Tallinn, Estonia, 2015-11-13 14:43 CET (GLOBE NEWSWIRE) --
Overview of the Economic Activities
MANAGEMENT COMMENTARY
PRFoods 9 months and Q3 results have been very positive both in terms of sales but foremost for the growth of profitability (2014 results were affected by one-off income from compensation received from Swedish authorities). The drivers behind the growth in profitability are the changes in sales and production strategy initiated in the beginning of the year and improvement in synergies between various production units, starting to show their expected outcomes. In the end of last quarter we began an important co-operation in fish roe exports for Japanese market, where we anticipate further growth next year. The price of raw fish continues to decline (while simultaneously affecting negatively the results of our own farming business). The well executed strategy concentrating foremost on margin improvement in Finland, our main market, has given as better results compared to our competitors. Administrative and labour costs continue to decrease partly due to sale of ice-cream and frozen food business, but also thanks to efficiency gains. PRFoods teams in Estonia, Finland and Sweden have done exemplary job. The management of PRFoods is optimistic about the 2015 budget targets (Sales of 44.2 million euros and EBITDA from operations (before biological assets revaluation) of 2.3 million euros). PRFoods continues to be one the fastest growing and most profitable fish processing companies in the region.
UNAUDITED FINANCIAL RESULTS OF AS PRFOODS, THE 3RD QUARTER OF 2015 COMPARED TO THE 3RD QUARTER OF 2014
For the purpose of comparison continuing operations income statement data for Q3 2014 has been adjusted.
- Unaudited consolidated revenue 11.4 million euros, increase 13.1%, i.e. EUR 1.3 million euros.
- Gross margin 14.5%, increase 2.3 percentage points.
- The positive effect of revaluation of biological assets 0.3 million euros (Q3 2014: 0.4 million euros).
- EBITDA from business operations 0.7 million euros, increase 0.4 million euros, i.e. 118.8%.
- EBITDA 1.1 million euros, increase 0.3 million euros, i.e. 48.7%.
- EBIT 0.8 million euros, increase 0.3 million euros, i.e. 79.4%.
- Net profit 0.7 million euros, increase 0.6 million euros, i.e. 466.4%.
UNAUDITED FINANCIAL RESULTS OF AS PRFOODS, 9 MONTHS OF 2015 COMPARED TO 9 MONTHS OF 2014
- Unaudited consolidated revenue 33.1 million euros, increase 5.0%, i.e. 1.6 million euros.
- Gross margin 12.6%, increase 1.2 percentage points.
- The negative effect of revaluation of biological assets 0.5 million euros (9 months 2014: 0.2 million euros).
- EBITDA from business operations 1.5 million euros, increase 0.8 million euros, i.e. 116.8%.
- EBITDA 1.0 million euros, decrease -0.2 million euros, i.e. -14.8%*.
- EBIT 0.2 million euros, decrease -0.2 million euros, i.e. -53.8%.
- Net profit 0.4 million euros, increase 0.7 million euros, i.e. 297.3%.
* Negative effect for the comparison data of EBITDA, EBIT and net profit is caused by the reimbursement of a claim in the amount of 751 thousand euros received in June 2014 from the Swedish Board of Agriculture, recorded in the income statement of Q2 2014 on line “Other business incomes/costs”.
KEY RATIOS
| Profit & Loss, EUR mln | Q3 2015 | 9m 2015 | Q3 2014 | 9m 2014 |
| Sales | 11.4 | 33.1 | 10.0 | 31.5 |
| Gross profit | 1.6 | 4.2 | 1.2 | 3.6 |
| EBITDA from operations | 0.7 | 1.5 | 0.3 | 0.7 |
| EBITDA | 1.1 | 1.0 | 0.7 | 1.2 |
| EBIT | 0.8 | 0.2 | 0.4 | 0.3 |
| EBT | 0.8 | 0.3 | 0.2 | -0.2 |
| Net profit (-loss) | 0.7 | 0.4 | 0.1 | -0.2 |
| Gross margin | 14.5% | 12.6% | 12.2% | 11.4% |
| Operational EBITDA margin | 6.5% | 4.6% | 3.4% | 2.2% |
| EBITDA margin | 9.4% | 3.0% | 7.1% | 3.8% |
| EBIT margin | 6.8% | 0.5% | 4.3% | 1.1% |
| EBT margin | 6.6% | 0.9% | 2.0% | -0.6% |
| Net margin | 6.1% | 1.3% | 1.2% | -0.7% |
| Operating expense ratio | 11.9% | 11.5% | 13.2% | 12.8% |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR '000 | 30/09/2015 | 31/12/2014 |
| ASSETS | ||
| Cash and cash equivalents | 6,054 | 3,330 |
| Receivables and prepayments | 7,050 | 12,014 |
| Inventories | 5,940 | 6,563 |
| Biological assets | 7,247 | 5,583 |
| Total current assets | 26,291 | 27,490 |
| Deferred income tax | 103 | 103 |
| Long-term financial investments | 161 | 134 |
| Tangible fixed assets | 7,401 | 6,484 |
| Intangible assets | 6,148 | 6,218 |
| Total non-current assets | 13,813 | 12,939 |
| TOTAL ASSETS | 40,104 | 40,429 |
| EQUITY AND LIABILITIES | ||
| Loans and borrowings | 216 | 198 |
| Payables | 4,057 | 4,493 |
| Total current liabilities | 4,273 | 4,691 |
| Loans and borrowings | 610 | 555 |
| Deferred tax liabilities | 328 | 457 |
| Government grants | 919 | 1,054 |
| Total non-current liabilities | 1,857 | 2,066 |
| TOTAL LIABILITIES | 6,130 | 6,757 |
| Share capital | 19,342 | 19,342 |
| Share premium | 16,026 | 16,026 |
| Treasury shares | -255 | -117 |
| Statutory capital reserve | 6 | 6 |
| Currency translation reserve | 439 | 441 |
| Retained profit (-loss) | -1,584 | -2,026 |
| TOTAL EQUITY | 33,974 | 33,672 |
| TOTAL EQUITY AND LIABILITIES | 40,104 | 40,429 |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| EUR '000 | Q3 2015 | Q3 2014 | 9m 2015 | 9m 2014 |
| Sales | 11,358 | 10,042 | 33,095 | 31,515 |
| Cost of goods sold | -9,716 | -8,816 | -28,910 | -27,920 |
| Gross profit | 1,642 | 1,226 | 4,185 | 3,595 |
| Operating expenses | -1,353 | -1,321 | -3,812 | -4,046 |
| Selling and distribution expenses | -992 | -856 | -2,784 | -2,686 |
| Administrative expenses | -361 | -465 | -1,028 | -1,360 |
| Other income/expenses | 159 | 146 | 310 | 1,032 |
| Fair value adjustment on biological assets | 320 | 377 | -529 | -248 |
| Operating profit | 768 | 428 | 154 | 333 |
| Financial income | 9 | 1 | 238 | 12 |
| Financial expenses | -24 | -227 | -80 | -539 |
| Profit (-loss) before tax | 753 | 202 | 312 | -194 |
| Income tax | -62 | -80 | 130 | -30 |
| Net profit (-loss) for the year from continuing operations | 691 | 122 | 442 | -224 |
| Net profit for the year from discontinuing operations (attributable to equity holders of the company) | 0 | 2,399 | 0 | 3,896 |
| Net profit | 691 | 2,521 | 442 | 3,672 |
| Other comprehensive income (-expense) that might subsequently classified to profit or loss: | ||||
| Foreign currency translation differences | -27 | 53 | -2 | -52 |
| including continued operations | -27 | 3 | -2 | -65 |
| including discontinued operations | 0 | 50 | 0 | 13 |
| Total comprehensive income (-expense) | 664 | 2,574 | 440 | 3,620 |
| Profit (-loss) per share (€) | 0.02 | 0.07 | 0.01 | 0.09 |
| including continued operations | 0.02 | 0.00 | 0.01 | -0.01 |
| including discontinued operations | 0.00 | 0.06 | 0.00 | 0.10 |
| Diluted profit (-loss) per share (€) | 0.02 | 0.07 | 0.01 | 0.09 |
| including continued operations | 0.02 | 0.00 | 0.01 | -0.01 |
| including discontinued operations | 0.00 | 0.06 | 0.00 | 0.10 |
Indrek Kasela AS PRFoods Member of the Management Board Phone: +372 6033 800 indrek.kasela@prfoods.ee www.prfoods.ee
