Abrau-Durso Group Summed Up the Results of 2024

The Abrau-Durso Group, a leader of the Russian sparkling wines market, has summed up its results for 2024 and demonstrated the record-breaking key financial and operating highlights. With the turbulent last year, the Group registered significant growth of sales, revenue, net profit, and EBITDA at the end of the reporting period.

In 12 months of 2024, record 66,862 million bottles were sold in total, 18% up from 2023, of which 66,063 million bottles of own-produced alcohol and non-alcoholic products, which is also 18% up from 2023. The IFRS showed the growth of the Group’s revenue by 26%, reaching the company’s maximum RUB 15,798 billion (compared to RUB 12,525 billion in 2023, IFRS). The net profit increased by 43% and reached RUB 1,837 billion (compared to RUB 1,281 billion in 2023, IFRS). The EBITDA recorded even higher increase — by 51%, hitting the Group’s record level of RUB 4,307 billion (compared to RUB 2,857 billion in 2023, IFRS).

Sparkling wines were sales leaders in the reporting period: classic single-varietal Brut d’Or wines were gaining popularity, while the Abrau Durso Reserve collection recorded   tremendous sales growth by 96% due to distribution expansion throughout the federal and regional retail chains. Russian Sparkling wines showed steady growth. As for the still wines, sales of the Abrau Estates collection made by Yubileinaya Winery more than doubled and the demand for still aged Abrau-Durso wines in PDO category grew considerably.

The product portfolio diversification strategy, which was adopted earlier by the Abrau-Durso Group, has proven its worth. As part of this strategy the spirits, non-alcoholic, and low-alcohol divisions were fully formed. In the non-alcoholic sector two key channels — online marketplaces and federal retail chains — recorded particularly impressive sales results. In the spirits, Abrau-Durso 1870 brandies were a major growth driver. Agdam port wine also explored new sales horizons (+204% on a year-to-year basis).

In 2024, efforts of the Group were highly rated by the leading rating agencies: Analytical Credit Rating Agency (ACRA) assigned A+ (RU) credit rating and Expert RA affirmed similar credit rating at ruA+ with stable outlook. The key positive factors include profit and sales growth, high profitability and geographic diversity. The analysts especially noted the expanded presence of the company’s products, which is available in all Russian regions due to more than 200 contracts signed with the federal and local retail chains and distributors.

In 2024, the Abrau-Durso Group expanded its resource portfolio by planting unprecedented 316 ha of new vineyards, which is 1.6 times more than last year. Therefore, the total area of the Group’s vineyards reached 4.1 thousand ha.

In 2024, the Abrau-Durso Group recorded positive development of the international segment with a focus on the Chinese market. E-commerce sales growth was registered. As part of the strategy for promotion of the Russian wine industry in China the company presented its project The Way of Russian Wine at the 8th International Silk Road Exhibition in Xian. The exhibition was visited by more than 800 thousand people. The initiative brought together Russian leading wineries to jointly promote within China. The Group also successfully presented sparkling and still wines to the visitors of the VIII Russian-Chinese EXPO in Harbin. In addition to its successful initiatives in China, the Abrau-Durso Group discovered a new promising Indian market, setting up contract manufacturing of sparkling beverages on fruit juice under Tsar Collection brand.

In 2024, managers of the Abrau-Durso Group were highly rated by the leading professional ratings: 7 representatives of the company were included in the Top-100 Russian Managers rating published by the Managers Association and President of the Abrau-Durso Group Pavel Titov won the Best Top Manager in the Consumer Goods Production category. Also 5 representatives of the Group’s management were included in the Salt of the Earth. Top Managers of AIC-2024 — a rating of the best managers of the agro-industrial complex, which show the importance of the company in the industry development.

The record-breaking price for the Russian wine at auction was an impressive achievement in last December. It was Krasnostop Zolotovsky by Vedernikov Winery, a member of the Abrau-Durso Group. A lot of two bottles was sold at closed auction for RUB 1.5 million, which is RUB 750 thousand a bottle — an unprecedented amount for the modern Russian winery. The second most expensive lot was two samples of classic sparkling wine millesime from the Abrau-Durso collection of the 1979 harvest. It was sold for RUB 1.25 million (RUB 625 thousand a bottle). These results signify growing interest in Russian collectible wines and prove their potentially high investment attractiveness.

The past year also witnessed remarkable success of the Abrau-Durso Group at the international professional tasting competitions. Abrau Durso Reserve Brut and red wine Tsimlyansky Cherny by Vedernikov Winery won the highest award — triple gold — at Europe Wine & Spirit Awards 2024 in Hamburg. Abrau-Durso sparkling wines were awarded 2 gold medals and Victor Dravigny Brut won the Grand Prix and the Best of Country status at Korean Wine Challenge 2024, a largest wine competition in Korea. Wines by Vedernikov Winery won 3 gold awards at Michelangelo International Wine & Spirits Awards 2024 in the Republic of South Africa. In 2024, wines by the Abrau-Durso Group won in total 82 awards at the Russian and international competitions.

The key releases of the past year include new products of the Abrau-Durso Group member Yubileinaya Winery, which keeps discovering the potential of the unique domestic grape varieties. The Abrau Estates collection of still wines was enriched with the Group’s first fancy orange-style wine made from citron magaracha grape, and red Femme d’Abrau with peony aroma made from Amursky Potapenko grape captured particular attention. A new sample Victor Dravigny Zero Dosage joined the Victor Dravigny collection of classic sparkling wines. In the spirits, the Group extended the Abrau Spirits range by adding traditional Cuban rum Danza del Fuego made in cooperation with Corporación Cuba Ron S.A. The Abrau-Durso distribution portfolio was enlarged by collectible Shirvan 60 brandy based on a collection of rare 60-year-old distillates. A promising novelty in The 7 Collection was grape vodka “7 vines”. New cocktail flavors of Abrau Vinonade — Bellini and Aperitif Spritz — were presented by the Group in the non-alcoholic collection. As part of the long-term cooperation with one of the largest Russian retail chains Magnit a new product was presented in the Sparkling Truffle range — truffle with classic sparkling rose wine Victor Dravigny.

In 2024, gastronomic project 1870 Abrau-Durso kept actively developing: one more chain restaurant was opened in Krasnodar — 7th in the chain and 4th in the Krasnodar Region. The franchise business was also in good progress: the first Abrau Durso Wine Atelier Boutique was opened in Omsk and a new brand space Abrau Club was launched in Gelendzhik.

The tourist business — one of the company’s key growth paths — witnessed remarkable success. In 2024, more than 600 thousand people visited the Abrau-Durso Tourism Center. Annual music festival Light Weekend and yoga and conscious lifestyle festival Ravnovesie were the summer highlights. In 2024, the Abrau-Durso Museum and Historical Complex celebrated its 50^th anniversary and won the Corporate Museums – 2024 National Award in the “Territory Development” category. In 2024, Abrau-Durso resort was recognized by the experts of the reputable Wedding Travel Awards. It was awarded the best Russian resort site for weddings.

“The past year has proven that with the right strategy and strong team high results are achievable even in the challenging economic environment. The Abrau-Durso Group was able to strengthen its market leadership due to the synergy of various businesses, development of own resource portfolio, and focus on the higher margin sales growth. But power of the well-knit team that can transform challenges into opportunities is at the core of success”, Abrau-Durso PJSC CEO Elena Zaritskaya commented on the results.