Tallinn, Estonia, 2016-11-18 20:47 CET (GLOBE NEWSWIRE) --
Overview of the economic activities
Management commentary
3rd quarter and 9 months have been very successful for PRFoods in terms of profitability, caused by very good results from fish farming.
Although the revenues of 3rd quarter and 9 months are lower on year-on-year basis, it follows the revenues forecast. 9 months sales were 30.5 million euros and the total decrease in sales in 9 months was 7.8%. The main reasons behind decrease in sales is discontinuation of certain private label products. At the same time our export has grown by 240%, reaching 1.7 million euros. We believe that 4th quarter and next year will bring further growth in export sales.
Due to the rapid increase in raw material prices, whereby the increase on yearly basis of salmon has been 47.5% and rainbow trout 51.1%, the gross margins of the company have decreased to 6.8% on 9 months basis and 4.7% in 3rd quarter. Usually we witness increase in gross margins during 4th quarter as we process more of own farmed fish in production and rely less on world markets.
Fish farming has set new records this year. The total biomass is 10,59 million euros and 2,386 tons on 9 months basis. The growth of biomass in 9 months was 256 tons and 12%. The average price of fish in farms is 4.40 euros per kilo. In monetary terms the biomass revaluation produced 3.4 million euros profit.
EBITDA form operations on 9 months basis was -0.3 million (2015 year 9 months was 1.5 million euros). The decrease in EBITDA from operations is caused by more expensive raw materials. In 4th quarter PRFoods expects a growth in EBITDA from operations as we start processing own farmed fish, which is cheaper than world market prices.
Consolidated EBITDA together with fish farming in 3rd quarter was 2.6 million euros, increase of 147% and 9 months consolidated EBITDA is 3.1 million euros, growing by 2.1 million euros in comparison period.
Operating costs have remained under control and we decreased the costs by 8% over comparison period, down to 1.7 million euros. The number of employees has decreased from 211 to 199 due to higher efficiencies in productions. Payroll has remained the same as to compensate the existing staff better.
Net profit increased in 3rd quarter to 1.6 million euros, growth of 136% during comparison period. On 9 months basis, the net profit is 1.2 million euros, growing by 173%. The management of the company is very pleased with the results of 9 months and has positive outlook for 4th quarter.
The 3rd quarter of 2016 compared to the 3rd quarter of 2015
- Unaudited consolidated revenue 10.5 million euros, decrease -0.8 million euros, i.e. -7.3%.
- Gross margin 4.7%, decrease -9.7 percentage points.
- Positive impact from revaluation of biological assets 2.9 million euros (3rd quarter 2015: positive impact of 0.3 million euros).
- EBITDA from operations -0.3 million euros, decrease -1.0 million euros.
- EBITDA 2.6 million euros, improvement 1.6 million euros, i.e. 147.3%.
- The operating profit 2.3 million euros, improvement 1.6 million euros, i.e. 202.2%.
- Net profit 1.6 million euros, improvement 0.9 million euros, i.e. 135.7%.
9months of 2016 compared to 9 months of 2015
- Unaudited consolidated revenue 30.5 million euros, decrease -2.6 million euros, i.e. -7.8%. Gross margin 6.8%, decrease -5.8 percentage points.
- Positive impact from revaluation of biological assets 3.4 million euros (9 months 2015: negative impact of -0.5 million euros).
- EBITDA from operations -0.3 million euros, decrease -1.8 million euros.
- EBITDA 3.1 million euros, improvement 2.1 million euros.
- The operating profit 2.1 million euros, improvement 2.0 million euros, i.e. 1,287.7%.
- Net profit 1.2 million euros, improvement 0.8 million euros, i.e. 173.1%.
| KEY RATIOS | ||||||||
| Income Statement, EUR mln | Q1 2016 | Q2 2016 | Q3 2016 | 9m 2016 | Q1 2015 | Q2 2015 | Q3 2015 | 9m 2015 |
| Sales | 10.2 | 9.8 | 10.5 | 30.5 | 10.3 | 11.4 | 11.4 | 33.1 |
| Gross profit | 1.0 | 0.6 | 0.5 | 2.1 | 1.3 | 1.3 | 1.6 | 4.2 |
| EBITDA from operations | 0.2 | -0.3 | -0.3 | -0.30 | 0.4 | 0.4 | 0.7 | 1.2 |
| EBITDA | -0.2 | 0.7 | 2.6 | 3.1 | -0.6 | 0.6 | 1.1 | 0.7 |
| EBIT | -0.5 | 0.3 | 2.3 | 2.1 | -0.9 | 0.3 | 0.8 | 0.2 |
| EBT | -0.6 | 0.2 | 2.2 | 1.9 | -0.8 | 0.3 | 0.8 | 0.3 |
| Net profit (-loss) | -0.5 | 0.04 | 1.6 | 1.2 | -0.5 | 0.3 | 0.7 | 0.4 |
| Gross margin | 9.5% | 6.3% | 4.7% | 6.8% | 12.2% | 11.3% | 14.5% | 12.6% |
| Operational EBITDA margin | 2.1% | -2.6% | -2.6% | -1.0% | 4.1% | 3.3% | 6.5% | 3.8% |
| EBITDA margin | -2.2% | 6.8% | 24.9% | 10.0% | -5.9% | 4.8% | 9.4% | 2.2% |
| EBIT margin | -5.2% | 3.6% | 22.0% | 7.0% | -8.6% | 2.4% | 6.8% | 0.5% |
| EBT margin | -5.5% | 2.3% | 21.3% | 6.2% | -7.4% | 2.9% | 6.6% | 0.9% |
| Net margin | -4.5% | 0.4% | 15.5% | 4.0% | -5.2% | 2.5% | 6.1% | 1.3% |
| Operating expense ratio | 10.5% | 12.7% | 11.2% | 11.4% | 11.3% | 11.3% | 11.9% | 11.5% |
| KEY RATIOS | |||||||
| Balance Sheet, EUR mln | 31/03/2016 | 30/06/2016 | 30/09/2016 | 31/03/2015 | 30/06/2015 | 30/09/2015 | 31/12/2015 |
| Net debt | -3.1 | -1.4 | 1.3 | -3.3 | -6.5 | -5.2 | -0.6 |
| Equity | 22.7 | 22.7 | 24.3 | 33.1 | 33.3 | 34.0 | 23.2 |
| Working capital | 11.0 | 11.2 | 13.3 | 21.6 | 21.7 | 21.8 | 11.4 |
| Assets | 28.6 | 29.3 | 34.4 | 39.5 | 39.4 | 40.1 | 29.5 |
| Liquidity ratio | 3.7 | 3.4 | 2.7 | 5.5 | 5.9 | 5.9 | 3.7 |
| Equity ratio | 79.4% | 77.6% | 70.7% | 83.9% | 84.6% | 84.7% | 78.8% |
| Gearing ratio | -15.7% | -6.7% | 5.2% | -11.0% | -24.1% | -18.2% | -2.5% |
| Net debt-to-EBITDA | -1.1 | -0.7 | 1.2 | -11.2 | -8.2 | -4.4 | -0.2 |
| ROE | 4.5% | 3.6% | 6.7% | -3.2% | -3.9% | -2.3% | 4.1% |
| ROA | 3.7% | 2.9% | 5.2% | -2.1% | -2.6% | -1.6% | 3.4% |
Consolidated statement of financial position
| EUR '000 | 30/09/2016 | 30/09/2015 | 31/12/2015 |
| ASSETS | |||
| Cash and cash equivalents | 3,551 | 6,054 | 1,921 |
| Receivables and prepayments | 2,543 | 7,050 | 3,653 |
| Inventories | 4,205 | 5,940 | 5,616 |
| Biological assets | 10,591 | 7,247 | 4,421 |
| Total current assets | 20,890 | 26,291 | 15,611 |
| Deferred income tax | 134 | 103 | 138 |
| Long-term financial investments | 103 | 161 | 161 |
| Tangible fixed assets | 7,242 | 7,401 | 7,427 |
| Intangible assets | 6,047 | 6,148 | 6,128 |
| Total non-current assets | 13,526 | 13,813 | 13,854 |
| TOTAL ASSETS | 34,416 | 40,104 | 29,465 |
| EQUITY AND LIABILITIES | |||
| Loans and borrowings | 3,863 | 216 | 286 |
| Payables | 3,509 | 4,057 | 3,760 |
| Government grants | 244 | 180 | 177 |
| Total current liabilities | 7,616 | 4,453 | 4,223 |
| Loans and borrowings | 1,016 | 610 | 1,063 |
| Deferred tax liabilities | 953 | 328 | 252 |
| Government grants | 509 | 739 | 706 |
| Total non-current liabilities | 2,478 | 1,677 | 2,021 |
| TOTAL LIABILITIES | 10,094 | 6,130 | 6,244 |
| Share capital | 7,737 | 19,342 | 7,737 |
| Share premium | 14,007 | 16,026 | 16,026 |
| Treasury shares | -227 | -255 | -172 |
| Statutory capital reserve | 12 | 6 | 6 |
| Currency translation reserve | 420 | 439 | 471 |
| Retained profit (-loss) | 2,373 | -1,584 | -847 |
| Equity attributable to parent | 24,322 | 33,974 | 23,221 |
| TOTAL EQUITY | 24,322 | 33,974 | 23,221 |
| TOTAL EQUITY AND LIABILITIES | 34,416 | 40,104 | 29,465 |
Consolidated statement of profit or loss and other comprehensive income
| EUR '000 | Q3 2016 | Q3 2015 | 9m 2016 | 9m 2015 | 12m 2015 |
| Sales | 10,530 | 11,358 | 30,526 | 33,095 | 50,273 |
| Cost of goods sold | -10,034 | -9,716 | -28,438 | -28,910 | -43,509 |
| Gross profit | 496 | 1,642 | 2,088 | 4,185 | 6,764 |
| Operating expenses | -1,175 | -1,353 | -3,488 | -3,812 | -5,411 |
| Selling and distribution expenses | -827 | -992 | -2,382 | -2,784 | -4,033 |
| Administrative expenses | -348 | -361 | -1,106 | -1,028 | -1,378 |
| Other income/expenses | 102 | 159 | 173 | 310 | 406 |
| Fair value adjustment on biological assets | 2,898 | 320 | 3,364 | -529 | -888 |
| Operating profit (-loss) | 2,321 | 768 | 2,137 | 154 | 871 |
| Financial income | 0 | 9 | 1 | 238 | 303 |
| Financial expenses | -76 | -24 | -231 | -80 | -105 |
| Profit (-loss) before tax | 2,245 | 753 | 1,907 | 312 | 1,069 |
| Income tax | -616 | -62 | -700 | 130 | 110 |
| Net profit (-loss) for the period | 1,629 | 691 | 1,207 | 442 | 1,179 |
| Other comprehensive income (-loss) that may subsequently be classified to profit or loss: | |||||
| Foreign currency translation differences | -21 | -27 | -51 | -2 | 30 |
| Total comprehensive income (-expense) | 1,608 | 664 | 1,156 | 440 | 1,209 |
Indrek Kasela AS PRFoods Member of the Management Board Phone: +372 6033 800 investor@prfoods.ee www.prfoods.ee
