Purcari wants to pay 26 million lei in dividends

Wine producer Purcari Wineries proposes to allocate 26.3 million lei in dividends, equivalent to a 45% distribution of last year's profit of 58.7 million lei, according to our calculations based on the company's reports published on the Bucharest Stock Exchange (BVB) website.

The value of the unit dividend is 0.65 lei, equivalent to a net yield of almost 4% compared to the issuer's share price yesterday, at mid-trading session, of 15.1 lei. The proposed record date, which defines the shareholders who will benefit from the dividends if the proposal is voted on in the AGM, is September 2, while the payment date is September 8.

Also on the agenda is the approval of a buyback program of up to 200,500 shares to honor the commitments assumed under the Management Incentive Program 2024-2027, which already received the shareholders' approval in May last year. Purcari is also seeking shareholders' approval for a flexible option to increase the company's capital by issuing 2.57 million new shares, if necessary.

"Although we do not intend to use this authorization immediately, it provides the Board of Directors with the necessary flexibility to react quickly - either to capitalize on an acquisition opportunity or to protect the company's position in an uncertain context," the company's report states.

Last year, Purcari reported revenues of 382.3 million lei, 3% more than in 2023, while net profit amounted to 58.7 million lei, down 8% compared to the previous year.

Victor Bostan owns, through Amboselt Universal, 20% of the Moldovan wine producer, whose stock market valuation is about 610 million lei.