A winemaker from Moldova wants to toast with “Sultan” Erdogan! Expanding into Turkey

The wine producer Purcari Wineries has acquired 90% of the newly-formed Turkish company, HTA Danișmanlik Turizm Diș Ticaret Limited Șirketi.

The establishment of the company in Turkey is a step forward to enhance Purcari’s footprint and position in the Middle East and Africa region. The current acquisition is part of the Group’s commercial strategy to develop new markets, following the opening of a non-commercial representation office in China in 2019 and a commercial company in Ukraine in 2021.

For the first 9 months of the previous year, Purcari Wineries reports an 18.87% increase in pre-tax EBITDA earnings, reaching 72.17 million lei, up from 60.71 million lei in the same period of 2022.

Purcari Wineries (WINE) achieved revenues of 252.51 million lei in the first 3 quarters, a 26.40% increase from the previous financial year’s 188.77 million lei, while the cost of these sales rose by 36.11% to 148.66 million lei from 109.22 million lei.

This performance comes in the context of a 37% increase in sales in the main market of Romania, where increases apply to all brands. The growth is 3% for Moldova, while in Asia, the first signs of economic recovery in Q3 do not reflect in wine consumption.

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For Ukraine, there is a trend of recovery after the shock of the Russian invasion at the beginning of 2022, supported by the Purcari and Bostavan brands. In a market where the company announced at the onset of the conflict that it would only accept sales with 100% advance payment, it is now trying to expand Bardar sales through Coca Cola Beverages Ukraine. “We maintain the local team and increase distribution in large networks,” says the quarterly report.

The total global result attributable to shareholders increased by 23.72% to 43.76 million lei, from 35.37 million lei. For the entire year 2022, net profit was 56.16 million lei, a decrease of 13.73% compared to 2021, and the company paid a dividend with a yield of 5%.

As of September 30, Purcari’s total assets were 648.99 million lei, 13.90% higher than the 569.76 million lei at the end of 2022. In the same reporting period, total liabilities increased by 15.35% to 302.92 million lei, from 262.61 million lei.

In the public listing offer in February 2018 and subsequently, Purcari attracted several investment funds to its dispersed shareholding. The latest significant entry is from the Americans at Firebird, who specialize in placements in the former Soviet space.

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