Tallinn, Estonia, 2018-02-24 23:10 CET (GLOBE NEWSWIRE) --
Overview of the economic activities
MANAGEMENT COMMENTARY
PRFoods Q4 2017 is the first when new group's full term consolidated numbers
are available. It is a pleasure to see that then new strategy of PRFoods to
become high value added and vertically integrated International fish processing
company, has been fully justified. Strong growth in sales and profitability
demonstrate it clearly. Both the existing and newly added PRFoods subsidiaries
have performed exceptionally, thanks to good work and effort by our local
management teams and entire staff.
PRFoods Q4 revenues were 32 million euros, growing year-on-year by 89.3%. Gross
margin increased 3.4 times and was 6.6 million euros. EBITDA from operations
(excluding biomass) grew by 3.2 times and was 4.3 million euros. EBITDA growth
was 4.5 times and amounted 1.6 million euros. Net profit was 1.2 million euros,
increase by 3.5 times year-on-year. We are happy to see that gross margin
growth on year-on-year was 80.5%, Q4 gross margins was 20.6%.
Sales and profitability were particularly boosted by strong sales in Finnish
market, as a result of very successful integration between Trio Trading Ab,
Heimon Kala Oy and Vettel OÜ. Business was helped by substantial decrease in
raw material prices, as compared to extraordinarily high prices in Q4 2016. It
is very positive to see that sales to export markets has grown significantly.
PRFoods 12 months unaudited consolidated sales were 73.6 million euros, growing
55.2% on annual basis. EBITDA from operations increased 7 times and was 5.4
million euros. EBITDA was 3.6 million euros, growing by 0.95 million euros
year-on-year. Net profit grew 2 times and amounted to 1.4 million euros.
Our fish farming performed very well, the biggest impact came from drop in
global salmon prices. The difference between operational EBITDA and EBITDA is
the biomass revaluation. At the end of 2017 the biomass revaluation amounted to
-1.5 million euros, compared to +2.3 million in 2016. Biomass revaluation is
standard practice and is impacted mainly by three factors: global fish prices
at the end of the period, annual biomass growth in tons annual extraction of
fish from farms. Although in tons our biomass increased, in value terms the
biomass decreased due to drop in rainbow trout prices by 19.5% as of
31.12.2017. Rainbow trout prices were 6.0 euros per kilo compared to 7.4 euros
at the end of 2016. Also, salmon prices decreased in Q4 by 29.9% year-on-year
and by 39.2 if compared to 31.12.2016. Both trends are very positive for
PRFoods, as over 2/3 of our raw material is purchased on open market. Raw
material price drop boosts overall profitability of our business. The value of
biomass at the end of the year was 5.6 million euros and average price was 3.87
EUR/kg.
PRFoods balance sheet continues to be strong. Investment loans taken to
purchase subsidiaries have resulted in positive net debt. Debt to EBITDA is
3.1. Cash balance increased to 6.5 million euros and net debt of PRFoods is
16.6 million euros (including 2.6 million euros of minority buyout option
liabilities, which the management deems to be of low probability in short
term).
PRFoods employs 408 people as of end of the year in Estonia, Finland, Sweden
and United Kingdom
PRFoods shares rose by 63.2% on annual basis, being one of the best performing
stocks on NASDAQ Tallinn. The liquidity of share trading increased nearly 2
times.
Current financial year was prolonged until 30.06.2018 and in the future PRFoods
financial year is from July to June.
In summary we can say that 2017 was very successful for PRFoods. Big challenges
wait us ahead, to turn PRFoods subsidiaries into even more globally competitive
businesses. Strategic directions of group are increasing profitability,
sustainable and environmentally friendly production, innovation in product
development and marketing, development of our staff's professionalism and
working conditions.
The 4th quarter of 2017 compared to the 4th quarter of 2016
-- Unaudited consolidated revenue 31.99 million euros, increase +15.09 million
euros, i.e. +89.3%.
-- Gross margin 20.6%, increase +9.2 percentage points, i.e. +80.5%.
-- Negative impact from revaluation of biological assets -2.73 million euros
(Q4 2016: negative effect -1.10 million euros).
-- EBITDA from operations +4.30 million euros, increase +3.25 million euros.
-- EBITDA +1.57 million euros, increase +2.02 million euros.
-- The operating profit +1.06 million euros, increase 1.82 million euros.
-- Net profit +1.23 million euros, increase +1.72 million.
The 12 months of 2017 compared to the 12 months of 2016
-- Unaudited consolidated revenue 73.61 million euros, increase +26.18 million
euros, i.e. +55.2%.
-- Gross margin 14.4%, increase +5.9 percentage points.
-- N
egative impact from revaluation of biological assets -1.51 million euros
(12 months 2016: positive impact of
-- +2.26 million euros).
-- Effect of one-offs to the result -0.31 million euros (12 month 2016:
negative influence -0.40 million euros).
-- EBITDA from operations +5.37 million euros, increase +4.62 million euros.
-- EBITDA +3.56 million euros, increase 0.95 million euros.
-- The operating profit +2.01 million euros, increase 0.63 million euros.
-- Net profit +1.42 million euros, increase 0.70 million euros.
KEY RATIOS
Income Q1 Q2 Q3 Q4 12m Q1 Q2 Q3 Q4
12m
State 2017 2017 2017 2017 2017 2016 2016 2016 2016
2016
ment,
EUR
mln
--------------------------------------------------------------------------------
------
Sales 10.6 13.1 18.0 32.0 73.6 10.2 9.8 10.5 16.9
47.4
--------------------------------------------------------------------------------
------
Gross 0.5 1.0 2.5 6.6 10.6 1.0 0.6 0.5 1.9
4.0
profi
t
--------------------------------------------------------------------------------
------
EBITDA -0.3 0.1 1.2 4.3 5.4 0.2 -0.3 -0.3 1.1
0.8
from
opera
tions
--------------------------------------------------------------------------------
------
EBITDA -0.6 0.3 2.2 1.6 3.6 -0.2 0.7 2.6 -0.4
2.6
--------------------------------------------------------------------------------
------
EBIT -0.9 0.03 1.8 1.1 2.0 -0.5 0.3 2.3 -0.8
1.4
--------------------------------------------------------------------------------
------
EBT -0.9 -0.1 1.4 0.8 1.2 -0.6 0.2 2.2 -0.8
1.1
--------------------------------------------------------------------------------
------
Net -0.8 -0.1 1.2 1.2 1.4 -0.5 0.04 1.6 -0.5
0.7
profi
t
(-los
s)
--------------------------------------------------------------------------------
------
Gross 5.0% 7.5% 13.7% 20.6% 14.4% 9.5% 6.3% 4.7% 11.4%
8.5%
margi
n
--------------------------------------------------------------------------------
------
Operat -2.7% 1.0% 6.9% 13.4% 7.3% 2.1% -2.6% -2.6% 6.2%
1.6%
ional
EBITD
A
margi
n
--------------------------------------------------------------------------------
------
EBITDA -5.3% 2.6% 12.3% 4.9% 4.8% -2.2% 6.8% 24.9% -2.7%
5.5%
margi
n
--------------------------------------------------------------------------------
------
EBIT -8.3% 0.2% 9.9% 3.3% 2.7% -5.2% 3.6% 22.0% -4.5%
2.9%
margi
n
--------------------------------------------------------------------------------
------
EBT -8.5% -0.4% 7.6% 2.5% 1.6% -5.5% 2.3% 21.3% -4.5%
2.4%
margi
n
--------------------------------------------------------------------------------
------
Net -7.9% -1.0% 6.4% 3.9% 1.9% -4.5% 0.4% 15.5% -2.9%
1.5%
margi
n
--------------------------------------------------------------------------------
------
Operat 11.2% 9.5% 10.9% 9.2% 9.9% 10.5% 12.7% 11.2% 7.7%
10.1%
ing
expen
se
ratio
--------------------------------------------------------------------------------
------
Balanc 31.03.2017 30.06.2017 30.09.2017 31.12.2017 31.03.2016 30.06.2016
30.09.2016 31.12.2016
e
Sheet
, EUR
mln
--------------------------------------------------------------------------------
----------------------
Net 1.6 1.0 16.7 16.6 -3.1 -1.4
1.3 0.3
debt
--------------------------------------------------------------------------------
----------------------
Equity 22.8 22.7 23.4 24.8 22.7 22.7
24.3 23.8
--------------------------------------------------------------------------------
----------------------
Workin 11.5 11.5 5.1 5.3 11.0 11.2
13.3 12.4
g
capit
al
--------------------------------------------------------------------------------
----------------------
Assets 33.3 33.5 66.3 67.0 28.6 29.3
34.4 35.1
--------------------------------------------------------------------------------
----------------------
Liquid 2.4 2.3 1.2 1.2 3.7 3.4
2.7 2.4
ity
ratio
--------------------------------------------------------------------------------
----------------------
Equity 68.5% 67.8% 35.9% 37.1% 79.4% 77.6%
70.7% 67.9%
ratio
--------------------------------------------------------------------------------
----------------------
Gearin 6.4% 4.1% 41.3% 40.0% -15.7% -6.7%
5.2% 1.2%
g
ratio
--------------------------------------------------------------------------------
----------------------
Net 6.4 1.6 7.9 3.1 -1.1 -0.7
1.2 0.4
debt-
to-EBI
TDA
--------------------------------------------------------------------------------
----------------------
ROE 1.5% 0.7% -1.3% 5.8% 4.5% 3.6%
6.7% 3.0%
--------------------------------------------------------------------------------
----------------------
ROA 1.1% 0.5% -0.6% 2.8% 3.7% 2.9%
5.2% 2.2%
--------------------------------------------------------------------------------
----------------------
Consolidated statement of financial position
EUR '000 31.12.2017 31.12.2016
-------------------------------------------------------
ASSETS
-------------------------------------------------------
Cash and cash equivalents 6,491 4,374
-------------------------------------------------------
Receivables and prepayments 8,982 4,056
-------------------------------------------------------
Inventories 11,747 5,393
-------------------------------------------------------
Biological assets 5,566 7,584
-------------------------------------------------------
Total current assets 32,786 21,407
-------------------------------------------------------
-------------------------------------------------------
Deferred income tax 222 230
-------------------------------------------------------
Long-term financial investments 102 103
-------------------------------------------------------
Tangible fixed assets 11,425 7,285
-------------------------------------------------------
Intangible assets 22,450 6,031
-------------------------------------------------------
Total non-current assets 34,199 13,649
-------------------------------------------------------
TOTAL ASSETS 66,985 35,056
-------------------------------------------------------
-------------------------------------------------------
EQUITY AND LIABILITIES
-------------------------------------------------------
Loans and borrowings 10,105 3,716
-------------------------------------------------------
Payables 17,115 5,131
-------------------------------------------------------
Government grants 306 162
-------------------------------------------------------
Total current liabilities 27,526 9,009
-------------------------------------------------------
-------------------------------------------------------
Loans and borrowings 12,957 940
-------------------------------------------------------
Deferred tax liabilities 523 747
-------------------------------------------------------
Government grants 1,144 551
-------------------------------------------------------
Total non-current liabilities 14,624 2,238
-------------------------------------------------------
TOTAL LIABILITIES 42,150 11,247
-------------------------------------------------------
-------------------------------------------------------
Share capital 7,737 7,737
-------------------------------------------------------
Share premium 14,007 14,007
-------------------------------------------------------
Treasury shares -390 -256
-------------------------------------------------------
Statutory capital reserve 48 12
-------------------------------------------------------
Currency translation reserve 173 428
-------------------------------------------------------
Retained profit (-loss) 3,185 1,881
-------------------------------------------------------
Equity attributable to parent 24,760 23,809
-------------------------------------------------------
Non-controlling interest 75 0
-------------------------------------------------------
TOTAL EQUITY 24,835 23,809
-------------------------------------------------------
TOTAL EQUITY AND LIABILITIES 66,985 35,056
-------------------------------------------------------
Consolidated statement of profit or loss and other comprehensive income
EUR '000 Q4 2017 Q4 2016 12m 12m
2017 2016
--------------------------------------------------------------------------------
Sales 31,992 16,903 73,610 47,429
--------------------------------------------------------------------------------
Cost of goods sold -25,395 -14,972 -63,034 -43,410
--------------------------------------------------------------------------------
Gross profit 6,597 1,931 10,576 4,019
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Operating expenses -2,934 -1,297 -7,306 -4,785
--------------------------------------------------------------------------------
Selling and distribution expenses -2,095 -964 -5,150 -3,346
--------------------------------------------------------------------------------
Administrative expenses -839 -333 -2,156 -1,439
--------------------------------------------------------------------------------
Other income/expenses 124 -291 240 -118
--------------------------------------------------------------------------------
Fair value adjustment on biological assets -2,727 -1,101 -1,505 2,263
--------------------------------------------------------------------------------
Operating profit (-loss) 1,060 -758 2,005 1,379
--------------------------------------------------------------------------------
Financial income 2 1 4 2
--------------------------------------------------------------------------------
Financial expenses -262 -9 -802 -240
--------------------------------------------------------------------------------
Profit (-loss) before tax 800 -766 1,207 1,141
--------------------------------------------------------------------------------
Income tax 432 274 208 -426
--------------------------------------------------------------------------------
Net profit (-loss) for the period 1,232 -492 1,415 715
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Net profit (-loss) attributable to:
--------------------------------------------------------------------------------
Owners of the company 1,157 -492 1,340 715
--------------------------------------------------------------------------------
Non-controlling interests 75 0 75 0
--------------------------------------------------------------------------------
Total net profit (-loss) 1,232 -492 1,415 715
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other comprehensive income (-loss) that may
subsequently be classified to profit or
loss:
--------------------------------------------------------------------------------
Foreign currency translation differences -171 8 -255 -43
--------------------------------------------------------------------------------
Total comprehensive income (-expense) 1,061 -484 1,160 672
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total comprehensive income (-expense)
attributable to:
--------------------------------------------------------------------------------
Owners of the Company 986 -484 1,085 672
--------------------------------------------------------------------------------
Non-controlling interests 75 0 75 0
--------------------------------------------------------------------------------
Total comprehensive income (-expense) for 1,061 -484 1,160 672
the period
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Profit (-loss) per share (EUR) 0.03 -0.01 0.03 0.02
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Diluted profit (-loss) per share (EUR) 0.03 -0.01 0.03 0.02
--------------------------------------------------------------------------------
Indrek Kasela
AS PRFoods
Member of the Management Board
Phone: +372 452 1470
investor@prfoods.ee
www.prfoods.ee
Attachment:
https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=665519PRFoods: PRF: Consolidated Unaudited Interim Report of AS PRFoods for 4th quarter and 12 months of 2017
© 2018 GlobeNewswire
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