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 | -916 | 424 |
Indrek Kasela
AS PRFoods
Member of the Management Board
Phone:+372 452 1470
investor@prfoods.ee
www.prfoods.ee
