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Purcari Wineries post revenue up by 20% for 9 months 2018

Purcari Wineries Plc wine producer has announced consolidated financial results for the nine months of 2018. Revenue was up 20%, compared to the same period last year, while adjusted EBITDA increased 26%.
We are satisfied about the results for the first nine months as we are focusing on the crucial fourth quarter of the year, which, given seasonality, accounts for about a third of our sales. We are also delighted about the very strong harvest this year, both in terms of quantity and quality, which positions us for an excellent 2019. In terms of innovations, we keep launching products that capture consumers’ imagination, like the latest Feteasca Alba sparkling, fermented in-bottle, a liquid gem for your holiday season celebrations!”, commented Victor Bostan, CEO of Purcari Wineries.

The wine producer announced the 9M18 year-on-year sales had been up by 32% in Romania, 13% in Moldova, 10% in Poland, 15% in Czechia and Slovakia and 39% in Asia, saying the 2018 harvest has been very strong, both in quantity and quality.
Own production up circa 19% year-on-year, while purchases of third-party grapes from partner-farmers up 74%, in preparation for a strong 2019. Cost base attractive, despite ongoing headwind of Moldovan currency appreciation.

We update our guidance for 2018 revenue growth to 18-22% year-on-year, based on delayed or lower than planned deliveries to Asia and Russia, despite very strong year on year growth in these markets, as well as a strategic review of our distribution setup for Moldova, which may result in certain shipments shifting to 2019. We maintain the EBITDA and Net Income margin guidance for the year at 34-37% and 24-27% respectively, on the back of ongoing gross margin improvements and overall cost controls. The guidance for 2019 will be shared following the formal approval of the 2019 budget,” a press release says.

Wineries Plc (Purcari, Crama Ceptura, Bostavan and Bardar brands) is one of the largest wine and brandy groups in the CEE region, managing around 1,000 hectares of vineyards and operating four production platforms in Romania and Moldova. Purcari is the largest wine exporter from Moldova, delivering to over 30 countries. Founded in 1827, Purcari is listed on the Bucharest Stock Exchange, under the ticker WINE, since February this year. Purcari is led by Victor Bostan, a 30+ years wine business veteran and backed by top institutional investors, including Horizon Capital, Franklin Templeton, SEB, Fiera Capital and IFC.

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