Good afternoon, everyone, and thank you for joining Purcari Wineries Group results call for Q4 and preliminary unaudited results for 2025. I'm Eugen Baltag, Head of Investor Relations at Purcari, and with me today are 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, and 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 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 third 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% sales share. Financially, EBITDA reached 114 million RON and a net profit of 51 million, with margins of 26% and 12%.

Gross margin was almost 46%, above the five-year average, and the reported earnings were impacted by 9 million RON in forex loss and around 4 million higher depreciation versus last year. Of course, the cherry on the top on investor relations, we can mention that following the July voluntary takeover bid, Maspex became the majority shareholder with 73% as of 31st December 2025.

We have three new directors from their side who joined the board, and 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 continued to strengthen our core brands through targeted activations and campaigns across key markets, while also bringing innovation to our portfolio.

We launched new products like Motive 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 dear investors, 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 this let's say sales performance have been delivered via a strong growing question. We delivered good performance in terms of volume, more than 10%, and also we delivered very strong pricing and mix.

For sure, prior year it was mostly about pricing, and because we faced high increase in our cost of raw materials, especially packaging and also grapes, we managed to implement several waves of price increase across the all the region. I think another important point is to share is that in 2025, we managed to deliver three from four quarters more than 100 million RON.

This is first time in the Purcari. Up to now, it was maximum Q4, which is let's say Christmas end of the year, but now we delivered Q2, Q3, and Q4 more than 100 million RON, sorry, which I believe it's a strong achievement.

Also looking at the Q4 2025, you can see that it's also plus 15.5%. Yes, in Q4, we delivered double than Q1 2023.

I think Q4 it is the highest level in the our company, and this proved once again that we are in the let's say strong growth wave. Going to the profitability KPI, for sure, gross margin, we delivered plus 8% versus prior year, achieving 200 million RON.

You can see that in gross margin percentage, it's 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 made impact on gross profit. In a like-for-like situation, our gross profit margin it's similar year-on-year, approximate 47.5%.

Once again, this strong growth have been delivered without let's say decrease in our profitability. The same trend it's in our EBITDA, we are increasing by 7% to 114, but percentage-wise, 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, for sure you can see that we register a decrease of 13.5%, achieving 11.6% net profit margin.

I believe that it's better to go in details once again to highlight forex impact and also other one-off which impact our P&L. I propose to move to next slide.

Still, I think it's very important to mention our good performance. We achieved this high historical high level of sales in Q4, 130 million RON, which is approximately one-third of total revenue for the year.

Romania 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 achieved 16.6% growth, which I believe for a domestic and let's say more stable market, it's good achievement.

Here, we are trying to push or reinforce our let's say penetration. For sure, the main driver remained to be Purcari, but also in current year, and other brands like Crama Ceptura, like Bostavan, delivered strong performance.

I think it's good to mention also Bulgaria, which continue to deliver strong growth, because it's a small market, we start operation in 2022, but it's important to highlight that Bulgaria became higher 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, plus 9%. Moldova it's let's say a country with let's say high share of Purcari product.

Here the growth to deliver high and 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 CEEs, but total export, because it's good to look like this, we deliver also plus 10%. After several years with export having let's say not a good trend, at least negative or below 10% growth, current year we delivered plus 10%.

For sure, CEE market, which register a decline of minus 7% because of lower performance in Poland and Czech and Slovakia, which partially have been offset by Ukraine and Baltics country, but rest of the world, including Africa, Asia, and also Turkey, managed to compensate the underperformance in CEE. Overall, we delivered very strong results let's say in all our channels.

The same situation you can see in our brand portfolio. Just one second, Eugen.

Here once again, it's important to mention that Bostavan, after several years with let's say single-digit growth or negative trend, we managed to achieve plus 8%, which we believe that is very good for our let's say mainstream brand. Now we can go to the our trend.

Here you can see that we are in line with let's say prior years' trend. We have, with a CAGR of 15%.

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 that we are delivering strong growth, once again to assure you that this growth are not affect our initial focus to deliver profitable and focus in premium. We are continuing to deliver premium, and Purcari, our premium brand, grew at the highest growth rate.

Also, from gross profit margin, once again, we are decreasing by 3 percentage point for 12 months. Once again, this is mostly driven by IFRS change in line with fair value grapes valuation.

Without this, gross profit margin more or less is similar. Because I mentioned in previous slide that net profit have been decreased, our opex, increase in our opex have a big impact.

You can see that both marketing and sales, but also general and administrative expense, grew by 23% or 25%, and this have big impact in our profitability. Once again, this is in line with what we communicate in our previous call with investors.

We are now setting the new team, new team in order to deliver sustainable growth. That's why at the moment we have let's say this increase in opex, but I would like to ensure that all these numbers are in line with budgeted one.

We did not spend more than we budgeted for current year, for 2025, sorry. Marketing and sales is plus 23%.

Here the main driver, it's our cost with RetuRO in Romania. That for the second years it is implemented and have big impact including for Purcari Group.

The second impact represent investment in our brand, it's marketing and let's say trade marketing. The third one, it's sorry, salary, which also increased year-on-year.

If we speak about general and administrative expense, this 25% increase, it's mainly driven by increase in salary-related costs. We already inform 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 FTE 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 net profit, I think it's good to go to next slide, and I will try to to explain once again impact on gross margin change and also net profitability.

This slide, which are using like a bridge from prior year to current year, we are showing that we start with approximately 59 million RON. We deliver in terms of gross profit approximately plus 15 million more, but from financial statement, you can see in the notes that the difference in fair value of grapes, and we explain very clearly the reason behind.

You can see that additional 10 million, it's part of this fair value adjustment. In gross profit, like-for-like, we increased for more than 25 million.

This have been partially offset by opex, which already mentioned that increased by 22%, and here mostly it's RetuRO 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, you can see this number in financial statement, we managed to be flat in terms of interest, and this is because we managed we we started and we are at the moment under change of financial structure in order to decrease pressure of interest.

EcoSmart is like-for-like, no impact in 2025, but we have some historical adjustment from 2024. A normalized profit, it's not IFRS, it's normalized profit, at level of 62.5, we should register at least 4 million increase, but because of forex, and current year it was, a perfect storm, Moldovan leu, Romanian leu, and also Turkish lira being highly impacted by depreciation versus euro.

I would like to remind you that our biggest impact is coming from loans, where in order to decrease interest, we tried to contract loans in euro, and 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 for the currency.

Because of this, and also management one-off because of changing the structure, we finished at 50.8 million net profit. For sure, if some additional question will came, Eugen, we can talk during the Q&A, now moving to next slide.

For sure, this is another important slide for our investor. Let's start with cash position.

More or less in line, no big fluctuation. I would like to remind you that we are trying to manage all the available cash or to pay in advance credit or, to put on our deposit.

Net debt increased significantly to 270. Once again, well, I would like to remind you that 2025 we invest more than 50 million euro in capex, and as we present in our previous call, we plan to have minimum the same level in 2026 or more.

I would like to remind you that we have significant capex investment in extension of Purcari production line. Prior year, it was, the bottleneck, the maximum let's say we used 100% of bottling capacity, so that's why now we invest in the next cycle to in order to cover the growth.

Here this is the reason for increase in net debt. Once again, for sure, net debt/EBITDA it's 2.37.

You remember when we speak about our previous about strategy is we are looking to be at level of 2 in terms of net debt to EBITDA. In a case of Purcari revenue and capex cycle, it's slightly different, so 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 ratio. Once again, for sure, now it's 2025, 2026 is the year of investment in order to ensure production capacity to build the 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, we deliver our promise. Our EBITDA margin was, put like a benchmark or target for in between 26% and 28%, and we achieved 26%, which despite of all the inflation and especially, inflation, big inflation here in Moldova where it's a big part of our production capacity, and Moldova have been highly impacted by 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. Two from three 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% to 15%. For sure, we have a lot of change, especially in Romania.

In Romania, we see the news about decreasing consumption, also about inflation trend. 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, but 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 have big impact here in Moldova where we have double production impacted by high cost in energy, which did not make correction, and 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, and 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.

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.

I will try to be shortly, so, yeah, 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, and 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, we have a lower let's say yield, and this because fixed cost, the agriculture costs more or less are fixed, we have a loss.

Current year, we have good performance, including in the area where we have expensive grapes, meaning like special grapes for Purcari, also Romania. For this reason, we registered this let's say gain.

This is have impact on gross margin and other expense or income. Eugen, 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 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 of our investors that we are looking to increase efficiency of agriculture, yeah, and trying to challenge all the cost. Another point is that when we have bad weather condition, you have to invest more in agriculture in order to secure the grapes.

It's double hit in case like 2024 when we have not good weather condition.

We have another question from

Eugen

Ludovic. Actually there are three of them.

I will start reading one by one. So, "Hi, for 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.

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. Now, to have a strategy for 2030 in an environment where everything is changing very, very fast is quite obsolete, we are planning one, two years ahead.

At this moment, we are 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 toward 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, now we are in 2026 and we are approaching the bottleneck in production. We are investing again in order to secure the future growth.

Regarding CDC, indeed 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 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 will make it public on Bucharest Stock Exchange.

Just allow me, Eugen, to add. For sure, yeah, with CDC, yeah, we are in the discussion, yeah, and we are looking 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 for sure. This is still a discussion, yeah, 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, Eugen. 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, on our side, we are going to deliver on the results. The entire team of Purcari are working toward that.

Thank you, Eugen. Thank you to all the investors and analysts.

Have a good day. Bye-bye.

Thank you. Bye-bye.