Bodegas Riojanas Launches €8 Million Share Issue After Reporting Nearly €2 Million Net Loss

Bodegas Riojanas, a historic winery based in Cenicero, La Rioja, has received approval from its shareholders to increase its share capital by up to eight million euros. The decision was made during an extraordinary general meeting held this week and was communicated to the Spanish National Securities Market Commission (CNMV). The capital increase will be carried out through the issuance and circulation of up to 10,666,666 new ordinary shares. These shares will be of the same class and nominal value as those currently in circulation, and will be represented by book entries.

The company’s board of directors will determine the final price of the new shares and set the terms for existing shareholders’ preferential subscription rights. The board is also authorized to issue convertible bonds or warrants within the maximum limit of eight million euros. The new shares are expected to be listed on the stock exchanges of Madrid, Barcelona, Bilbao, and Valencia, as well as included in Spain’s electronic trading system (SIBE).

This move comes as Bodegas Riojanas continues a process of financial strengthening. The company has faced a challenging period marked by declining sales and profitability. In the first half of 2025, Bodegas Riojanas reported a net loss of 129,000 euros, compared to a profit of 1,000 euros in the same period last year. Operating income fell by 33 percent to 441,000 euros, while total sales dropped by 10 percent to 5.08 million euros.

For the full year 2024, the company posted a consolidated turnover of 16.09 million euros, down 7.3 percent from the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) fell sharply to 896,000 euros from 2.61 million euros in 2023. Operating losses reached 960,000 euros compared to a positive result of 750,000 euros in the previous year. Net losses totaled nearly two million euros after posting a profit of 140,000 euros in 2023.

The company attributes these results partly to weak demand in global wine markets during the first half of this year. Despite these challenges, Bodegas Riojanas highlighted growth in international sales, with export revenues rising by 11 percent over the period.

In December last year, Bodegas Riojanas announced it had refinanced 26.54 million euros in debt as part of a restructuring plan supported by 99 percent of its banking creditors. This agreement included a new payment schedule and a gradual reduction in credit limits, with final maturities set for 2028. The refinancing also involved converting some short-term credit into longer-term working capital loans totaling nearly five million euros.

The company says that the capital increase is intended to support its strategic plan and reinforce business sustainability amid upcoming short- and medium-term debt maturities. Management believes that strengthening its financial position will provide greater stability and operational flexibility as it navigates ongoing market challenges.

Bodegas Riojanas is one of Spain’s oldest wineries and has been operating since the late nineteenth century. It produces wines under several well-known labels and exports to numerous international markets. The current capital increase is seen as a key step in ensuring its long-term viability and supporting future growth initiatives both at home and abroad.