Tallinn, Estonia, 2016-10-14 16:15 CEST (GLOBE NEWSWIRE) --
In the 3rd quarter of 2016 the unaudited consolidated sales revenue of PRFoods decreased -7.2% y-o-y, i.e. by -0.8 million euros, reaching the level of 10.5 million euros. The unaudited consolidated revenue of 9 months of 2016 was 30.5 million euros, a decrease of -7.7% in a year, i.e. -2.6 million. The sales are in line with PRFoods revenues forecast of 45 million euros for full year of 2016. The decrease in sales is triggered by shifting away from lower margin products and exceptionally high raw material prices affecting negatively availability and sales campaigns by retailers.
Revenue by product groups
| Revenues mln EUR | Q1 2016 | Q1 2015 | Q2 2016 | Q2 2015 | Q3 2016 | Q3 2015 | 9m 2016 | 9m 2015 | Change | Change % | Proportion |
| Smoked products | 3.6 | 3.8 | 3.9 | 4.9 | 3.9 | 4.6 | 11.4 | 13.3 | -1.9 | -14.4% | 37.2% |
| Other fish products | 1.5 | 2.1 | 1.8 | 2.3 | 1.5 | 2.2 | 4.8 | 6.6 | -1.7 | -26.3% | 15.9% |
| Raw fish and fillets | 5.1 | 4.4 | 4.1 | 4.2 | 5.1 | 4.6 | 14.3 | 13.2 | +1.1 | +8.3% | 46.8% |
| Other | 0.01 | 0.0 | 0.02 | 0.01 | 0.0 | 0.01 | 0.02 | 0.02 | -0.0 | -0.2% | 0.1% |
| Total | 10.2 | 10.3 | 9.8 | 11.4 | 10.5 | 11.4 | 30.5 | 33.1 | -2.6 | -7.7% | 100.0% |
The largest increase in revenue came from the raw fish and fillets product group, which increased by +1.1 million euros in total i.e. +8.3%. The revenue from the smoked products group decreased by -1.9 million euros, i.e. -14.4%. The revenue from the other fish products group decreased by -1.7 million euros i.e. -26.3%.
Revenue by client segments
| Revenues mln EUR | Q1 2016 | Q1 2015 | Q2 2016 | Q2 2015 | Q3 2016 | Q3 2015 | 9m 2016 | 9m 2015 | Change | Change % | Proportion |
| HoReCa | 2.9 | 3.0 | 3.4 | 3.3 | 3.6 | 3.3 | 10.0 | 9.7 | +0.3 | +2.7% | 32.6% |
| Retail chains | 5.3 | 5.5 | 4.9 | 6.6 | 4.4 | 6.0 | 14.6 | 18.0 | -3.4 | -19.0% | 47.8% |
| Wholesale | 2.0 | 1.8 | 1.3 | 1.5 | 2.5 | 2.0 | 5.8 | 5.3 | +0.5 | +9.6% | 19.0% |
| Other | 0.05 | 0.02 | 0.1 | 0.03 | 0.1 | 0.03 | 0.2 | 0.1 | +0.1 | +113.4% | 0.6% |
| Total | 10.2 | 10.3 | 9.8 | 11.4 | 10.5 | 11.4 | 30.5 | 33.1 | -2.6 | -7.7% | 100.0% |
Based on client segments, the 9 months’ revenue of 2016 from the retail chains sector decreased by -3.4 million euros in total, i.e. -19.0%, and increased slightly in both the HoReCa and wholesale sector, totalling +0.8 million euros. The increase in the wholesale sector was +9.6% and in the HoReCa sector +2.7% accordingly. The decrease in the retail chains sector over the past 9 months of 2016 can mostly be attributed to the loss of several Private Label products from our product portfolio. Regarding the extreme price volatility of raw materials this year, it is unprofitable for the company to be actively involved in manufacturing Private Label goods for retail chains because of their lower margins.
Revenue by target markets
| Revenues mln EUR | Q1 2016 | Q1 2015 | Q2 2016 | Q2 2015 | Q3 2016 | Q3 2015 | 9m 2016 | 9m 2015 | Change | Change % | Proportion |
| Finland | 8.3 | 9.3 | 8.0 | 10.0 | 9.0 | 10.2 | 25.3 | 29.5 | -4.2 | -14.3% | 82.7% |
| Estonia | 1.4 | 0.9 | 1.3 | 1.2 | 0.9 | 1.0 | 3.6 | 3.1 | +0.5 | +15.7% | 11.8% |
| Other | 0.6 | 0.1 | 0.5 | 0.2 | 0.6 | 0.2 | 1.7 | 0.5 | +1.2 | +240.2% | 5.5% |
| Total | 10.2 | 10.3 | 9.8 | 11.4 | 10.5 | 11.4 | 30.5 | 33.1 | -2.6 | -7.7% | 100.0% |
The 9 months’ revenue of 2016 increased in Estonia as well as in other countries, mostly in Latvia. The total increase in these markets on the y-o-y basis was +1.7 million euros. In summary of 9 months of 2016, the proportion of the revenue from the Estonian market grew by +2.4 percentage points in comparison with the same period last year, and in other countries by +4.0 percentage points. The increase in the Estonian and Latvian markets’ revenue is mostly obtained via successful sales campaigns of fresh fish and fish fillets.
The Finnish revenue decreased in total by -4.2 million euros, i.e. -14.3%, on the y-o-y basis during 9 months of 2016. The revenue from the Finnish market formed 82.7% of the total revenue, having decreased by -6.4 percentage points compared to the same period last year.
Indrek Kasela AS PRFoods Member of the Management Board Phone: +372 6033 800 investor@prfoods.ee www.prfoods.ee
