MANAGEMENT COMMENTARY
PRFoods' second quarter of the financial year continued to take place in a challenging economic environment, characterized by weak consumption, price sensitivity, and increased cost pressure. This has particularly affected the Group's operations in Estonia and nearby markets. At the same time, management has remained focused on core activities, cost control, and strengthening the financial structure.
In the second quarter of the financial year, the Group's revenue amounted to EUR 5.1 million, decreasing by EUR 1.7 million, or 25%, compared to the same period last year. The decline in revenue was mainly due to lower sales volumes in the Estonian and Finnish markets. Quarterly gross profit was EUR 1.0 million, down 43% year-on-year, reflecting lower production volumes and price pressure.
EBITDA in the second quarter was EUR 0.2 million, below the EUR 0.6 million recorded in the previous financial year. Depreciation expenses remained stable, and operating profit was close to zero, compared to an operating profit of EUR 0.4 million in the previous financial year. The net loss for the second quarter amounted to EUR 0.7 million, compared to a net loss of EUR 0.1 million in the previous financial year.
In the first half of the year, the Group's revenue reached EUR 8.7 million, decreasing by EUR 2.7 million, or 23%, compared to the same period of the previous financial year. Gross profit for the six-month period totalled EUR 1.7 million, which is 34% lower than in the previous financial year. EBITDA for the six months amounted to EUR -0.1 million, compared to a positive EUR 0.7 million in the previous financial year. The operating loss amounted to EUR 0.3 million and the net loss to EUR 1.5 million, significantly affected by increased financial expenses related to the restructuring of debt obligations in the previous financial year and lower operating volumes.
Geographically, the Group's sales were mainly concentrated in the United Kingdom market, where six-month revenue amounted to EUR 7.7 million, representing 87.7% of the Group's total revenue. Compared to the previous financial year, sales in the United Kingdom remained essentially stable. Revenue in the Estonian market declined to EUR 1.0 million during the same period, decreasing by EUR 2.5 million, or more than 70%, clearly reflecting weak consumption in Estonia and nearby markets and pressure in the retail sector.
We are entering the third quarter in continued uncertain market conditions, and a recovery in consumption is not yet visible either in Estonia or in nearby markets. In this environment, management's priorities are further improving efficiency, controlling the cost base, and managing financial obligations. Activities already initiated to strengthen the Group's capital structure and long-term sustainability will also be continued.
KEY RATIOS
INCOME STATEMENT
| mln EUR, unless indicated otherwise | 2Q 2025/2026 | 2024/2025 | 2Q 2024/2025 | 2023/2024 |
| Sales | 5.1 | 18.8 | 6.8 | 17.1 |
| Gross profit | 1.0 | 4.0 | 1.7 | 3.2 |
| EBITDA | 0.1 | 0.1 | 0.6 | -0.3 |
| EBIT | 0.0 | -0.6 | 0.4 | -3.3 |
| EBT | -1.4 | 7.6 | 0.1 | -4.6 |
| Net profit (-loss) | -0.7 | 7.3 | -0.1 | -4.7 |
| Gross margin | 18.6% | 21.2% | 25.0% | 18.7% |
| EBITDA margin | 1.1% | 0.6% | 10.3% | -2.0% |
| EBIT margin | -0.4% | -3.3% | 5.9% | -19.4% |
| EBT margin | -28.0% | 40.4% | 1.5% | -26.9% |
| Net margin | -13.6% | 39.1% | -1.5% | -27.3% |
| Operating expense ratio | -23.1% | 24.0% | -18.3% | -27.1% |
BALANCE SHEET
| mln EUR, unless indicated otherwise | 31.12.2025 | 30.06.2025 | 31.12.2024 | 30.06.2024 |
| Net debt | 8.2 | 6.2 | 13.9 | 14.3 |
| Equity | 9.1 | 10.5 | 2.7 | 3.2 |
| Working capital | 0.8 | 1.2 | -9.3 | -9.2 |
| Assets | 21.3 | 20.2 | 23.2 | 21.9 |
| Liquidity ratio | 1.2 | 1.5x | 0.4 | 0.3x |
| Equity ratio | 42.8% | 52.0% | 11.8% | 14.6% |
| Gearing ratio | 47.3% | 37.0% | 83.6% | 81.8% |
| Debt to total assets | 0.6x | 0.5x | 0.9x | 0.9x |
| Net debt to operating EBITDA | -12x | 54.3x | 35x | -42.5x |
| ROE | 104.5% | 107.0% | -173.3% | -81.4% |
| ROA | 27.9% | 34.8% | -22.7% | -17.9% |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR '000 | 31.12.2025 | 30.06.2025 |
| ASSETS | ||
| Cash and cash equivalents | 228 | 305 |
| Trade and other receivables | 2,559 | 1 546 |
| Prepayments | 309 | 182 |
| Inventories | 1,695 | 1 656 |
| Total current assets | 4,791 | 3 689 |
| Long-term financial investments | 3,417 | 3 595 |
| Tangible assets | 13,084 | 12 956 |
| Intangible assets | 16,501 | 16 552 |
| Total non-current assets | 21,292 | 20 240 |
| TOTAL ASSETS | ||
| EQUITY AND LIABILITIES | 1,825 | 971 |
| Interest-bearing liabilities | 2,144 | 1 563 |
| Trade and other payables | 3,969 | 2 534 |
| Total current liabilities | ||
| 6,575 | 5 514 | |
| Interest-bearing liabilities | 30 | 30 |
| Deferred tax liabilities | 1,407 | 1 421 |
| Government grants | 187 | 213 |
| Total non-current liabilities | 8,199 | 7 178 |
| TOTAL LIABILITIES | 12,168 | 9 713 |
| Share capital | 7,737 | 7 737 |
| Share premium | 14,007 | 14 007 |
| Treasury shares | -390 | -390 |
| Statutory capital reserve | 418 | 51 |
| Currency translation differences | 570 | 451 |
| Retained profit (loss) | -13,218 | -11 327 |
| TOTAL EQUITY | 9,122 | 10 528 |
| TOTAL EQUITY AND LIABILITIES | 21,292 | 20 240 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| EUR '000 | 2Q 2025/2026 | Q2 2024/2025 | 6m 2025/2026 | 6m 2024/2025 |
| Revenue | 5,108 | 6,793 | 8,740 | 11,414 |
| Cost of goods sold | -4,155 | -5,135 | -7,067 | -8,882 |
| Gross profit | 953 | 1,658 | 1,673 | 2,532 |
| Operating expenses | -1,001 | -1,241 | -2,021 | -2,149 |
| Selling and distribution expenses | -608 | -791 | -1,253 | -1,403 |
| Administrative expenses | -393 | -451 | -768 | -747 |
| Other income / expense | 27 | 3 | 36 | 0 |
| Fair value adjustment on biological assets | 0 | 0 | 0 | 0 |
| Operating profit (loss) | -22 | 419 | -312 | 382 |
| Financial income / expenses | -597 | -360 | -1,121 | -625 |
| Profit (Loss) before tax | -619 | 59 | -1,433 | -243 |
| Income tax | -77 | -132 | -90 | -170 |
| Net profit (loss) for the period | -696 | -73 | -1,522 | -413 |
| Net profit (loss) attributable to: | ||||
| Owners of the Parent Company | -696 | -74 | -1,522 | -413 |
| Total net profit (loss) for the period | -696 | -74 | -1,522 | -413 |
| Other comprehensive income (loss) that may subsequently be classified to profit or loss: | ||||
| Foreign currency translation differences | 1 | 0 | 119 | -52 |
| Total comprehensive income (expense) | -695 | -74 | -1,403 | -465 |
| Total comprehensive income (expense) attributable to: | ||||
| Owners of the Parent Company | -695 | -74 | -1,403 | -465 |
| Total comprehensive income (expense) for the period | -695 | -74 | -1,403 | -465 |
| Profit (Loss) per share (EUR) | -0.02 | -0.00 | -0.04 | -0.01 |
| Diluted profit (loss) per share (EUR) | -0.02 | -0.00 | -0.03 | -0.01 |
Kristjan Kotkas Timo Pärn
Member of the Management Board Member of the Management Board
investor@prfoods.ee
www.prfoods.ee
