Consolidated Unaudited Interim Report of AS PRFoods for the 1nd quarter and 3 months of 2023/2024 financial year
November 30, 2023 at 12:30 am EST
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Consolidated Unaudited Interim Report of AS PRFoods for the 1nd quarter and 3 months of 2023/2024 financial year
MANAGEMENT COMMENTARY
1st Quarter of current financial year started with good results from UK, fish farming season in full swing and Estonian operations suffering from discontinuation of sales to Finland due to anti-competition situation. Q1 is one of quieter seasons for us as the seasonality plays strong role in Q2 and Q4. Sales were down 26%, EBITDA was less only by 140,000 EUR. More importantly our operating loss decreased by 50%. In times like these even incremental but steady improvements will bring about results in long term. The operations have been massively streamlined, cost efficiency at its best and we know that once the exclusivity period ends and we can restart exports to Finland, the profitability of Estonian business is going to be substantially improved. Net loss was 720,000 euros compared to 870,000 profit last year, but last year result was affected by one-off profit from sale of Swedish business which resulted in 1,7 million euro financial income.
High inflation and consumers behaviour is affecting all the food producers, but overall we do not see big decline in demand. In contrary since the retail prices of fish products have come down, we expect very healthy demand for Christmas season. Stability is more important than volatility, both in sales and operations and the foundation is now much stronger than last years. We are smaller, but more efficient and once the artificial barriers to sales, like exclusivity in Finland, ends, we will demonstrate much better results.
KEY RATIOS
INCOME STATEMENT
mln EUR unless indicated otherwise
1Q 2022/2023
2022/2023
1Q 2022/2023
2021/20233
Sales
3,4
19,6
4,6
42,1
Gross profit
0,1
3,6
0,5
3,1
EBITDA from operations
-0,46
0,3
-0,3
-1,7
EBITDA
-0,11
0,3
-0,5
-1,9
EBIT
-0,4
-1,0
-0,8
-4,2
EBT
-0,7
0,4
0,9
-8,2
Net profit (loss)
-0,7
0,3
0,9
-8,1
Gross margin
3,5%
18,3%
11,1%
7,4%
Operational EBITDA margin
-13,6%
1,5%
-6,9%
-4,1%
EBITDA margin
-3,1%
1,5%
-10,6%
-5,1%
EBIT margin
-11,7%
-5,1%
-17,7%
-9,9%
EBT margin
-20,7%
2,0%
-19,0%
-19,5%
Net margin
-21,1%
1,5%
18,8%
-19,4%
Operating expense ratio
-25,4%
24,0%
-24,2%
17,1%
BALANCE SHEET
mln EUR unless indicated otherwise
30.09.2023
30.06.2023
30.09.2022
30.06.2022
Net debt
17,0
16,7
18,8
24,7
Equity
7,4
8,3
8,0
8,1
Working capital
0,2
0,0
0,7
-3,2
Assets
29,3
30,2
33,1
38,9
Liquidity ratio
1,0x
1,0x
1,1x
0,7x
Equity ratio
25,2%
27,4%
24,1%
20,7%
Gearing ratio
69,7%
66,9%
70,2%
75,4%
Debt to total assets
0,8x
0,7x
0,8x
0,8x
Net debt to operating EBITDA
21,4x
55,8x
-11,7x
-14,5x
ROE
-9,2%
4,1%
28,1%
-68,5%
ROA
-2,4%
1,0%
7,2%
-17,3%
Consolidated Statement of Financial Position
EUR '000
30.09.2023
30.09.2022
30.06.2023
ASSETS
Cash and cash equivalents
199
345
394
Receivables and prepayments
1 330
4 811
2 118
Inventories
1 909
2 102
1 861
Biological assets
1 130
955
772
Total current assets
4 567
8 213
5 145
Long-term financial investments
382
304
381
Tangible assets
6 364
7 169
6 563
Intangible assets
17 954
17 400
18 157
Total non-current assets
24 700
24 873
25 101
TOTAL ASSETS
26 267
33 086
30 246
EQUITY AND LIABILITIES
Interest-bearing liabilities
1 827
3 562
2 111
Payables and prepayments
2 947
3 965
3 035
Total current liabilities
4 774
7 527
5 146
Interest-bearing liabilities
15 354
15 592
15 024
Deferred tax liabilities
1 454
1 644
1 466
Government grants
309
342
318
Total non-current liabilities
17 117
17 578
16 807
TOTAL LIABILITIES
21 891
25 105
21 953
Share capital
7 737
7 737
7 737
Share premium
14 007
14 007
14 007
Treasury shares
-390
-390
-390
Statutory capital reserve
51
51
51
Currency translation differences
412
394
608
Retained profit (loss)
-14 655
-14 043
-13 981
Equity attributable to parent
7163
7 757
8 032
Non-controlling interest
213
223
259
TOTAL EQUITY
7 376
7 980
8 292
TOTAL EQUITY AND LIABILITIES
29 267
33 085
30 245
Consolidated Statement of Profit or Loss And Other Comprehensive Income
EUR '000
3m 2023/2024
3m 2023/2024
Revenue
3 411
4 610
Cost of goods sold
-3 290
-4 097
Gross profit
121
514
Operating expenses
-867
-1 114
Selling and distribution expenses
-438
-643
Administrative expenses
-429
-471
Other income / expense
-9
-47
Fair value adjustment on biological assets
358
-170
Operating profit (loss)
-398
-170
Financial income / expenses
-308
1692
Profit (Loss) before tax
-705
874
Income tax
-14
-6
Net profit (loss) for the period
-719
868
Net profit (loss) attributable to:
Owners of the Parent Company
-674
878
Non-controlling interests
-46
-8
Total net profit (loss) for the period
-720
869
Other comprehensive income (loss) that may subsequently be classified to profit or loss:
Foreign currency translation differences
-196
-445
Total comprehensive income (expense)
-916
424
Total comprehensive income (expense) attributable to:
Owners of the Parent Company
-870
433
Non-controlling interests
-46
-8
Total comprehensive income (expense) for the period
PRFoods AS, formerly Premia Foods AS, is an Estonia-based company engaged in the food industry sector. The Company operates through three business segments: Fish segment covers fish farming, production and wholesale of fish and fish products; Ice cream segment is involved in the production and wholesale of ice cream, and Frozen food segment covers wholesale of frozen goods. The Company markets its products domestically, as well as abroad in over 35 countries in Europe, North and South America, and Asia. The Companyâs wholly owned subsidiaries include Saaremere Kala AS, Heimon Kala OU, Heimon Kala Oy, Overumans Fisk AB, JRJ & PRF Limited, John Ross Jr. (Aberdeen) Limited, Coln Valley Smokery Limited, and Redstorm OU. The Company also holds 20% shares in AS Toidu- ja Fermentatsioonitehnoloogia Arenduskeskus.