Purcari Wineries Public Co., Ltd. · BVB:WINE
Purcari Wineries Public — H1 2024 Earnings Presentation
33 slides from Purcari Wineries Public's earnings presentation, Aug 22, 2024
Slide 1: Purcari Wineries Corporate presentation: First Half 2024 financial results
Purcari Wineries Public Company Limited BVB: WINE Corporate presentation First Half 2024 financial results August 22, 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 years ▪ Founder of the Group, since 2002. of experience in investments in Consumer Goods ▪ Over 35 years of experience in the wine indus
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. 1H 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 1H 2024, % MD In the Top 3 most awarded wineries in the World for 2023. The
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 17.5 4.2 4.1 4.0 3
Slide 11: 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 11
Slide 12: 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 1H 2024 Operational Results blossoms and vanilla. C
Slide 13: Key operational highlights for 1H 2024
2 Key operational highlights for 1H 2024 ▪ Group revenues up 3% to RON 165.9 million YoY. Good traction for core wine and brandy sales +12% 1H YoY. Ecosmart’s operations discontinued, YoY comparison not directly relevant. Ongoing revenue ▪ Premium brands performing best, with Purcari leading the gro
Slide 14: P&L: Good Dynamics in WINE; Recycling Business Discontinued
2 P&L: Good Dynamics in WINE; Recycling Business Discontinued Purcari Group Purcari Group Comments RON m 2Q24 2Q23 ∆ 2Q 1H24 1H23 ∆ 1H ▪ Revenue up +3% to RON 165.9m, driven by a 12% Revenue 84.3 88.1 -4% 165.9 161.4 3% YoY increase in core WINE business. Recycling Cost of Sales -41.3 -53.9 -23% -87
Slide 15: Segment reporting: Ecosmart updates
2 Segment reporting: Ecosmart updates Purcari Group WINE Business Note: On May 30, 2024, Ecosmart Union SA's shareholders decided to RON m 1H24 1H23 ∆ 1H 1H24 1H23 ∆ 1H discontinue operations following the Revenue 165.9 161.4 3% 164.5 147.0 12% April 16, 2024, High Court ruling in the Cost of Sales
Slide 16: 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 151 32.1 32.1 128 Receivables 98 109 21.8 23.5 18.6 76 66 12.6 46 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Jun-24 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Jun-24 Current Ratio Cash Ratio 2.71x
Slide 17: Steady growth in a volatile "Wineconomics" landscape
2 Steady growth in a volatile “Wineconomics” landscape Market Share of sales, 1H24 ∆ 1H24 YoY Comments ▪ RO: +16% YoY Growth in 2Q’24, accelerated by strong performance in RO 59% +15% Purcari and Bardar. Crama Ceptura maintained its robust momentum with mid-double-digit growth. Domeniile Cuza double
Slide 18: Good brand performance, amid challenging market dynamics
2 Good brand performance, amid challenging market dynamics Brand Share of sales, 1H24 ∆ 1H24 YoY Comments ▪ PURCARI: Strong growth continues, driven by higher volumes, new listings and geographical expansion. 55% +16% Premiumization strategy continues to yield good results. Capitalizing on brand pow
Slide 19: Investor Day 2024: Uncorking Future Growth at Purcari
2 Investor Day 2024: Uncorking Future Growth at Purcari Agenda ▪ Meet the Team: Get to know the People Behind Our Success, including newly appointed executives ▪ Vision 2030: Pouring Tomorrow’s Strategy Today ▪ Behind the Label: Guided Tour of Our State-of-the-Art Production Facilities ▪ The Heart o
Slide 20: Outstanding results at most reputable wine competitions
2 Outstanding results at most reputable wine competitions Château 2024 Decanter World Wine In the Top 5 most successful wineries Top 3 Most Awarded Wineries in 2024 Awards in 2024 at Mundus Vini in the World 61 medals and awards collected in 2024 Grand Gold and Best of show Moldova “Most Successful
Slide 21: Continue supporting, engaging, inspiring…
2 Continue supporting, engaging, inspiring… The Olympic Games of Paris 2024 Purcari Wineries Group Toasts to Seminar on Agro-food Product Main sponsor of the National Sports Success in the Austrian Alps Standardization and Import in China Committee of the Republic of Moldova, From April 8th to 10th,
Slide 22: 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 1H 2024 Operational Results 52% Cabernet Sauvignon 31% Merlot 17% Sap
Slide 23: Guidance 2024 update
3 Guidance 2024 update 2024 guidance 2024 guidance Target 2024 guidance Comments update 1Q update 1H ▪ Ecosmart line of business discontinued; deconsolidation expected in November 2024 Revenue +16-20% +12-15% +5-10% (NB: Ecosmart accounted for circa 8% of growth Group revenues in 2023 but only 4% of
Slide 24: 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 1H 2024 Operational Results Matured for 18 months in new French oak barrels at controlled temperature and relative humidity. 3 Guidance
Slide 25: Purcari Wineries PCL (BVB:WINE)
4 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 26: Stock performance, WINE +81% since the end of 2022, well ahead of BET
Stock performance, WINE +81% since the end of 2022 4 (as of Aug-16), well ahead of BET WINE (Purcari Wineries) BET (Index) M (Med Life S.A.) SFG (Sphera Franchise Group) DIGI (Digital Communications N.V.) AQ (Aquila Part) 283 | SFG 260 “Consumer” peers = relevant companies outside of financials, 243
Slide 27: Purcari shares liquidity
4 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 28: EBITDA profitability relative to WINE listed peers
4 EBITDA profitability relative to WINE listed peers Purcari vs selected Wine public companies LTM EBITDA Margin, % 25.1% 15.7% 15.0% 13.2% 12.1% Average margin: 10.3% 8.8% 8.6% 6.4% 6.0% 5.1% 3.6% 3.5% 1 Source: Capital IQ, Company Data as per Capital IQ as of Aug 16th, 2024. (1) Italian Wine Brand
Slide 29: Valuation relative to wine peers
4 Valuation relative to wine peers Purcari vs Selected wine public companies P/E LTM Multiples 97.5 47.0 Average P/E: 22.3x 20.9 14.2 13.3 13.0 12.3 11.1 11.0 10.5 9.0 8.3 Source: Net Income and Market Cap as per Capital IQ as of Aug 16th, 2024. Note: Diluted EPS excluding extra items used for P/E m
Slide 30: Valuation relative to Romanian listed peers
4 Valuation relative to Romanian listed peers Purcari vs selected Romanian public companies P/E LTM Multiples 17.8 15.0 12.7 11.2 10.5 Average P/E: 10.6x 9.3 8.2 8.1 7.6 5.6 1 Source: Capital IQ, Company Data as per Capital IQ as of Aug 16th, 2024. Note: Diluted EPS excluding extra items used for P/
Slide 31: High growth not reflected in valuation yet
4 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 10 20 30 40 50 60 70 80 90 100 0 5 10 15 20 25 P/E M
Slide 32: 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 33: Thank you for your attention!
Thank you for your attention! Page 33
Purcari Wineries Public Company — H1 2024 Earnings Presentation on 6ix