OREANDA-NEWS. For Premia Foods AS, the first half of 2014 may be characterised by the increase of turnover, considerably improved profitability and decreased operating costs. The turnover of 6 months of 2014 amounted to 49.5 million euro, having increased by 7.5% within a year, and the EBITDA was 2.7 million euro, which is by 1.5 times more than one year earlier. The net profit increased during the first half of 2014 by 1.3 million euro, amounting to 1.2 million euro and the proportion of operating expense in turnover was 22.5% which is by 2.0 percentage points lower than the result of the same period of previous year.

The 2nd quarter of 2014 compared to the 2nd quarter of 2013:

Unaudited consolidated turnover 29.1 million euro, increase 4.6%, i.e. 1.3 million euro.

Gross margin 26.1%, decrease 2.5 percentage points.

EBITDA from operations 2.0 million euro, decrease 0.5 million euro.

EBITDA 3.2 million euro, increase by 0.8 million euro.

Operating profit 2.6 million euro, increase 0.9 million euro.

Net profit 2.3 million euro, increase 1.2 million euro.

Operating expense ratio decreased by 0.9 percentage points, reaching 21.8%.

Cash-flow from operations 1.2 million euro, increase by 1.7 million euro.

In the 2nd quarter, the turnover increased in the fish business segment as well as in the frozen goods business segment. The turnover of the ice cream business segment was considerably influenced by poor weather conditions of the 2nd quarter and, if calculated in euros, also by the weakening of the Russian ruble against euro - in the summary of 6 months of 2014, the average exchange rate dropped by 15.1% on an annual basis. If calculated in rubles, the turnover of the ice cream business segment increased in the Russian market by 2.2% on an annual basis. The fluctuations of the exchange rate of the Russian ruble against euro does not affect the everyday work of Premia - Premia purchases the raw materials necessary for ice cream production in rubles and sells the final product in the Russian market also only in rubles. Therefore, after eliminating the influence of the fluctuations of the exchange rate of the Russian ruble against euro, the turnover of the whole ice cream business segment decreased by 10.5%, if compared to the previous year.

On 19th June 2014, the Swedish Board of Agriculture decided to satisfy Premia's claim for damages and loss of profit partially and pay the company additional compensation for in the amount of 751 thousand euro, which has been recorded as other operating income.

6 months of 2014 compared to 6 months of 2013:

Unaudited consolidated turnover 49.5 million euro, increase 7.5%, i.e. 3.5 million euro.

EBITDA from operations 2.6 million euro, increase 0.5 million euro.

EBITDA was 2.7 million euro, increase 0.9 million euro.

Operating profit 1.5 million euro, increase 1.1 million euro.

Net profit was 1.2 million euro, increase 1.3 million euro.

The proportion of the operating expense in turnover was 22.5%, decrease 2.0 percentage points.