OREANDA-NEWS. 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