Good afternoon, everyone, thank you for joining Purcari Wineries Group. call for Q4 and preliminary unaudited results for 2025. I'm Eugen Baltag, head of investor relations at Purcari. With me today, Mr. Victor Bostan, the CEO and founder of the group, Mr. Anatolie Belibov, the CFO, and Victoria Moldovan, senior IR. We will start with a brief overview of the key highlights for the period, then walk you through the financials and main operational developments across our markets. Of course, we will close with our guidance for 2026, and after that, we will open the line for Q&A. Before we begin, a quick note that some of today's comments may include forward-looking statements, which are subject to risks and uncertainties, and actual results may differ. With that, let's start.
In 12 months, 2025, core revenue grew by almost 15% year-on-year to RON 425 million, with other revenues adding additional RON 12 million, including HoReCa, which was up 6% year-on-year. Romania, Moldova and Bulgaria represented 82% of the group sales, with Romania at 60% and Bulgaria moving into 3rd place by sales ahead of Poland. On brands, Purcari remained the anchor at 60% of group sales and delivered growth across all markets. Bostavan and Crama Ceptura contributed 14% and 13% respectively, while Angel's Estate grew by 25% year-on-year and reached a 5% sale share. Financially, EBITDA reached RON 114 million and a net profit of RON 51 million, with margins of 26% and 12%.
Gross margin was almost for 46% above the five-year average. The reported earnings were impacted by RON 9 million in Forex loss and around RON 4 million higher depreciation versus last year. Of course, the cherry on the top on investor relation, we can mention that following the July voluntary takeover bid, Maspex became the majority shareholder with 73% as of the December 1st , 2025. We have three new directors from their side who joined the board. Our dividend policy was updated to retain profit for investments, with no dividends expected unless the board decides otherwise. Moving forward, again, on the commercial side, we continue to strengthen our core brands through targeted activations and campaigns across key markets, while also bringing innovation to the portfolio.
We launched new products like Motiv Sparkling and introduced a new bottle for Bardar to reach new occasions and attract new consumers. With that said, I will hand over to Anatolie to go into details.
Thank you, Eugen. Good afternoon, our investor, dear investor, dear analysts. For sure, here is the main dashboard of our financial KPI. As already Eugen mentioned, in terms of top line, we delivered strong performance, plus 14%. I would like to share that all these, let's say, sales performance have been delivered via a strong growth equation. We deliver good performance in terms of volume, more than 10%. Also we deliver very strong pricing and mix. For sure, prior year it was mostly about pricing, and because we face high increase in our cost of raw materials, especially packaging and also grapes, we managed to implement several wave of price increase across all the region.
I think another important point is to share is that in 2025, we managed to deliver pre from four quarters more than RON 100 million. This is first time in the Purcari. Up to now, it was maximum Q4, which is, let's say, Christmas, end of the year. Now, we deliver Q2, Q3 and Q4 more than RON 100 million, which I believe it's a strong achievement. Also looking at the Q4 2025, you can see that it's also +15.5%. Yes, in Q4, you know, we deliver double than Q1 2023. I think Q4, it is the highest level in the our company. This prove once again that we are in the, let's say, strong growth wave.
Going to the profitability KPI, for sure, gross margin, we deliver plus 8% versus prior year, achieving RON 200 million. You can see that in gross margin percentage, it slightly decreased from 48.4% to 45.8%. Here it's an important point. If you go to our financial statement, you can see that here we have also this IFRS requirement to adjust fair value of grapes, which make impact on gross profit. In a like for like situation, our gross profit margin is similar year-over-year, approximate 47.5%. Once again, this strong growth have been delivered without decrease in our profitability. The same trend is in our EBITDA. We are increasing by 7% to RON 114 million.
Percentage wise, yeah, it's 26.1, decreasing by 1.7 percentage point. Once again, it's very important to highlight that this is a very good, let's say, EBITDA margin compared to our benchmark. Net profit, yeah, for sure, you can see that we registered a decrease of 13.5%. Yeah, achieving 11.6% net profit margin. I believe that is better to go in details once again to highlight Forex impact, yeah, and also other one of which impact our P&L. I propose to move to next slide. Still, I think it's very important to mention our good performance. Yeah, we achieved this high, historical high level of sales in Q4, RON 130 million. Yeah, which is approximately one third of total revenue for the year.
Romania, yeah, remain our, let's say, main market with 61% share in total revenue. Romania, despite of delivering very strong growth for the last years, still, yeah, achieved 16.6% growth, which I believe for a domestic and, let's say more stable market, it's good achievement. Here, yeah, we are trying to push or reinforce our, let's say, penetration. For sure, the main driver remain to be Purcari, but also in current year and other brand like Ceptura, like Bostavan, deliver strong performance. I think it's good to mention also Bulgaria, yeah, which continue to deliver strong growth because, yeah, it's a small market. We start operation in 2022, but it's important to highlight that Bulgaria became higher, yeah, versus Poland, which for long time was the third biggest market.
I think it's important to also to highlight this performance for the Bulgaria team. Moldova +9%. Moldova, it's a country with high share of Purcari product. Here the growth to deliver higher double-digit growth became more complicated. Despite of this, 9%, we believe it's very, very good achievement for our team. Here we present rest of world and SEE, but total export. Because it's good to look like this. We deliver also +10%. After several years with export having not a good trend. At least negative or below 10% growth. Current year, we deliver +10%. For sure.
SEE market, which register a decline of -7%, yeah, because of lower performance in Poland, yeah, and Czech Republic, which partially have been offset by Ukraine and Baltics country. The rest of the world, including Africa, Asia, yeah, and also Turkey, managed to compensate the other performance in SEE. Overall, yeah, we deliver very strong result, let's say, in all our channel. The same situation you can see in our brand portfolio. Just one second, Eugen. Here, yeah, once again, it's important to mention that Bostavan, yeah, after several years with, let's say, single-digit growth or negative trend, yeah, we managed to achieved +8%, yeah, which we believe that is very good for our, let's say, mainstream brand. Now we can go to the our financial our trend.
Here you can see that we are in line with, let's say, prior year's trend with revenue, with a CAGR of 15%. Yeah, for sure. We more than double our revenue in five years. We double our gross profit in five years, and also we double our EBITDA in five years. We can say that we are in line, and we are trying to accelerate our main KPI. Going in more details in our P&L. Once again, about revenue, just to highlight, yeah, that we are delivering strong growth. Once again, to ensure that this growth are not affect our initial focus to deliver profitable and focus in premium. Yeah, we are continuing to deliver premium and Purcari, our premium brand, have the highest growth rate, yeah.
Also from gross profit margin, once again, we are decreasing by 3 percentage point for 12 month. Once again, this is mostly driven by IFRS change in line with fair value grapes valuation. Without this gross profit margin, it more or less is similar. Because I mentioned in the previous slide that net profit have been decreased, yeah. Our OpEx, increase in our OpEx, have a big impact. We can see that both marketing and sales, but also general and administrative expense grew by 23% or 25%. This have big impact in our profitability. Once again, this is in line with what we communicate in our previous call with investor. We are now setting the new team in order to deliver sustainable growth.
Yeah, so that's why at the moment, yeah, we have, let's say, this increase in OpEx, but I would like to ensure that all these numbers are in line with budgeted ones. We did not spend more than we budget for current year, for 2025, sorry. Marketing and sales, yeah, it's +23%. Here, the main driver, it's our cost with Returo in Romania. You know that for the second year, yeah, it is implemented and have big impact, including for Purcari. The second impactor represent investment in our brands. It's marketing and, let's say, trade marketing. The third one, it's sales, yeah. Sorry, salary, which also increase year-on-year. If you speak about general and administrative expense, yeah, this 25% increase, it's mainly driven by increase in salary-related cost.
We already informed you about the impact coming from new incentive plan, which have big impact in increase year-on-year, but also some selective change in number of TE and also salary review. EBITDA margin reached 114%, not to mention once again what I say in previous slide, and 26% margin, we believe it's very strong margin, in line with average for the last year. Before to go to the next project, I think it's good to go to next slide, and I will try to explain once again impact on gross margin change and ultimate profitability. This slide, which are using like a bridge from prior year to current year, we are showing that we start with approximately RON 59 million.
We deliver in terms of gross profit approximately plus EUR 15 million more. From financial statement, you can see in the note that, the difference in fair value of grades, and we explain very clearly, the reason behind. We can see that additional EUR 10 million, yeah, it's a part of this fair value adjustment. In gross profit, like for like, we increase for more than EUR 25 million. This have been partially offset by OpEx, which already mentioned that, increased by 22% and here mostly it's return and, salary, other operating expense. Also, I believe it's very important to mention that despite of increasing by more than 40% in our loans exposure, yeah, and we see this number in financial statement, we managed to be flat in terms of interest, yeah.
This is because we start and we are at the moment under change of financial structure in order to decrease pressure of interest. It was marked as like for like, so no impact in 2025, but we have some historical adjustment from 2024. A normalized profit, it's not IFRS, it's normalized profit up at level of RON 62.5 million. We should register at least RON 4 million increase. Because of Forex and current year it was, you know, perfect storm, Moldovan lei, Romanian lei, and also Turkish lira, being highly impacted by depreciation versus EUR. I would like to remind you that our biggest impact is coming from loans or in order to decrease interest, we try to contract loans in EUR.
This have big impact for all the country, Romania, Moldova, and also in Turkey. In Turkey, it more than 45% depreciation year-on-year for the currency. Because of this and also management want of because of change in the structure, we finish at RON 15.8 million net profit. For sure, if some additional question will came, Eugen, we can talk during the Q&A. Now moving to the next slide. For sure, this is another important slide for our investor. Let's start with cash position. More or less in line, so no big fluctuation. I would like to remind you that we are trying to manage, yeah, and all the available cash or to pay in advance credit or, you know, to put on our deposit.
Net debt increased significantly to EUR 270. Once again, well, I would like to remind you that 2025, we invest more than EUR 50 million in CapEx. As we present in our previous call, we plan to have minimum the same level in 2026 or more. I would like to remind that we have significant CapEx investment in extension of Purcari production line. Prior year it was, you know, the bottleneck, the maximum, let's say we use 100% of bottling capacity. That's why now we invest in the next cycle in order to cover the growth. Here, this is the reason for invest increasing net debt. Once again, for sure, Net Debt EBITDA, it's 2.37.
You remember when you speak about our previous about strategy is we are looking to be at level of 2 in terms of Net Debt to EBITDA. You know, in case of Purcari revenue, yeah, and CapEx cycle, it's slightly different. That's why now it's peak of the CapEx investment, but approximately up to 2028, it should be more or less at the level of 2. No big change in case of current ratios and cash ratios. Once again, for sure, now it's 2025, 2026 is the year of investment, yeah, in order to ensure production capacity to field growth. Just to make a recap about our achievement.
We share a guidance in February 2025 in terms of revenue between 12% and 17%, and now we are at 14% in the middle, so we deliver our promise. Our EBITDA margin to us put like a benchmark or target for between 26% and 28%, and we achieve 26%, which despite of all the inflation, especially, inflation, big inflation here in Moldova, where it's a big part of our production capacity, Moldova have been highly impacted by a change in especially in energy price. I think it's good achievement. Net income or net profit at approximately 12% with explanation which we shared in the previous slide. 2 from 3, let's say, our guidance have been achieved, and net profit 1% below guidance.
Now I think it's good to move to the-- our vision for 2026. This is the guidance which have been discussed by me and approved with our board of directors. For sure we know the situation in our main market, meaning here Romania and Moldova. We are trying to be optimistic but realistic. That's why for next year or already for current year, our ambition is to deliver double-digit growth, but in a range from 10-15%. For sure we have a lot of change, especially in Romania. In Romania we see the news about decreasing consumption, also about inflation trends. This is our view. And we are looking to, let's say, deliver what we promise and not overpromise.
In terms of EBITDA margin, we are trying to keep the same trend like prior year. Considering the pressure in let's say, production cost, we consider to decrease slightly to 24%-26%. Net income margin, considering also the actuals for 2025 and our expectation, we decrease it to 11.14%. Once again, current year still, I think, have big impact here in Moldova, where we have couple of production impacted by high cost in energy, which did not make correction. Also still we have part of the wine, bulk wine from 2024, which was high, which will impact our profitability KPI. This being said, this is all about our financials. I think now we can move to the Q&A session.
Yeah, also maybe we can cover, Eugen, part of the uncovered question about profitability or commercial performance.
Indeed. Anatolie, thank you for the insights. As Anatolie already said, with that, we conclude our prepared remarks, and we are now happy to take your questions. Please either put them down in the chat or unmute yourself and address it directly. Anatolie, I think we already have one question from Caius, and Caius, good to hear you and see you at our conference call. The question is related to fair value of the grapes.
Thank you for the question, Caius. You can get much more details from our financial statement in the note for other income and expense, but I will try to be shortly. In line with IFRS requirement, IAS 41, we have to analyze, let's say, our performance versus market performance. That's why each year we are looking for our cost per kilogram of grapes across all the group, and compare specific for each, let's say, region with the price from the market. In case our price per kilogram, it's better than the market, in this case, we have a gain. If the price per kilogram is lower, we have a loss.
That's why prior year, remember that we have a big impact from revaluation, meaning that because of weather condition, yeah, we have lower, let's say, yield. Yeah. This because the agriculture cost more or less are fixed. Yeah, we have a loss. Current year we have good performance, yeah, including, you know, in the area where we have expensive grapes, meaning like special grapes for Purcari. Yeah, also Romania. For this reason, yeah, we registered this, let's say, gain, and this have impact on gross margin and other expense or income. Eugen, we can, you know, with Caius, we can have a separate call to go in more technical discussion about this.
Sure. Okay. Yes, Caius. We had a better yield of grapes in 2025 if to compare with 2024 when it was a drought, an excessive drought in the entire region.
Here one important point also, yeah, is to ensure all our investor that we are looking to decrease or increase efficiency of agriculture, yeah, and, you know, trying to challenge all the cost. Another point is that when you have bad weather condition, you know, you have to invest more in agriculture in order to secure the grapes. Yeah, also, you know, is double hit in case like 2024 when we have not good weather condition. Anatolie?
We have another question from.
Mm-hmm
... Eugene Ludovic.
Yeah.
Oh, okay. Actually, we have three of them. I will start reading one by one. "Hi from the new majority shareholders. When will our Purcari products be integrated into CDC distribution network?" The second one is, "Considering that Purcari is a premium brand and a top product, what development plan do you have for the company?" The third one: "What is the strategy for 2030 of a new majority shareholder for Purcari?" Eugen, thank you for your questions. Indeed, there are three directions. First of all, you already know that we are part of Maspex Group, and right now we are in the middle of integration. It means that we are aligning, let's say, our teams. We have cross teams which are working on different processes.
To have a strategy for 2030 in an environment where everything is changing very, very fast is quite obsolete, so we are planning one, two years ahead. At this moment, we stick to our previous strategy to double our revenue and profits by 2027. Regarding Purcari brand, indeed it's a premium brand, and what we are doing is just putting all our efforts towards this brand in order to distribute it more efficiently in our existing markets and new markets. The fact that we having large CapEx investments at Château Purcari proves that because imagine last investment cycle was in 2020 when we doubled the capacities. We are in 2026, and we are approaching the bottleneck in production.
We're investing again in order to secure the future growth. Regarding CDC, here we have to cover, let's say, the Poland. I think it's too early to give an answer on that. Of course, we are looking with together with Maspex team and with our existing distributors in Poland and CIS countries. We are looking for the best formula of collaboration in order to increase the sales and in a profitable manner. At the moment, we will have an update on that. Definitely, we will report, and we'll make it public on Bucharest Stock Exchange.
Just allow me, Eugen, to add. For sure, yeah, with CDC, yeah, we are in the discussion. We are looking, you know, to find something not covered yet, yeah, in this region, yeah, and also for this product. Once again here, we are trying to find the best synergy, yeah, and trying to find place where we need to improve, yeah, for sure. This is still discussion. We are looking, and for sure, when we'll have, let's say, more or less final setup, yeah, we will inform you in proper way.
Thank you, Eugene\. Thank you. Any other questions which we could address during this call? It seems we have been very efficient, and Anatolie, you have prepared a very good presentation and delivered a lot of details. In case we don't have any other questions, we are going to close this call, and yeah. What on our side, we are going to deliver on the results. The entire team of Purcari are working towards that.
Thank you, Eugen. Thank you to all the investor and analysts. Have a good day. Bye-bye.
Thank you. Bye-bye.