Purcari Wineries Public Co., Ltd. · BVB:WINE
Purcari Wineries Public — Purcari Wineries — Q1 2022 Earnings Presentation
28 slides from Purcari Wineries Public's earnings presentation, May 17, 2022
Slide 1: Purcari Wineries First Quarter 2022 Financial Results
Purcari Wineries First Quarter 2022 Financial Results 17 May 2022
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 Eugeniu Baltag Vasile Tofan Chief Executive Officer, Chief Operational Officer Chief Financial Officer Investor Relations Manager Chairman of the Board Founder ▪ Founded the Group in ▪ Over 15 years of ▪ 20 years of experience in ▪ Over
Slide 4: Today's agenda
Today’s agenda Freedom Blend A courageous blend of 1 Our Group, Vision and Strategy indigenous grapes from Moldova, Ukraine and Georgia, launched back in 2014 and today it is more 2 1Q 2022 Operational Results actual than ever. 3 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 Founded in 1827 by French colonists, Purcari group is now... Geographical breakdown of sales in value terms, 1st Quarter, 2022, % RO MD PL UA CN #1 World’s most aw
Slide 6: Strong track record of growth
1 Strong track record of growth Sustainable profitability accompanying strong growth Comments 2017 2018 2019 2020 2021 ▪ IPOed on Bucharest Stock Exchange Revenue 142.3 168.1 199.1 203.7 248.1 in February 2018. CoS (74.5) (85.5) (100.2) (105.9) (132.3) ▪ 75% increase in revenues since IPO. Gross pro
Slide 7: 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 8: 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, Pur
Slide 9: 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 10: 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 • Philosophy: be genuine, talk to the consumer, Romania, Moldova, very competitive vs. other don’t sell to them EU, New world • On a shoestring: focus o
Slide 11: 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 12: 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” In 2021 the most awarded winery in the World # of Decanter medals in 2015 − 2022 # of medals #1 103 Mundus Vini 97
Slide 13: 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 13.5 4.2
Slide 14: 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 15: Steady increase in market share in Romania, our core market
2 Steady increase in market share in Romania, our core market Jumped to #4 in overall market, reaching 10%+ share… …while distancing by 15+ percentage points vs #2 in premium Value share of TOTAL retail market, Romania, % Value share of Premium (RON 30+/liter) retail market, Romania, % Cotnari Jidve
Slide 16: Growth in Vivino usage, key for consumer engagement
1 Growth in Vivino usage, key for consumer engagement, ecommerce 4.24 81% Top 1% Average score out of Scores equal or Global ranking based 5.0 in 1Q22 above 4.0 on avg. score received 30,201 +20% 96 Vivino scans in 1Q YoY scans growth # of countries where 1Q22 Purcari has been scanned Page 16
Slide 17: Today's agenda
Today’s agenda Negru de Purcari 2015 GOLD at Decanter 1 Our Group, Vision and Strategy 2020 with 95 pts and a 4.4 score on Vivino, ranked among the top 1% wines globally. 2 1Q 2022 Operational Results 3 Q&A Page 17
Slide 18: Solid 1Q22 growth with profitability on top of the guidance
2 Solid 1Q22 growth with profitability on top of the guidance Revenues EBITDA Net Income RON m RON m RON m +13% +4% 56.2 49.8 20.5 +17% 19.6 46.4 12.0 17.4 10.3 8.0 1Q20 1Q21 1Q22 1Q20 1Q21 1Q22 1Q20 1Q21 1Q22 Growth vs. 1Q20, +21% 37% 39% 36% 17% 21% 21% EBITDA margin Net Income margin Page 18
Slide 19: Key operational highlights for 1Q22
2 Key operational highlights for 1Q22 • Revenues up 13% on better mix and select price increases applied. • Strong performance for high premium brands Purcari and Bardar. Solid growth, • Moldova showing strong evolution, brands performing well across all channels. China showing a 20% despite difficu
Slide 20: Maintain strong margins, despite inflationary backdrop
2 Maintain strong margins, despite inflationary backdrop RON m 1Q22 1Q21 ∆ '22/'21 Comments Revenue 56.2 49.8 13% ▪ Gross profit margin at 52%, the highest level since IPO with Revenue and Cost of sales in 1Q22 growing at the Cost of Sales (26.9) (23.8) 13% same pace. Positive impact on better mix a
Slide 21: Strong balance sheet, providing a solid footing for current macro
2 Strong balance sheet, providing a solid footing for current macro Cash Position Net Debt RON m RON m 50.8 98 Cash and 76 77 32.1 66 Receivables 24.5 21.8 46 12.6 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 31-Mar-22 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 31-Mar-22 Current Ratio Cash Ratio 2.08x 0.48x
Slide 22: Strong traction in markets with higher premium mix
2 Strong traction in markets with higher premium mix Market Share of sales, 1Q22 ∆ 1Q22 YoY Comments RO 55% +7% • RO: Double digit growth for Purcari, strong traction for Nocturne series in HoReCa. Bardar doubled sales YoY on increased demand from Key accounts, albeit from smaller base. Efforts on h
Slide 23: Premium Purcari and Bardar brands lead the growth, helping mix
2 Premium Purcari and Bardar brands lead the growth, helping mix Brand Share of sales, 1Q22 ∆ 1Q22 YoY Comments • PURCARI: +28% growth in Moldova, followed by double digit growth in Romania. Threefold increase in Poland and +88% 52% +12% increase in Asia and CZ&SK, albeit from a smaller base, compen
Slide 24: Academia – our most ambitious oeno-project so far
2 Academia – our most ambitious oeno-project so far “A story about terroir, patience, harmony and experience…” 4632 bottles 6000 bottles 3250 bottles 6123 bottles A range of experimental wines, signed by our oenologist, Federico Giotto. Only indigenous grapes, minimally invasive vinification methods
Slide 25: Outstanding results at most reputable wine competitions in 2021
3 Outstanding results at most reputable wine competitions in 2021 Page 25
Slide 26: We continue our humanitarian efforts, helping Ukrainian refugees
2 We continue our humanitarian efforts, helping Ukrainian refugees Samantha Power, the 19th Administrator of the USAID on The Purcari Help Center opened on visit to Chateau Purcari 24th of February, 11 600 refugees aided, 108 volunteers 27/7 1971 refugees transported First refugees to a safer place
Slide 27: Today's agenda
Today’s agenda Malbec de Purcari Gold at both Challenge 1 Our Group, Vision and Strategy International du Vin and Mundus Vini Germany Spring Tasting – 2022 Edition, 2 1Q 2022 Operational Results 4.3 score on Vivino 3 Q&A Page 27
Slide 28: Thank you.
Thank you.