Purcari Wineries : ANNOUNCEMENT

Purcari Wineries Public Company Limited

FINANCIAL REPORT for the 1st HALF of 2022

Including the Non-Audited, Interim Condensed Consolidated

Financial Statements for the six-month period ended 30 June 2022

Purcari Wineries Public Company Limited

Non-Audited, Interim Condensed Consolidated Financial Statements for the six-month period ended 30 June 2022

all amounts are in RON, unless stated otherwise

Name of the issuing entity: Purcari Wineries Public Company Limited

Social headquarters: 1 Lampousas Street, 1095 Nicosia, Cyprus

Fax number: [phone]

Unique registration code: HE 201949

Registration number in the Trade Register: HE 201949

Issued share capital: 401,175 EUR

The regulated market on which the issued securities are traded: Bucharest Stock Exchange

Contents

I.

Board of Directors and other officers

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1. Statement by the Members of the Board of Directors and other responsible officers of the Company for the preparation of the Non-Audited, Interim

	Condensed Consolidated Financial Statements for the six-month period ended
	30 June 2022	4
III.	Interim Management Report	5
IV.	Condensed Consolidated Interim Statement of Financial Position	12
V.	Condensed Consolidated Interim Statement of Comprehensive Income	13
VI.	Condensed Consolidated Interim Statement of Cash Flows	13
VII.	Condensed Consolidated Interim Statement of Changes in Equity	15
VIII.	Notes to the Condensed Consolidated Interim Financial Statements	16

Note: These financial statements have been prepared in accordance with the international reporting standards adopted by the European Union ("IFRS").

Base of Reporting: According to Regulation C.N.V.M. no. 5/2018 on Issuers and Operations with Securities and Law 24/2017 on Issuers of Financial Instruments and Market Operations; according to Section 10 of the Cyprus Transparency Requirements (Securities for Trading on Regulated Markets) Law of 2007 as amended

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Purcari Wineries Public Company Limited

Non-Audited, Interim Condensed Consolidated Financial Statements for the six-month period ended 30 June 2022

all amounts are in RON, unless stated otherwise

1. Board of Directors and other officers

Board of Directors:
Name	Date of appointment	Title
Monica Cadogan	Listing date (first appointment),	Non-executive, Independent Director
re-appointed by the AGM on 28 April 2021
Vasile Tofan	Listing date (first appointment),	Non-executive Director
re-appointed by the AGM on 29 April 2020
Neil McGregor	Listing date (first appointment),	Non-executive, Independent Director
re-appointed by the AGM on 28 April 2022
Victor Bostan	Listing date	Executive Director
Eugen Comendant	Appointed by the AGM on 29 April 2020	Executive Director

Chairman of the Board of Directors:	Vasile Tofan, firstly elected by the Board of Directors to this position
	on 14 June 2018, was most recently re-elected as Chairman by the
	Board on 28 April 2022
Company Secretary:	Inter Jura CY (Services) Limited
Registered office:	1, Lampousas Street
	1095 Nicosia
	Cyprus
Registration number:	HE 201949

The Financial Report for the First Half of 2022, including the Non-Audited, Interim Condensed Consolidated Financial Statements for the six-months period ended 30 June 2022 was approved by the Board of Directors on August 26th, 2022.

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Purcari Wineries Public Company Limited

Non-Audited, Interim Condensed Consolidated Financial Statements for the six-month period ended 30 June 2022

all amounts are in RON, unless stated otherwise

III. Interim Management Report

The Board of Directors presents its Interim Management Report to be followed by the Non-Audited, Interim Condensed Consolidated Financial Statements for the Company and its subsidiaries (the "Group") for the six-month period ended 30 June 2022.

1. Principal activities of the Group remain the same, but new segment added to diversify the business

Purcari Wineries Plc ("Purcari", "Group", or "Company) is one of the largest wine groups in the Central and Eastern Europe (CEE) region. The Group manages circa 1,400 hectares of vineyards and operates four production platforms in Romania and Moldova, three of which are dedicated to wine production using grapes from own vineyards and from third- party suppliers and one is dedicated to brandy production. In June 2022, the Group had over 700 employees across its four production platforms.

The Group is the leader in the premium wine segment in Romania and the largest wine exporter from Moldova, delivering to over 40 countries in Europe (Poland, the Czech Republic, Slovakia, Ukraine, Norway, UK, etc.), in Asia (China, Japan, South Korea) and in North America (Canada and USA).

Even if the core business of the Group is production and sale of wine and brandy, a new segment appeared in 2021, through the acquisition of the Romanian subsidiary Ecosmart Union SA involved in waste recycling management services (which for the year ended 31 December 2021 has not been yet a significant one).

2. Economic analysis of the results and comparative economic analysis in relation to the previous corresponding period

Economic performance and financial analysis

The Company's revenue increased +16% YoY in the first half of 2022, reaching RON 123.9 million compared to RON

106.5 million in the similar period of the last year. Sales in Q2 2022 accelerated and increased by +20% compared to Q1

2022.

During 1H 2022 the Company realized a net profit of RON 20.9 million, increasing by +2% YoY. Net profit for Q2 2022 recorded RON 8 million, decreasing compared to Q1 2022, when the company realized a net profit of RON 12 million. This is due to the decrease in gross margin by -9% in Q2 2022 versus Q1 2022, as effect of increased cost of bulk wine, packaging and transportation.

Total assets increased by 4% compared to 2021 year end, mainly driven by a net increase in property, plant and equipment with +8%, as the Company made RON 20 million of capital expenditures during first six month of 2022, while the inventories increased by +7% compared to 2021YE as the Company purchased packaging and bottled in excess in order to mitigate the risks related to disruption of the supply chains, affected by the war in Ukraine.

Company's total liabilities increased by +8% versus end of 2021, mainly on increase of payables with RON 8 million RON, as the Company distributed dividends, which will be paid on 8th September 2022.

The core business sales reached RON 112,6 million, an +8% upside compared to the first half of previous year. Moldovan market contributed the most to the growth, increasing sales by +44% YoY, while revenues in Romania grew +7% YoY. Asian region registered a high growth, up +30% YoY.

The new business segment - waste recycling management services - have added almost RON 9 million to the total revenue.

For details regarding sales of finished goods by brand and geographic region for the 1st Semester of 2022 and similar period of last year please see note 15 to these financial statements.

The evolution of sales by main markets is described below:

• Romania: Sales increased by +7% YoY. Very strong performance for its brandy portfolio - Bardar brand, up +70% YoY. Other brands like Purcari and Crama Ceptura demonstrated moderate growth between +5% and +7% YoY, while Bostavan sales decreased -9% YoY, after price increase, necessary to adjust the production costs;
• Moldova: Strong growth of +44% YoY, continuing V shape recovery across all brands and channels;
• Poland: Revenues increased by +10% YoY, on a price increase of Bostavan brand - a mass market one, keeping a
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