leading the growth; Moldova and China on recovery path Market Share of sales, 1Q21 Growth, 1Q21 YoY Comments RO 53% +19% • RO: strong growth in 1Q21 +19% yoy. Purcari was leading the growth by 29% yoy. Bardar doubled sales YoY, albeit from smaller base. IKA sales continued growth, Retail g
Slide 20: Premium Purcari and Crama Ceptura brands lead the growth
2 Premium Purcari and Crama Ceptura brands lead the growth Brand Share of sales, 1Q21 Growth, 1Q YoY Comments • PURCARI: Ongoing strong traction in Romania. Moldova at +20% yoy, matching the 1Q19 level, the first growing quarter since 2020. Doubled sales in Ukraine, promising performance 48% +29% in
Slide 21: Agenda
AGENDA Platinum at Decanter 1 Our Group, Vision and Strategy 2020, 97 pts., 4.4 score on Vivino, top 1% wine globally 2 1Q 2021 Operational Results 3 2021 Outlook 4 Q&A Page 21
Slide 22: Guidance 2021 – maintaining our guidance for the year
3 Guidance 2021 – maintaining our guidance for the year Target 2021 guidance Status 1Q21 Comments • Romania to remain biggest growth driver, continue focusing Organic on Poland, Czechia, Slovakia, Ukraine. Significant recovery revenue +12-14% expected in Moldova and Asia most affected by pandemic
Slide 23: Boost in liquidity for Purcari stock, on effects of MM services
3 Boost in liquidity for Purcari stock, on effects of MM services Rapid rose of stock’s liquidity after BRK Financial Group Relative to Market Cap, Purcari liquidity among strongest became Market Maker for Purcari shares in BET Daily volume Ratio of daily trade value to Market Capitalisation, 2021 Y
Slide 24: Thank you.
Thank you. Page 24