Half Year 2026 Purcari Wineries PCL Earnings Call
Speaker #1: This meeting is being recorded.
Speaker #2: Good afternoon, everyone, and thank you for joining the PURCARI WINERIES PUBLIC COMPANY results call for the first half of 2026. I'm Eugenio Baltag, the Head of IR at PURCARI, and today with me are Mr. Anatoly Belibov, the CFO of the Group, and Victoria Moldovan, the Senior IR of the Group.
Eugen Baltag: Good afternoon, everyone, and thank you for joining Purcari Wine Group Results for the H1 2026 results. I am Eugeniu Baltag, the Head of IR at Purcari, and today with me is Mr. Anatol Belibov, the CFO of the group, and Victoria Moldovan, the Senior IR of the group. We will start with a brief overview of the key highlights of the period. Then we will walk you through the financials, main operational developments across our markets. We will close with our guidance update for 2026. After that, we will open the line for the Q&A. Before we continue, please note that this conference may include forward-looking statements that involve risks and uncertainties. The financial figures presented are unaudited and should be reviewed together with the full reporting package available on our website or on the Bucharest Stock Exchange website as well.
Eugeniu Baltag: Good afternoon, everyone, and thank you for joining Purcari Wine Group Results for the H1 2026 results. I am Eugeniu Baltag, the Head of IR at Purcari, and today with me is Mr. Anatol Belibov, the CFO of the group, and Victoria Moldovan, the Senior IR of the group. We will start with a brief overview of the key highlights of the period. Then we will walk you through the financials, main operational developments across our markets.
Speaker #2: We will start with a brief overview of the key highlights of the period, then we will walk you through the financials and main operational developments across our market.
Speaker #2: And we will close with our guidance update for 2026. After that, we will open the line for Q&A. Before we continue, please note that this conference may include forward-looking statements, but it involves frequent uncertainties.
Eugeniu Baltag: We will close with our guidance update for 2026. After that, we will open the line for the Q&A. Before we continue, please note that this conference may include forward-looking statements that involve risks and uncertainties. The financial figures presented are unaudited and should be reviewed together with the full reporting package available on our website or on the Bucharest Stock Exchange website as well.
Speaker #2: The financial figures presented are unaudited and should be reviewed together with the full reporting package available on our website, or on the Bucharest Stock Exchange website as well.
Speaker #2: So, of course, this half was a very interesting one. First of all, I have to mention that our group managed to finalize two M&A deals, both of them in Romania, and we have issued previous current reports on that.
Eugen Baltag: This half was a very interesting one. First of all, I have to mention that our group managed to finalize two M&A deals. Both of them are in Romania. We have issued previously current reports on that. First of all is SERVE Ceptura acquisition in Romania, and the second one is the CaraprodVin. The first acquisition is in Dealu Mare region, very famous for red wines, and the second one is in Vrancea, which is the largest wine-growing region in Romania. Actually, we expanded our footprint in Romania by almost 100 hectares. Of course, we continue our biodiversity projects. We are monitoring. For us, it is very important that the vineyards we have, so we have more than 2,000 hectares developed in a sustainable way and they will have a useful life more than 50 years.
Eugeniu Baltag: This half was a very interesting one. First of all, I have to mention that our group managed to finalize two M&A deals. Both of them are in Romania. We have issued previously current reports on that. First of all is SERVE Ceptura acquisition in Romania, and the second one is the CaraprodVin. The first acquisition is in Dealu Mare region, very famous for red wines, and the second one is in Vrancea, which is the largest wine-growing region in Romania. Actually, we expanded our footprint in Romania by almost 100 hectares. Of course, we continue our biodiversity projects. We are monitoring. For us, it is very important that the vineyards we have, so we have more than 2,000 hectares developed in a sustainable way and they will have a useful life more than 50 years.
Speaker #2: So, first of all, is the Serve Ceptura acquisition in Romania, and the second one is the Carafort win. So, the first acquisition is in the Dealu Mare region, very famous for red wines, and the second one is in Vrancea, which is the largest wine-growing region in Romania.
Speaker #2: So, actually, we expanded our footprint in Romania by almost 100 hectares. Of course, we continue our biodiversity projects. We are monitoring—for us, it's very important that the vineyards we have—so we have more than 2,000 hectares—are developed in a sustainable way.
Speaker #2: And they will have a useful life more than 50 years. Our commercial team has been very active in this period. We just put here on slide two of the facts.
Eugen Baltag: Our commercial team has been very active in this period. We just put here on slide 2 of the facts. They have visited the ProWine in Tokyo and of course they have been in China. Nevertheless, Asia is a difficult market right now, but we are investing for the future. The one good news for all consumers of our wine, we have launched a new wine at Purcari. It is called Parcela. Actually, it is related to separate parcels where we grow wine, grow grapes, and do a specific wine. I think soon you are going to see the respective Parcela wine on the shelf of a store or in specialized wine bars. With that being said, I am passing the floor to Anatol because he has this heavy duty to explain the financial figures.
Eugeniu Baltag: Our commercial team has been very active in this period. We just put here on slide 2 of the facts. They have visited the ProWine in Tokyo and of course they have been in China. Nevertheless, Asia is a difficult market right now, but we are investing for the future. The one good news for all consumers of our wine, we have launched a new wine at Purcari. It is called Parcela. Actually, it is related to separate parcels where we grow wine, grow grapes, and do a specific wine. I think soon you are going to see the respective Parcela wine on the shelf of a store or in specialized wine bars. With that being said, I am passing the floor to Anatol because he has this heavy duty to explain the financial figures.
Speaker #2: So, they have visited the province in Tokyo, and of course they have been in China. Nevertheless, Asia is a difficult market right now, but we are investing for the future.
Speaker #2: And one good piece of news for all consumers of our wine: we have launched a new wine at Purcari. It's called Parcela. It's actually related to a separate parcel where we grow grapes and produce a specific wine.
Speaker #2: I think soon you're going to see the respective Parcela wine on the shelves of the stores or in specialized wine bars. With that being said, I'm passing the floor to Anatol because he has this heavy duty to explain the financial figures.
Speaker #3: Thank you, Eugenio. So, during the starting analyst—good afternoon, and thank you for joining our call today. I’m pleased to present and go through the financials of the PURCARI Group.
Anatol Belibov: Thank you, Eugen. So dear investors and analysts, good afternoon and thank you for joining our today call. I am pleased to present and to go through the financials of the Purcari Group, both operational and commercial part. For sure, we can say that H1 financial result of the Purcari have been impacted by two different contrasting trends. First of all, commercially, with revenue significantly affected by the consumer demand trend in Romania, but also in some countries in Central Europe. In the meantime, together with change in the ownership, we are planning to align with new shareholders, find some synergy, and that's all we have some new change and new distribution arrangement route to market that also, let's say, have impact in our commercial performance.
Anatol Belibov: Thank you, Eugeniu. So dear investors and analysts, good afternoon and thank you for joining our today call. I am pleased to present and to go through the financials of the Purcari Group, both operational and commercial part. For sure, we can say that H1 financial result of the Purcari have been impacted by two different contrasting trends. First of all, commercially, with revenue significantly affected by the consumer demand trend in Romania, but also in some countries in Central Europe. In the meantime, together with change in the ownership, we are planning to align with new shareholders, find some synergy, and that's all we have some new change and new distribution arrangement route to market that also, let's say, have impact in our commercial performance.
Speaker #3: Yeah, both operational and commercial parts, yeah, for sure. We can say that the H1 financial result of PURCARI has been impacted by two different contrasting trends.
Speaker #3: Yes, first of all, commercially, our revenue was significantly affected by consumer demand trends in Romania, but also in some countries in Central Europe.
Speaker #3: And in the meantime, together with changing the ownership, we are trying to align with the new shareholder, find some synergy, and that's all.
Speaker #3: We have some new changes and new distribution arrangement routes to market. Yeah, that also, let's say, has an impact on our commercial performance. At the same time, considering this trend in the consumer and also commercial performance, we are very disciplined in terms of cost, operational efficiency, and we try to manage each spend in Romanian lei by each type of spend.
Anatol Belibov: At the same time, considering this trend in the, let's say, consumer and also commercial performance, we are very disciplined in terms of cost, operational efficiency, and we try to manage each spend prominently by each type of spend. That is why you can see that, for sure, despite of reduction in turnover, we managed to deliver higher EBITDA versus same period of previous year. In this slide, you can see that our total turnover decreased by 6.8% to 182 million RON. Our gross margin decreased by 5 million. Nevertheless, it is very important, once again, to mention that percentage-wise, we managed to improve from 44.6% to 45.3%. Here, is despite of very, let's say, problematic period of time when it is not easy to change the price on the shelf in order to manage the inflation pressure. EBITDA margin improved to one of the highest level, 28.5%.
Anatol Belibov: At the same time, considering this trend in the, let's say, consumer and also commercial performance, we are very disciplined in terms of cost, operational efficiency, and we try to manage each spend prominently by each type of spend. That is why you can see that, for sure, despite of reduction in turnover, we managed to deliver higher EBITDA versus same period of previous year. In this slide, you can see that our total turnover decreased by 6.8% to 182 million RON. Our gross margin decreased by 5 million. Nevertheless, it is very important, once again, to mention that percentage-wise, we managed to improve from 44.6% to 45.3%. Here, is despite of very, let's say, problematic period of time when it is not easy to change the price on the shelf in order to manage the inflation pressure. EBITDA margin improved to one of the highest level, 28.5%.
Speaker #3: That's why you can see that, for sure, despite the reduction in turnover, we managed to deliver higher EBITDA versus the same period of the previous year.
Speaker #3: So, in this slide, you can see that our total turnover decreased by 6.8% to 182 million RON. Yeah, and also our gross margin decreased by 5 million.
Speaker #3: Nevertheless, it's very important to once again mention that, percentage-wise, we managed to improve from 44.6% to 45.3%. And here, this is despite a very, let's say, problematic period of time when it's not easy to change the price on the shelf in order to manage the inflation pressure.
Speaker #3: Yeah, EBITDA margin improved to one of the highest levels, 28.5%, and for sure it's important to go to the next slide and explain how we achieved this one.
Anatol Belibov: For sure, it is important to go in next slide and explain how we achieve this one. Profit-wise, we deliver this H1 15.1 million RON, mostly flat versus prior year. But once again, like percentage, it is 3 basic point, 30 basic point better than previous period of time. I propose to start with the commercial part. Eugen. Once again, we already mentioned that in Romania, we have, let's say, big pressure on household budget and available income. That is why people start to consume less. For sure, Purcari being a premium wine, have impact in the sold volume. So Romania registered a decline of 9%. This remain our biggest market have impact on group commercial performance. Moldova, which is, let's say, more stable in terms of consumer change. Still, we deliver approximately 1% increase, significantly above the, let's say, historical trend for Moldova market.
Anatol Belibov: For sure, it is important to go in next slide and explain how we achieve this one. Profit-wise, we deliver this H1 15.1 million RON, mostly flat versus prior year. But once again, like percentage, it is 3 basic point, 30 basic point better than previous period of time. I propose to start with the commercial part. Eugen. Once again, we already mentioned that in Romania, we have, let's say, big pressure on household budget and available income. That is why people start to consume less. For sure, Purcari being a premium wine, have impact in the sold volume. So Romania registered a decline of 9%. This remain our biggest market have impact on group commercial performance. Moldova, which is, let's say, more stable in terms of consumer change. Still, we deliver approximately 1% increase, significantly above the, let's say, historical trend for Moldova market.
Speaker #3: Profit-wise, yeah, we delivered this half year 15.1 million RON. Mostly flat versus prior year, but once again, like percentage, it's 3 basis points, 30 basis points better than previous period of time.
Speaker #3: I propose to start with the commercial part. Eugenio, so once again, we already mentioned that in Romania, yeah, we have, let's say, big pressure on the household budget, yeah, and available income.
Speaker #3: That's why people start to consume less, yeah, and for sure PURCARI being a premium wine have impact in the sold volume. So, Romania register decline of 9%, yeah, and this Romania remain our biggest market have impact on group commercial performance.
Speaker #3: Moldova, yeah, which is, let's say, more stable in terms of consumer change. Still, yeah, we delivered approximately a 1% increase—significantly less than, let's say, the historical trend for the Moldovan market.
Speaker #3: In Bulgaria—yeah, still, Bulgaria remains, let's say, a market in an underdeveloped stage. Yeah, and it continues to deliver strong double-digit growth year over year. So here, we continue to improve our route to market.
Anatol Belibov: In Bulgaria, still Bulgaria remain, let's say, a market underdeveloped stage and continue to deliver strong double-digit growth year over year. Here we continue to improve our route to market and extend our portfolio. This allow us to continue to deliver this strong growth. We have some, let's say, decline in consumption in Central and East Europe, especially in Poland. Here we can say about our volume maker brand, Bostavan, which have, let's say, a significant decline due to consumer trend. In the meantime, we are trying to change or to find new route to market in order to increase our sales of Purcari brand. Rest of the world, it is minus 5.3%. For sure, here we have, let's say, good news and also bad news. Good news mean that we improve significantly our commercial performance in countries like Turkey, Croatia.
Anatol Belibov: In Bulgaria, still Bulgaria remain, let's say, a market underdeveloped stage and continue to deliver strong double-digit growth year over year. Here we continue to improve our route to market and extend our portfolio. This allow us to continue to deliver this strong growth. We have some, let's say, decline in consumption in Central and East Europe, especially in Poland. Here we can say about our volume maker brand, Bostavan, which have, let's say, a significant decline due to consumer trend. In the meantime, we are trying to change or to find new route to market in order to increase our sales of Purcari brand. Rest of the world, it is minus 5.3%. For sure, here we have, let's say, good news and also bad news. Good news mean that we improve significantly our commercial performance in countries like Turkey, Croatia.
Speaker #3: Yeah, and extend our portfolio. And this allows us to continue to deliver this strong growth. We have some, let's say, decline in consumption in Central and East Europe, especially in Poland.
Speaker #3: Yeah, and here we can talk about our volume maker brand, Bostavan, which has seen a significant decline due to consumer trends. But in the meantime, we are trying to change or to find a new route to market in order to increase our sales of the PURCARI brand.
Speaker #3: And rest of the world, yeah, it's minus 5.3. For sure here we can we have let's say good news and also bad news. Good news meaning that we improve significantly our commercial performance in countries like Turkey, yeah, Croatia, but in the meantime Asia and Africa let's say reduce our path of growth in terms of the case of Africa or Asia specific China we have the same trend declining year over year.
Anatol Belibov: But in the meantime, Asia and Africa, let's say, reduce our path of growth in terms of the case of Africa or in Asia specific, China, we have the same trend declining year over year. So we can say that, this period of time, it is about declining volume, but we are trying to mix and to deliver a healthy growth, meaning to change price and to change our promo pressure in order to be sure that we are not affecting our margin. So if you can go now to the next slide, meaning to move from revenue performance to profitability. Once again, it is important to mention that apart from decline -7% in terms of revenue, we managed to reduce also our COGS rates, meaning reviewing our cost of packaging, meaning trying to negotiate new price for all the production costs.
Anatol Belibov: But in the meantime, Asia and Africa, let's say, reduce our path of growth in terms of the case of Africa or in Asia specific, China, we have the same trend declining year over year. So we can say that, this period of time, it is about declining volume, but we are trying to mix and to deliver a healthy growth, meaning to change price and to change our promo pressure in order to be sure that we are not affecting our margin. So if you can go now to the next slide, meaning to move from revenue performance to profitability. Once again, it is important to mention that apart from decline -7% in terms of revenue, we managed to reduce also our COGS rates, meaning reviewing our cost of packaging, meaning trying to negotiate new price for all the production costs.
Speaker #3: So we can say that, yeah, this period of time is about declining volume, but we are trying to mix and to deliver a healthy growth—meaning to change pricing, to change our promo pressure—in order to be sure that we are not affecting our margin.
Speaker #3: So, if you can go now to the next slide—meaning to move from revenue performance to profitability—once again, it's important to mention that apart from the decline of minus 7% in terms of revenue, we managed to also reduce our COGS rates, meaning reviewing our cost of packaging and trying to negotiate new prices for all the production costs.
Speaker #3: That's also being more efficient, yeah, in order to manage this pressure from reduction in sales. So this allows us to reduce from minus 7 in revenue to minus 5 in gross margin.
Anatol Belibov: And also being more efficient in order to manage this pressure from reduction in sales. So this allowed us to reduce from -7% in revenue to -5% in gross margin. I believe this is one of the first year over the last three years when we managed to be flat in terms of total operational cost. So for sure, we can say that start with marketing costs. We are -5.6% in terms of percentage-wise. This was mainly driven by strong control in marketing and advertising costs, also transport costs. And here it is very important to mention that despite of high inflation in terms of fuel cost and through logistic price, we managed to negotiate them to keep mostly flat or below double-digit growth. General and administrative costs increased by 8%.
Anatol Belibov: And also being more efficient in order to manage this pressure from reduction in sales. So this allowed us to reduce from -7% in revenue to -5% in gross margin. I believe this is one of the first year over the last three years when we managed to be flat in terms of total operational cost. So for sure, we can say that start with marketing costs. We are -5.6% in terms of percentage-wise. This was mainly driven by strong control in marketing and advertising costs, also transport costs. And here it is very important to mention that despite of high inflation in terms of fuel cost and through logistic price, we managed to negotiate them to keep mostly flat or below double-digit growth. General and administrative costs increased by 8%.
Speaker #3: I believe this is one of the first years over the last three years when we managed to be flat in terms of total operational cost.
Speaker #3: Yeah, so for sure we can say that, starting with marketing costs, yeah, we are minus 5.6% in terms of percentage-wise. This was mainly driven by strong control in marketing and advertising costs.
Speaker #3: Also, transport cost—and here it is very important to mention that despite high inflation in terms of fuel cost and logistics price—yeah, we managed to negotiate and to keep mostly flat or below double-digit growth.
Speaker #3: General and administrative cost increased, yeah, by 8%. Here, it's mainly because of an increase in salary, in line with changing the structure of the team. But all remaining lines of general and administrative costs, as you can see in our financial statement, registered a reduction.
Anatol Belibov: Here it is mainly because of increase in salary in line with change in the structure of the team. But all remaining line of general and administrative costs, and you can see in our financial statement, registered a reduction. Once again, we are looking line by line in order to find any, let's say, opportunity to improve our profitability. An important point here also is net finance cost, which increased by 4% to RON 13.3 million. And here it is good to go in the financial statement in more details, and important to highlight that we managed to register a 17% increase in interest cost despite of increase by approximately 50% in the total loans balance of the group. And also because of reduction in volatility of our main local currency, Romanian leu, Moldovan leu and Turkish lira, also exchange rate impact decreased versus prior year.
Anatol Belibov: Here it is mainly because of increase in salary in line with change in the structure of the team. But all remaining line of general and administrative costs, and you can see in our financial statement, registered a reduction. Once again, we are looking line by line in order to find any, let's say, opportunity to improve our profitability. An important point here also is net finance cost, which increased by 4% to RON 13.3 million. And here it is good to go in the financial statement in more details, and important to highlight that we managed to register a 17% increase in interest cost despite of increase by approximately 50% in the total loans balance of the group. And also because of reduction in volatility of our main local currency, Romanian leu, Moldovan leu and Turkish lira, also exchange rate impact decreased versus prior year.
Speaker #3: So once again, we are looking line by line in order to find any, let's say, opportunity to improve our profitability. An important point here: also, it's not finance cost, which increased by 4%.
Speaker #3: Yeah, to $13.3 million. And here it is good to go into the financial statement in more detail. It's important to highlight that we managed to register a 17% increase in interest cost, despite an increase of approximately 50% in the total, let's say, loans balance of the group.
Speaker #3: And also, because of a reduction in the volatility of our main local currencies—Romanian leu, Moldavian leu, and Turkish lira—the exchange rate impact decreased versus the prior year.
Speaker #3: So you can see that, yeah, all these factors support us to deliver a flat profitability and an improvement by 2 million, or 6 basis points in EBITDA. So, yeah, here, one important point: in other operating income, which is at the moment 5.7 million, we also include gain.
Anatol Belibov: So we can see that, all these factors support us to deliver a flat in terms of profitability and improvement by 2 million or 6 basis points in EBITDA margin. So here, one important point that in other operating income, which is at the moment RON 5.7 million, we include also gain from a business combination with SERVE Ceptura. And this gain is approximately RON 2.4 million. This is our preliminary internal assumption. For sure, we will have to carry out a business valuation by the specialized company. And during the end of the year, we will include the final number and presenting in the same way adjusted and normalized EBITDA. I think now we can go to the next slide, Eugen. Once again, as of 30 June 2026, our total asset is around RON 941 million, which mean 8% increase year on year.
Anatol Belibov: So we can see that, all these factors support us to deliver a flat in terms of profitability and improvement by 2 million or 6 basis points in EBITDA margin. So here, one important point that in other operating income, which is at the moment RON 5.7 million, we include also gain from a business combination with SERVE Ceptura. And this gain is approximately RON 2.4 million. This is our preliminary internal assumption. For sure, we will have to carry out a business valuation by the specialized company. And during the end of the year, we will include the final number and presenting in the same way adjusted and normalized EBITDA. I think now we can go to the next slide, Eugen. Once again, as of 30 June 2026, our total asset is around RON 941 million, which mean 8% increase year on year.
Speaker #3: Yeah, from business combination with Servicetura. And this gain is approximately $2.4 million. Yeah, this is our preliminary internal assumption. For sure, we'll have to carry out a business valuation by a specialized company.
Speaker #3: And during the end of the year, we will include the final number. Yeah, and present it, you know, in the same way—adjusted and normalized EBITDA.
Speaker #3: I think now we can go to the next slide. Eugenium. So once again, as of 30th of June 2026, our total assets are around 941 million RON, which means an 8% increase year on year.
Speaker #3: And the key driver for sure is increasing the total property and platform equipment by 13%, reflecting both significant investment in capital expenditure. And you know that we announced previously, about two weeks ago, that by 2027 we will invest an average of €20 million year-on-year, starting from 2025.
Anatol Belibov: The key driver for sure is increase in the total property plant equipment by 13%, reflecting both significant investment in CapEx. You know that we announced previously by 2027 that we will invest average EUR 20 million year on year starting from 2025. That is why in H1 2026, we have approximately 53 million RON new investment in CapEx which is work in progress. We also have increase in total assets because of incorporation of SERVE Ceptura starting from 30 June. For sure, from cash position, we are at 14 million RON, which is, let us say, like the needs to cover our operational needs. Otherwise, we are trying to reduce our loans. Net debt increased from 270 million RON in 2025 up to 345 million RON. Once again, we are now at the high speed of our investment.
Anatol Belibov: The key driver for sure is increase in the total property plant equipment by 13%, reflecting both significant investment in CapEx. You know that we announced previously by 2027 that we will invest average EUR 20 million year on year starting from 2025. That is why in H1 2026, we have approximately 53 million RON new investment in CapEx which is work in progress. We also have increase in total assets because of incorporation of SERVE Ceptura starting from 30 June. For sure, from cash position, we are at 14 million RON, which is, let us say, like the needs to cover our operational needs. Otherwise, we are trying to reduce our loans. Net debt increased from 270 million RON in 2025 up to 345 million RON. Once again, we are now at the high speed of our investment.
Speaker #3: So that's why in how from 2020 6 we have approximately 53 million RON new investment in CAPEX. You know working which is work in progress.
Speaker #3: But also, we have increasing total assets because of the incorporation of the trauma service starting from the 30th of June. For sure, from, let's say, a cash position, we are at €14 million, which is, let's say, what we need to cover our operational needs. Otherwise, we are trying to reduce our loans.
Speaker #3: Mean net debt increased from 270 million in 2025 up to 345 million. So, once again, we are now at, let's say, high speed with our investment.
Speaker #3: Yeah, we are trying to finish increasing our capacity in order to continue to support our growth. The current ratio remains above one—so 1.4, compared to 1.88 at year end.
Anatol Belibov: Yeah, trying to finish our increase in capacity in order to continue to fuel our growth. The current ratio remained above one, so 1.4 compared to 1.88 versus year-end. So we are once again compliant with all the bank loans covenant, so now in breach. We are managing very careful everything which is related to cash liquidity. Net debt to equity, you can see that increased from 67% to 80%. Net debt to EBITDA at the moment is at level of 2.95. Significant increase versus year-end and also versus previous period of time. Once again, this is impacted both side by implemented approved budget for 2026 and also by reduction of our sales, which for sure had impact on available cash flow. Overall, they are the most important, let us say, balance sheet items.
Anatol Belibov: Yeah, trying to finish our increase in capacity in order to continue to fuel our growth. The current ratio remained above one, so 1.4 compared to 1.88 versus year-end. So we are once again compliant with all the bank loans covenant, so now in breach. We are managing very careful everything which is related to cash liquidity. Net debt to equity, you can see that increased from 67% to 80%. Net debt to EBITDA at the moment is at level of 2.95. Significant increase versus year-end and also versus previous period of time. Once again, this is impacted both side by implemented approved budget for 2026 and also by reduction of our sales, which for sure had impact on available cash flow. Overall, they are the most important, let us say, balance sheet items.
Speaker #3: So we are once again compliant with all the bank loan covenants, so there is no breach. We are managing very carefully. Everything that is related to cash, liquidity, net debt, debt-to-equity—you can see that increased from 67% to 80%.
Speaker #3: Yeah. And net debt to EBITDA at the moment is at a level of 2.95. Yeah, a significant increase versus year-end and also versus the previous period of time.
Speaker #3: But once again, this is impacted on both sides. Yeah. By the implemented approved budget for 2026, and also by the reduction of our sales, which for sure has an impact on available cash flow.
Speaker #3: So overall, these are the most important, let's say, balance sheet items, and for sure, I'm here to go more deeply into more details if there are additional questions about debt level and liquidity.
Anatol Belibov: For sure, I am here to go more deeply in more details if there will be additional question about debt level and liquidity. I think now again we can move to the next slide. Our guidance for 2026, it was 10% plus 15% in terms of revenue, for sure in line with our historical trend, but also in line with our ambition when we set up this EBITDA margin 24%, 26% and net income 11% plus 14%. Nevertheless, we know that we start the year with different changes, including the situation in Romania, also the crisis in the Middle East. For sure now consumption trend change and we have the healthy result. Here is approximately plus 9% or 7% in terms of revenue and we are below our budget. In terms of EBITDA margin, we are at level of 28.5% so we are above what we planned.
Anatol Belibov: For sure, I am here to go more deeply in more details if there will be additional question about debt level and liquidity. I think now again we can move to the next slide. Our guidance for 2026, it was 10% plus 15% in terms of revenue, for sure in line with our historical trend, but also in line with our ambition when we set up this EBITDA margin 24%, 26% and net income 11% plus 14%. Nevertheless, we know that we start the year with different changes, including the situation in Romania, also the crisis in the Middle East. For sure now consumption trend change and we have the healthy result. Here is approximately plus 9% or 7% in terms of revenue and we are below our budget. In terms of EBITDA margin, we are at level of 28.5% so we are above what we planned.
Speaker #3: So I think now, again, we can move to the next slide. So our guidance for 2026 was, you know, TES plus 10, plus 15 in terms of revenue.
Speaker #3: For sure, in line with our historical trend, but also in line with our ambition when we set up this EBITDA margin—24 to 26—and net income, 11 plus 14.
Speaker #3: Nevertheless, now we know that we start the year with different changes. Yeah. Including the situation in Romania, and also the crisis in the Middle East.
Speaker #3: So, for sure, now the consumption trend has changed and we have healthy results. Here, it's approximately plus 907 in terms of revenue, and we are below our budget.
Speaker #3: In terms of EBITDA margin, we are at the level of 28.5%, so we are above what we planned. And profitability is 8.3%, mainly impacted by decreasing sales.
Anatol Belibov: Profitability 8.3%, mainly impacted by decrease in sales. Once again, both in net income we are below target. Here it is important to mention that this is the phasing of our business, similar like prior year. We start H1 with lower level of profitability and in the second half we are compensating. I think it is important to understand that we have a plan for H1. As Eugen Baltag mentioned, we will launch important brand, we believe Parcela. We are implementing now important project, meaning changing route to market. That is why if you move to next slide, Eugen Baltag, I believe we are confident and we share this guidance that we are targeting plus 5% in terms of revenue growth in terms of full year. Our new guidance updated will be between 0% and 5%. In the meantime, EBITDA margin, we keep as it was previously announced, 24%, 26%.
Anatol Belibov: Profitability 8.3%, mainly impacted by decrease in sales. Once again, both in net income we are below target. Here it is important to mention that this is the phasing of our business, similar like prior year. We start H1 with lower level of profitability and in the second half we are compensating. I think it is important to understand that we have a plan for H1. As Eugen Baltag mentioned, we will launch important brand, we believe Parcela. We are implementing now important project, meaning changing route to market. That is why if you move to next slide, Eugen Baltag, I believe we are confident and we share this guidance that we are targeting plus 5% in terms of revenue growth in terms of full year. Our new guidance updated will be between 0% and 5%. In the meantime, EBITDA margin, we keep as it was previously announced, 24%, 26%.
Speaker #3: So, once again, both in net income we are below target, but here it's important to mention that this is the phasing of our business, similar to the prior year.
Speaker #3: Yeah. We start healthier, with a lower level of profitability. And in the second half, we are compensating. But I think it's important to understand that we have a plan for Health One.
Speaker #3: Yeah. As Eugenio mentioned, we launched an important brand, we believe, Parcella. Yeah. We are now implementing an important project, meaning changing our route to market. That's why, if you move to the next slide, Eugenio, I believe we are confident and we share this guidance that we are targeting plus five percent in terms of revenue growth for the full year.
Speaker #3: Yeah. So our new guidance update will be between zero and five. In the meantime, EBITDA margin we keep as it was previously announced, 24–26, and net income margin we reduce by 1 percentage point to 10–12%. Meaning that, yeah, for sure, we will continue to change all our cost.
Anatol Belibov: Net income margin we reduce by 1 percentage point to 10% plus 12%, meaning that for sure we will continue to challenge all our cost. But in the meantime, for sure it's important to invest in order to deliver this ambitious 5% growth. Why we are reducing net income margin, because we still have no confidence about fluctuation of local currency, especially Romanian leu, and this can, let's say, have impact on our profitability target for 2026. So overall, this is our view in terms of how we can land 2026. We try to manage to go fast through all the slides and we are here together with Eugen Baltag to answer to any of your question.
Anatol Belibov: Net income margin we reduce by 1 percentage point to 10% plus 12%, meaning that for sure we will continue to challenge all our cost. But in the meantime, for sure it's important to invest in order to deliver this ambitious 5% growth. Why we are reducing net income margin, because we still have no confidence about fluctuation of local currency, especially Romanian leu, and this can, let's say, have impact on our profitability target for 2026. So overall, this is our view in terms of how we can land 2026. We try to manage to go fast through all the slides and we are here together with Eugeniu to answer to any of your question.
Speaker #3: Yeah, but in the meantime, for sure, it's important to invest in order to deliver this ambitious 5% growth. Why are we reducing net income margin? Because we still have no confidence about the fluctuation of local currency.
Speaker #3: Especially Romanian lei, and this can, let's say, have an impact on our profitability target for 2026. So overall, this is our view in terms of how we can land 2026.
Speaker #3: We tried to manage to go fast through all the slides, and we are here together with Eugenio to answer any of your questions.
Speaker #2: Yeah, that's all. Indeed, we are starting now the Q&A part, so please unmute yourself and address the questions, if any. Or you can drop them in the chat.
Eugen Baltag: Yeah, Anatol. Indeed, we are starting now the Q&A part, so please unmute yourself and address the questions, if any, or you can drop them in the chat. Last call for the questions.
Eugeniu Baltag: Yeah, Anatol. Indeed, we are starting now the Q&A part, so please unmute yourself and address the questions, if any, or you can drop them in the chat. Last call for the questions.
Speaker #2: So, last call for the questions. Eugenio, hello. Maybe before people think about this, it's very important once again to sum up that 2026 Purcari demonstrated a resilient business model.
Anatol Belibov: Eugen Baltag, allow me before maybe people will think about this. So it's very important once again to sum up that 2026 Purcari demonstrated a resilient business model. And once again looking to other peer, we saw and demonstrated despite of declining volume, we are able to manage all our cost in an agile way. So once again we are here to ensure all the investor analyst that we'll continue to have the same approach to be agile and to manage all our trends in order to secure our profitability.
Anatol Belibov: Eugeniu, allow me before maybe people will think about this. So it's very important once again to sum up that 2026 Purcari demonstrated a resilient business model. And once again looking to other peer, we saw and demonstrated despite of declining volume, we are able to manage all our cost in an agile way. So once again we are here to ensure all the investor analyst that we'll continue to have the same approach to be agile and to manage all our trends in order to secure our profitability.
Speaker #2: Yeah. And once again, looking to other peers. Yeah. We show and demonstrate that, despite declining volume, we are able to manage all our costs in an agile way.
Speaker #2: Yeah. So once again, we are here to, let's say, assure all the investors and analysts that we'll continue to have the same approach. Yeah.
Speaker #2: To be agile, and to manage, you know, all our, let's say, trends in order to secure our profitability.
Speaker #1: Yeah, that's all. And to finish on a positive note, we are starting the harvesting period right now. So the crop—at least the grapes on the vines—are looking great.
Eugen Baltag: Yeah, Anatol. And to finish on a positive note, we are starting the harvesting period right now, so the crop, at least the grapes on the vines are looking great. So this year was good for that. And of course we will come with updates on the harvest during our first quarter results, which will be in November. With that being said, I want to thank you all for allocating the time for our conf call. I understand it's the end of summer, so may it be a very good one for all of us. Thank you. Have a nice day. Bye-bye.
Eugeniu Baltag: Yeah, Anatol. And to finish on a positive note, we are starting the harvesting period right now, so the crop, at least the grapes on the vines are looking great. So this year was good for that. And of course we will come with updates on the harvest during our first quarter results, which will be in November. With that being said, I want to thank you all for allocating the time for our conf call. I understand it's the end of summer, so may it be a very good one for all of us. Thank you. Have a nice day. Bye-bye.
Speaker #1: So, this year was good for that. And of course, we will come with updates on the harvest during our third quarter results, which will be in November.
Speaker #1: With that being said, I want to thank you all for allocating time for our con call, and I understand it's the end of summer. So, maybe a very good one for all of us.
Speaker #1: Thank you. Have a nice day. Bye bye.
Speaker #2: Thank you. Bye bye.
Anatol Belibov: Thank you. Bye-bye.
Anatol Belibov: Thank you. Bye-bye.
Operator: Goodbye
Operator: Goodbye
