Purcari Wineries Group posted a 6.8% year-over-year decline in first-half 2026 revenue to RON 182 million, while maintaining strong profitability metrics despite softer demand in core markets. The Romanian wine producer reported net profit of RON 15.1 million, nearly unchanged from the prior-year period, with gross profit margin expanding to 45.3% from 44.6%. EBITDA margin rose to 28.5%, while net profit margin improved to 8.3%, up 30 basis points year-over-year.
The company attributed the revenue decline to weaker consumer spending in Romania, its largest market, where volume fell 9% as households tightened budgets on premium wine purchases. Central European markets also weighed on performance, with the volume-maker brand Bostavan seeing significant volume declines. Geographic performance was mixed: Bulgaria continued to post double-digit growth, while gains in Turkey and Croatia were offset by declines in China and parts of Africa.
Cost discipline supported margin expansion, with cost of goods sold down 5% and marketing expenses reduced by 5.6%. General and administrative costs rose 8% due to salary increases and organizational changes, while net finance costs increased 4% to RON 13.3 million, reflecting a 17% rise in interest expenses. Total assets grew 8% to RON 941 million, with property, plant, and equipment up 13%. Cash stood at RON 14 million, while net debt rose to RON 345 million from RON 270 million at year-end 2025, pushing the net debt-to-equity ratio to 80% from 67%.
Purcari lowered its full-year 2026 revenue growth guidance to 0%-5%, down from the prior 10%-15% target, citing persistent demand challenges. EBITDA margin guidance was maintained at 24%-26%, while net income margin guidance was trimmed to 10%-12% from 11%-14%. Capital expenditure reached RON 53 million in the first half, with average annual capex projected at EUR 20 million through 2027.
The company completed two acquisitions in Romania during the period— SERVE Ceptura and CaraprodVin— expanding its vineyard footprint by nearly 100 hectares to more than 2,000 hectares. The 2026 harvest has begun with reported strong grape quality. Purcari’s shares were trading near the upper end of their 52-week range at $19.75, up 1.28% on the day.
