August 20 (SeeNews) - Bucharest-listed wine maker Purcari Wineries [BSE:WINE] said on Thursday that its net profit fell by an annual 9% to 15.6 million lei ($3.8 million/3.2 million euro) in the first six months of the year.
Revenues were down by an annual 3%, to 84.9 million lei, mainly due to weak performance in China and Moldova and lower revenues from tourist visits to its winery Chateau Purcari because of restrictive measures enforced to curb the spread of the coronavirus disease (COVID-19), Purcari Wineries said in a statement filed with the Bucharest Stock Exchange, BVB.
EBITDA contracted by an annual 6% to 28.3 million lei during January-July.
In contrast, the performance in the Romanian market, the group’s largest, was very strong, with revenues up 24% on the year.
Revenues in Moldova were down 49%, given the market’s strongest dependence on the horeca and duty free segments in the group. In Poland, revenues were up by 6% fueled by an improved product mix, medium price segment sales growth and new listings.
In Asia, Purcari's revenues down 70% as COVID-19 outbreak disrupted commercial activity for all major wine players in China, while in Czechia and Slovakia, revenues dropped by an annual 4% due to weaker results in the first quarter of 2020.
In Ukraine, revenues expanded by 51%, as the Purcari brand became increasingly popular with Ukrainian consumers.
The evironment has started showing signs of improvement, the company also said. July revenues returned to year-on-year growth at group level, while August orders sustained the trend.
Founded in 1827, Purcari Wineries Plc is one of the largest wine and brandy groups in the CEE region. The group manages over 1,400 hectares of vineyards and operates four production platforms in Romania and Moldova. Purcari 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.
In February 2018, the group listed on the Bucharest Stock Exchange and is now part of the blue-chip BET index. Its shares were trading 2.70% higher at 22.8 lei on Thursday on the BVB as at 1316 CET.
Earlier this month, Purcari and Western NIS Enterprise Fund reached an agreement to sell their stakes in Moldova-based Glass Container Company and Glass Container Prim to Vetropack Austria Holding.
(1 euro=4.8396 lei)