Abrau-Durso Group Summed Up the Results of 2022

The Abrau-Durso Group, a leader on the sparkling wines market, summed up its financial results of 2022. The Group achieved high results and demonstrated the record-breaking numbers of sales, revenue and net profit.

In 12 months of 2022, 54.171 million bottles were sold, up 18.06% from 2021, of which 52.857 million bottles of own-produced alcohol and non-alcoholic products (up 18.5% from 2021). According to the management reporting, the revenue of the Abrau-Durso Group increased by 22.35% and amounted to RUB 12.076 billion (compared to RUB 9.87 billion in 2021 according to the IFRS), EBITDA — by 23.55% and amounted to RUB 3.625 billion (compared to RUB 2.93 billion in 2021, IFRS), net profit — by 25.56% and amounted to RUB 1.695 billion (compared to RUB 1.35 billion in 2021, IFRS), and net profit margin was 14%. The record-breaking results were achieved in the tough environment of 2022 thanks to the effective management and successful growth strategy of the Group.

During the reporting period, sales of the Abrau-Durso premium classic sparkling wines demonstrated positive trends. The Imperial and Brut d’Or Collections show steady growth driven, inter alia, by the increased demand in the HoReCa sector. The leading product line, Russian Sparkling Wine, also continues to increase the volumes of sales. The still wines category also showed high performance, which was 4.4 million of bottles (up 22% compared to the last year).

The significant progress is also being made in the low-alcohol beverages sector, for example, sales of the Abrau Light Collection increased by 45%. The Abrau-Durso Cider Collection continues to rapidly gain popularity in the context of the market-wide trend. Thus, last year Abrau-Durso successfully achieved the planned sales of the traditional ciders already in the first half of the year and sales of the Abrau Cider brand multiplied in 2022 compared to the last year.

The impressive three-fold growth was recorded for the high-margin products, which are strong drinks and non-alcoholic beverages. As for the Abrau-Durso strong drinks range, 7 Herbs Gin was a successful launch with the record high demand recorded already in the first 6 months of sales. The range of non-alcoholic beverages shows high performance primarily due to the active e-commerce development, including on marketplaces. For example, distribution of the natural artesian water has doubled and of the Abrau Junior beverages increased by 19%.

The Abrau-Durso Group’s stable growth is accounted for by own resource base and its systematic expansion. According to the results of 2022, the total investments in this area of focus amounted to RUB 545 million, and additional 230 ha of new vineyards were planted. Increase in the own vineyards and production ramp-up remain the important development areas for Abrau-Durso.

In 2022, the Abrau-Durso wines and the Group itself again received high expert evaluation. For instance, according to the annual Top100Wines rating by Forbes magazine the Abrau-Durso Group won the Winery of the Year title, Imperial Brut Vintage 2018 sparkling wine was awarded a special prize for the best organoleptic, and aged in oak red dry wine Krasnostop Zolotovsky 2018 by Vedernikov Winery, a member of the Abrau-Durso Group, was recognized as the best wine from autochthonous varieties and received the 2nd place in the annual rating.

23 samples of the sparkling and still wines produced by the Abrau-Durso Group have been included in the 10^th anniversary Author’s Guide “Russian Wines” by President of the Union of Sommeliers and Experts of Russia Arthur Sarkisyan. Imperial Vintage Brut 2017 in the volume of 1.5 liters has become the only sparkling wine won the platinum award and in the volume of 0.75 liter — the gold medal.

The Abrau-Durso low-alcohol beverages also continue to receive high ratings at wine tasting competitions. The Abrau-Durso ciders were awarded several prizes at the 2^nd annual festival Moscow Cider Days, particularly, the Abrau-Durso poiret won the first prize.

Last year the Group’s effective management and personnel policy gained separate recognition. CEO of the management company, Abrau-Durso PJSC, Vladimir Maslovskiy ranked first among consumer goods producers in the Top-1000 Russian Managers rating by the Managers Association. The Abrau-Durso Tourism Center ranked among the Top 10 Russia Best Employers in its category according to the HH.ru expert rating.

In 2022, the Group presented new products in all product categories. Brut d’Or Rose and Brut d’Or Riesling were presented in the collection of classic monosort sparkling wines Brut d’Or. Dry Abrau-Durso cider and demi-dry Abrau Cider were added to the low-alcoholic beverages range. 7 Herbs Gin was a new product in the strong drinks segment. The Abrau Vinonade range was presented in the non-alcoholic beverages collection. This product range consists of 6 sparkling soft drinks with various flavors made from grape juice. The Azerbaijani division of the Group presented the still wines made from the autochthonous Madrasa and Bajan shira varieties in the Az Abrau collection and Agdam port wine. Yubileinaya Winery produced its first wines as a member of the Group made from the unique Russian grape varieties Amur Potapenko and Dostoiny.

Boutique Vedernikov Winery, which is a member of the Abrau-Durso Group specialized in production of premium wines made from the autochthonous grape varieties, continues to show high growth rates in sales — +39% in the reporting period. Last year the Winery also presented several new products, such as the wine made from the Russian grape variety Pukhliakovsky, and added a brand new direction — Pet Nats. The vineyards of Vedernikov Winery had a record harvest in 2022.

The key businesses of Abrau-Durso include tourism and gastronomy. Given the air travel disruption in the Krasnodar Krai, the Abrau-Durso Tourism Center managed not only to maintain its leadership in wine tourism, but also to continue its active growth. In 2022, Abrau-Durso became the first Russian winery joined the GWTO (Global Wine Tourism Organization). One of the outcomes of such membership is the International Wine Tourism Forum, which will be held in Abrau-Durso as early as in May 2023. One of the most important events of 2022 was signing of the corporate agreement with Tourism.RF Corporation JSC. Abrau-Durso won the special nomination “Wine in the Vineyard” of Top100Wines for its achievements and contribution to the development of the tourism sector.

The Abrau-Durso Group continues to develop its gastronomic projects and own retail chain. The year of 2022 faced opening of the flagship restaurant 1870 Abrau-Durso at the heart of Moscow, the karaoke bar Abrau Light in Abrau-Durso, and the chain restaurant 1870 Abrau-Durso. During the reporting period, Abrau Durso Wine Atelier opened its third boutique in Moscow and second in Voronezh.

“The past year was very successful for our Group, although extremely difficult. We managed to achieve such impressive results in the turbulent market environment thanks to the right strategy based on the development of the own resource base – vineyards, high quality standards and confidence of consumers and partners in the Abrau-Durso brand that allow us to diversify business and approach the new high profit categories, such as strong drinks and non-alcoholic beverages. Another key asset of Abrau-Durso is our tight-knit team of high-class professionals that was able to show effective management, fast decision-making, and flexibility in the difficult situation of 2022. These are the success factors ensuring the record-breaking results of the company and allowing us to look ahead with confidence”, President of the Abrau-Durso Group Pavel Titov commented on the results of the year.