Winemaker Purcari posts 3% sales decline in first half

Purcari Wineries, a leading wine producer in Central and Easter Europe (CEE), recorded a 3% decline in revenues in the first half of this year, compared to the same period of 2019, to RON 84.9 mln (EUR 17.6 mln).

The EBITDA and net profit contracted by 6% and 9% respectively, to RON 28.3 million (EUR 5.9 mln) and RON 15.6 million (EUR 3.25 mln).

The revenue decline was driven mainly the weak performance in China and Moldova, the latter heavily reliant on the HORECA and Duty Free segments, as well as the tourism sales at Chateau Purcari, which were all severely affected by the lockdowns.

In contrast, the performance in Romania, the group’s largest market, was very strong, with revenues up 24%, the company said in a report to shareholders. The group also delivered a solid performance in the other core CEE markets, including the Baltics, Czechia, Poland, Slovakia and Ukraine.

The demand environment started showing signs of improvement with July revenues returning to year-on-year growth at group level, while August orders sustain the trend.

(Photo source: the company)