OREANDA-NEWS. In the 2nd quarter of 2016 the unaudited consolidated sales revenue of PRFoods decreased -14.7% y-o-y, i.e. by -1.6 million euros, reaching the level of 9.8 million euros. The unaudited consolidated revenue of 6 months of 2016 was 20.0 million euros, a decrease of -8.0% in a year, i.e. - 1.7 million. The 2016 revenue forecast is 45 million euros. Although the company is planning a drop in sales this year, it is in line with our budget, as well as our strategy to focus primarily on profitability and on exiting product groups with low margins. This year has seen a very rapid increase in the price of salmon and rainbow trout in the world market, which on the one hand positively affects our fish farming operations, but at the same time, the increase has not yet been translated into end prices. It is also positive that we have been able to diversify our sales more geographically and the proportion of the Estonian market has increased in our revenue.

 

Revenue by product groups

Revenue mln EUR Q1 2016 Q1 2015 Q2 2016 Q2 2015 6m 2016 6m 2015 Change Change % Proportion
Smoked products 3.6 3.8 3.9 4.9 7.5 8.7 -1.2 -14.0% 37.4%
Other fish products 1.5 2.1 1.8 2.3 3.3 4.4 -1.1 -24.2% 16.7%
Raw fish and fillets 5.1 4.4 4.1 4.2 9.2 8.6 +0.6 +6.2% 45.8%
Other 0.0 0.0 0.0 0.0 0.0 0.0 +0.0 +54.0% 0.1%
Total 10.2 10.3 9.8 11.4 20.0 21.7 -1.7 -8.0% 100.0%

The largest increase in revenue came from the raw fish and fillets product group, which increased by +0.6 million euros in total i.e. +6.2%. The revenue from the smoked products group decreased by -1.2 million euros, i.e. -14.0%. The revenue from the other fish products group decreased by -1.1 million euros i.e. -24.2%.

 

Revenue by client segments

Revenue mln EUR Q1 2016 Q1 2015 Q2 2016 Q2 2015 6m 2016 6m 2015 Change Change% Proportion
HoReCa 2.9 3.0 3.5 3.3 6.4 6.3 +0.0 +0.1% 31.9%
Retail chains   5.3 5.5 4.9 6.6 10.2 12.1 -1.8 -15.2% 51.1%
Wholesale   2.0 1.8 1.3 1.5 3.3 3.3 +0.04 +1.1% 16.5%
Other 0.0 0.0 0.1 0.0 0.1 0.0 +0.05 +83.5% 0.5%
Total 10.2 10.3 9.8 11.4 20.0 21.7 -1.7 -8.0% 100.0%

Based on client segments, the 6 months’ revenue of 2016 from the retail chains sector decreased by -1.8 million euros in total, i.e. -15.2%, and increased slightly in both the HoReCa and wholesale sector, totalling +0.1 million euros. The increase in the wholesale sector was +1.1% and in the HoReCa sector +0.1% accordingly. The decrease in the retail chains sector over the past 6 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

Revenue mln EUR Q1 2016 Q1 2015 Q2 2016 Q2 2015 6m 2016 6m 2015 Change Change% Proportion
Finland 8.2 9.3 8.0 10.0 16.2 19.3 -3.0 -15.8% 81.2%
Estonia 1.4 0.9 1.3 1.2 2.7 2.1 +0.5 +26.0% 13.3%
Other 0.6 0.1 0.5 0.2 1.1 0.3 +0.8 +224.6% 5.5%
Total 10.2 10.3 9.8 11.4 20.0 21.7 -1.7 -8.0% 100.0%