Purcari Wineries posts 18 percent sales growth in 2019, claims ‘sufficient resources to continue operating’ in COVID-19 context

In 2019, sales of the Purcari Wineries Group increased 18 percent year on year to 199.1 million RON. Romanian market remained the largest growth driver, growing 26 percent year-on-year and accounting for 42 percent of sales of finished goods.

The Group says it has sufficient resources to continue operating In the light of the COVID-19 pandemic.

Last year, Purcari Wineries maintained a stable Gross Profit margin, with slight increase by 1 pp year-on-year to 50 percent. Marketing and sales expenses grew by 41 percent, mostly pushed by trade and marketing activities with purpose to create space for future growth and higher salary costs.

Purcari Wineries company invested 43 million RON in CAPEX, primarily meant to significantly expand production capacities, acquisition of production facility and vineyards, built new bottling section with storing and warehouse facilities, modernized the sewage processing facility, re-equipped grape processing and fermentation equipment, acquired Mythos vinificators which lowers CO2 footprint, as reusing it during fermentation, extended storing capacities and aging warehouse, planting new vineyards.