Purcari Wineries Public Co., Ltd. · BVB:WINE
Purcari Wineries Public — Q3 2024 Earnings Presentation
36 slides from Purcari Wineries Public's earnings presentation, Nov 15, 2024
Slide 1: Corporate presentation: 3rd quarter 2024 financial results
Purcari Wineries Group (PWG) Public Company Limited BVB: WINE Corporate presentation: 3 quarter 2024 rd Financial results November 15, 2024 Page 1 BVB: WINE
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 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 industry. ▪ Senior Partner at Horizon Capital, with focus on ▪ Built one
Slide 4: Our purpose
Stefan Format 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 4
Slide 5: Selected highlights for 9M 2024
Selected highlights for 9M 2024 ▪ Events: Purcari became the main sponsor of the prestigious Jazz in the Park festival in Cluj- Commercial Napoca and received the Best Winery award in Republic of Moldova updates ▪ New products and markets: Successfully launched new products in multiple markets (e.g.
Slide 6: Agenda
Agenda Sapiens Orange A bold wine combining tradition and innovation. With exotic fruit aromas 1 and honey, its complex 9M 2024 Non-financial updates palate offers hints of ripe peaches and pears, finishing with a light tannic and spicy aftertaste. Like humans 2 this wine is never simple, it 9M 2024
Slide 7: Key commercial updates (1/2)
1 Key commercial updates (1/2) Events Marketing campaigns Medals Purcari as main sponsor at Jazz in New collection of wines – Sapiens Best winery in Moldova the Park festival in Cluj Man-made, created by nature. Awarded by Moldova’s National Vine Participants enjoyed a glass of wine at 6 distinctive
Slide 8: Key commercial updates (2/2)
1 Key commercial updates (2/2) New product launch New markets Achievements and partnerships Moldova – Sapiens Northern Cyprus US tasting activity Strong offering across red, white and Almost full portfolio (i.e., Purcari, Bardar, 69 tastings, 8 states, 2.736 participants, orange wines – 6 SKUs in to
Slide 9: Investors relations agenda
1 Investors relations agenda Investor day 2024 Environment and governance New market maker & investor events 200+ participants Board of the year award by ENVISIA Held on October 4. Over 200 Honored for board excellence, hard Intercapital Securities participants at Purcari work, and visionary leaders
Slide 10: 2024 agricultural season: high-quality vintage, but smaller yield than previous years
1 2024 agricultural season: high-quality vintage, but smaller yield than previous years Modest 2024 harvest, with exceptional quality vintage Comments Own harvest and 3rd party purchases of grapes, million kg 2024 harvest – lower across both local and global markets: 38.0 ▪ Local markets: Grape prod
Slide 11: Agenda
Agenda Negru de Purcari A wine of a complex and intense bouquet, with notes of sweet fruits, coupled with 1 fine flavors of spices and 9M 2024 Non-financial updates saffron. A noble red, with a rich structure, delicate tannins and a long sensual aftertaste. 2 55% Cabernet Sauvignon 9M 2024 Financial
Slide 12: Steady growth across all geographies the group is present in
2 Steady growth across all geographies the group is present in Market Share of sales1, 9M 24 ∆ 9M 24 YoY Comments ▪ RO: Strong growth across key brands. Continued horizontal RO 59% +16% expansion, new listings and targeting campaigns towards distributors. ▪ MD: Acceleration of growth in IKA that off
Slide 13: Good performance for all group brands despite challenging market dynamics
2 Good performance for all group brands despite challenging market dynamics Brand Share of sales, 9M 24 ∆ 9M 24 YoY Comments ▪ PURCARI: Up 20% in 3Q 2024 YoY, growth across most markets; Ukraine down 10%. RO: +17% 9M YoY in volume, 56% +17% driven by Nocturne and Limited Editions listings. Upward t
Slide 14: Sustainable Revenue Growth Driven by Wine Sales, Despite Ecosmart Discontinuation
2 Sustainable Revenue Growth Driven by Wine Sales, Despite Ecosmart Discontinuation Comments Purcari Group ▪ Revenues grew by 4% during 9M 2024 despite Ecosmart's discontinuation, with a faster pace for RON mn 3Q24 3Q23 ∆ 3Q 9M24 9M23 ∆ 9M our core business 14% YoY. Discontinuation of Ecosmart as of
Slide 15: Strong balance sheet and prudent liquidity management
2 Strong balance sheet and prudent liquidity management Comments Cash Position Net Debt RON mn RON mn Cash is recovering after the dividend pay-out, along with acquisition of the Cash and assets in Dealu Mare and an increase in Receiva- 32.1 192 23.5 142 128 151 the share of receivables from export
Slide 16: Agenda
Agenda Black Doktor Dry Red A deep red wine with a ruby shade, harboring a harmonious and velvety 1 bouquet of mellow berries, 9M 2024 Non-financial updates blackcurrant and black plums. A wine with notes of maturation and soft tannins 2 52% Cabernet Sauvignon 9M 2024 Financial Results 31% Merlot 17
Slide 17: Update on 2024 guidance
3 Update on 2024 guidance < Below guidance = In line with guidance > Above guidance Target 2024 guidance 9M 2024 Status Comments Ecosmart line of business discontinued; deconso- lidation expected in November 2024 (NB: Ecosmart Revenue growth +5-10% +4% < accounted for ~ 8% of Group revenues in 2023
Slide 18: Agenda
Agenda Cuvée de Purcari Rosé Brut 2020 Sparkiling wine produced by classic method of 1 fermentation. An elegant 9M 2024 Non-financial updates blend, completed by a floral bouquet with a subtle flavour of blackcurrant. 60% Pinot Noir 2 40% Chardonnay 9M 2024 Financial Results Recommended serving temp
Slide 19: Our strategy in a nutshell: Reach RON 200+ mn EBITDA by 2027
4 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 20: Agenda
Agenda A divin that represents the essence of 1 Bardar’s history, a creation of emblematic 9M 2024 Non-financial updates taste, full-bodied, harmonious, with nuances of candied fruit, roasted nuts and chocolate. Aged in the finest oak barriques for at 2 least 25 years. 9M 2024 Financial Results 3 Gu
Slide 21: Purcari Wineries Group at a glance
5 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 22: Strong track record of growth year to year
5 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 23: Long history of growth, high profitability
5 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 24: Our business model: Affordable luxury
5 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 25: Topping competition at engagement and quality
5 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 26: Growth in Vivino usage – key for consumer engagement, ecommerce
5 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 26
Slide 27: Agenda
Agenda Deneb Syrah A silky dark red wine with noble purple shades and 1 spicy overtones with hints of black cherry and 9M 2024 Non-financial updates tobacco. 100% Syrah 2 Matured for 18 months in new French oak barrels 9M 2024 Financial Results at controlled temperature and relative humidity. 3 Guid
Slide 28: Purcari Wineries PCL (BVB:WINE)
6 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 +77% since the end of 2022, ahead of BET
6 Stock performance, WINE +77% since the end of 2022 (as of Nov-8), ahead of BET WINE (Purcari Wineries) DIGI (Digi Communications) BET (index) SFG (Sphera Franchise Group) M (Med Life) AQ (Aquila Part) 300 286 | SFG “Consumer” peers = relevant companies outside of financials, utility, and energy se
Slide 30: Purcari shares liquidity
6 Purcari shares liquidity Rapid rise of stock’s liquidity after starting working with Market Makers Relative to Market Cap, our stock is top-ranked among BET for Purcari shares 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
6 EBITDA profitability relative to WINE listed peers Purcari vs selected Wine public companies LTM EBITDA Margin, % 29.8% 26.7% 16.1% 13.2% Average margin: 12.3% 11.9% 9.2% 8.5% 6.1% 5.1% 5.1% 3.4% 1 Source: Capital IQ, Company Data as per Capital IQ as of Nov 8th, 2024. Note: (1) Italian Wine Brand
Slide 32: Valuation relative to wine peers
6 Valuation relative to wine peers Purcari vs Selected wine public companies P/E LTM Multiples 136.9 91.1 Average P/E: 29.2x 23.4 16.4 12.5 11.8 11.8 10.3 9.4 9.3 9.1 8.7 1 Source: Capital IQ, Company Data as per Capital IQ as of Nov 8th, 2024. Note: Diluted EPS excluding extra items used for P/E mu
Slide 33: Valuation relative to Romanian listed peers
6 Valuation relative to Romanian listed peers Purcari vs selected Romanian public companies P/E LTM Multiples 16.3 16.2 11.7 11.6 Average P/E: 10.0x 9.4 8.8 8.4 7.9 7.0 6.6 5.9 1 Source: Capital IQ, Company Data as per Capital IQ as of Nov 8th, 2024. Note: Diluted EPS excluding extra items used for
Slide 34: High growth not reflected in valuation yet
6 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 1 2 3 4 5 6 7 8 9 1
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 — Q3 2024 Earnings Presentation on 6ix