Purcari unveils new strategy: 2X by 200 – aiming to double key operating metrics by company’s bicentenary in 2027

Purcari Wineries Public Company Limited (BVB ticker: WINE; henceforth “Group”, “Company”), the leading wine producer in Central and Eastern Europe, unveiled today its new mid-term strategy aimed at establishing itself as an emerging global winemaking champion, committed to preserving and promoting the winemaking heritage of New Europe countries.

Dubbed 2X by 200, the Group’s mid-term strategy aims to double on key operating metrics by its bicentenary in 2027. As part of it, the Group announced that it is targeting RON 200+ million in EBITDA and RON 600+ million in sales by 2027, circa double the corresponding 2023 values. 

The strategy focuses on three key pillars: Profitable growth, Wine-making excellence, and Commercial excellence, enabled by an upgrade of (digital) Tools and Processes, Talent and Culture. Key markets for growth include Romania, Moldova, Bulgaria, as well as export regions in broader CEE, as well as UK, US, and Asia. 

Purcari Wineries Group will accelerate its premiumization efforts, focusing on increasing the sales of high-end ranges like Purcari Nocturne or Limited editions brands, while expanding its footprint in new markets through targeted M&A activities. The Group will continue to promote indigenous grape varieties like Rară Neagră to create a hard-to-replicate competitive advantage through a unique portfolio and an enhanced reputation. Wine-making excellence remains at the core of Purcari Wineries Group’s operations, with plans to expand production capacity and plant new vineyards to secure the grape quantity and quality required for growth and premiumization. Additionally, the Group aims to optimize its marketing efforts to drive growth across its portfolio. 

By implementing the new strategy, the group targets to roughly double the key financial performance metrics: reach EBITDA of RON 200+ million, increase Net Profit from RON 64 million to RON 130 million, and increase dividends by 2.3x from RON 0.6 / share to RON 1.4.

Purcari Wineries Group is equally committed to driving sustainability across its operations. As part of its ESG strategy, the Group will continue to invest in reducing water and energy consumption, improving waste management, and expanding solar energy use, with a goal of sourcing up to 80% of its energy needs from clean sources. The company also aims to further develop sustainable viticulture practices, including expanding irrigation. The Group continues its strong focus on employee development and community engagement and adheres to the best practices in Governance. 

“We are excited to launch this ambitious strategy that is designed to position Purcari Wineries Group as an emerging global wine leader,” said Victor Bostan, CEO. “With a clear focus on premiumization, sustainability, and innovation, we are well positioned to meet our ambitious financial and operational targets by 2027, while preserving and promoting the rich wine-making traditions of New Europe.” 

The Group will seek to implement over 150 operational initiatives across all locations to ensure the timely achievement of its growth objectives. Progress will be measured through Objectives and Key Results (OKRs) defined for every area of the company, across all strategic pillars, ensuring that the company achieves its ambition and remains agile in navigating market changes. 

For further information, please see the attached materials or access the IR section of our corporate website.

About Purcari Wineries PCL

Purcari Wineries Public Company Limited (with its brands: Purcari, Crama Ceptura, Bostavan, Bardar, Domeniile Cuza and Angel’s Estate) is one of the largest wine and brandy groups in the Central and Eastern European (CEE) Region. The Group manages around 1,850 hectares of vineyards and operates seven production platforms in Romania, Moldova, and Bulgaria. Purcari Wineries is the leader in the Premium wine segment in Romania with a 30% segment share and the largest wine exporter from Moldova, delivering to over 40 countries. Founded in 1827, Chateau Purcari is the most awarded winery of the CEE Region at Decanter London 2015-2023, as well as among the best ranked wineries on Vivino, with an average score of 4.1 out of 5.0, based on approximately 100,000 reviews. Since February 2018, the Group is listed on the Bucharest Stock Exchange under the ticker WINE. Purcari Wineries is led by Victor Bostan, a veteran with more than 30 years of experience in the wine business and is endorsed by top institutional investors such as: Horizon Capital, Fiera Capital, Conseq, East Capital and Norges Bank.

Enquiries
investor.relations@purcari.wine

Disclaimer

This document may contain certain forward-looking statements which are based on estimations and forecasts. By their nature, these forward-looking statements are subject to important risks and uncertainties and factors beyond our control or ability to predict. These forward-looking statements should not be considered as a guarantee of future performance, the actual results could differ materially from those expressed or implied by them. The forward-looking statements only reflect the Group’s views as of the date of this document, and the Group does not undertake to revise or update these forward-looking statements. The forward-looking statements should be used with caution and circumspection and in no event can the Group and its management be held responsible for any investment or other decision based upon such statements. The information in this document does not constitute an offer to sell or an invitation to buy shares in the Group or an invitation or inducement to engage in any other investment activities.