Tallinn, Estonia, 2012-04-12 08:00 CEST (GLOBE NEWSWIRE) --
The growth in turnover came from the frozen goods and fish business segments, which grew by 8% and 3% respectively; in the ice cream business segment certain backlog could be noted, if compared to the results of the same period previous year. As to the geographical markets, the Finnish and Baltic markets indicated the signs of growth, the results of the same period of previous year were not achieved only in Russia.
|
Turnover of business segment (MEUR) |
Q1 2012 |
Q1 2011 |
| Ice cream | 3.7 | 4.0 |
| Frozen goods | 5.3 | 4.9 |
| Fish and fish products | 7.7 | 7.4 |
| Other | 0.4 | 0.3 |
| Total | 17.1 | 16.7 |
In the ice cream business segment the first quarter with its winter weathers has always been low season. During this period the purchasing behaviour of people is mostly driven by habitude, ice cream consumption culture and assortment available in retail stores. During wintertime, in the target markets of Premia family ice creams are preferred and the sales of impulse ice creams decrease significantly. In the countries where the consumption of ice cream during winter times has historically been low (which means that family ice creams are not too popular), the fluctuations in the consumption may be remarkable. For Premia, Lithuania and Russia are the examples of such target markets where the difference between the consumption of ice cream during winter and summer periods may be up to 10 times. At the same time in the Estonian market where the difference of ice cream consumption during winter and summer times is 2-3 times, the consumption of ice cream during winter period is more stable and the assortment of family ice creams if compared to Lithuania or Russia in times wider.
The turnover of ice cream business segment of the 1st quarter of 2012 was 8% (i.e. 0.3 million euro) less than during the same period 2011. Such results were mostly influenced by the Latvian, Lithuanian and Russian markets, where the ice cream consumption compared to the previous year decreased despite active marketing campaigns conducted and new products launched during that period. The consumers were rather passive and in addition to branded products also the sales of private label products suffered. At the same time the sales volumes of Premia increased in the Estonian and Finnish markets, which are active also during the winter period.
The sales of frozen goods were active, which is characteristic to winter period and the growth in sales volumes occurred in the last half-year of 2011 continued also in the 1st quarter of 2012. The turnover of frozen goods increased in all Premia’s target markets, i.e. in Estonia, Latvia and Lithuania, whereas the greatest growth was achieved in the Lithuanian market. The business segment as a whole achieved 8% growth in turnover and this is the result of active marketing campaigns and launch of new products. In all the target markets, the HoReCa sector is also activating.
The turnover of fish and fish products business segment increased in the 1st quarter 2012 by 3% if compared to the same period previous year and this is mainly the result of active sales work and achievements in the field of product development in the Finnish HoReCa sector. In the Finnish HoReCa sector Premia sells pre-processed and packaged fish products with higher additional value and unpackaged raw fish. The sales volumes of salted and graved but also marinated products sold to HoReCa sector have increased in both – in the Estonian and Finnish markets, whereas the continuous growth of the sales of chilled and packaged fish products sold under the Viking brand could also be noted. The fish business segment in Finland and Lithuania is influenced by the Easter holidays, which in 2012 similarly to 2011 fall into the 2nd quarter.
| Turnover on target markets (MEUR) |
Q1 2012 |
Q1 2011 |
| Finland | 6.7 | 6.3 |
| Estonia | 4.9 | 4.7 |
| Latvia | 2.4 | 2.3 |
| Russia | 1.5 | 1.9 |
| Lithuania | 1.6 | 1.4 |
| Other | 0 | 0 |
| Total | 17.1 | 16.7 |
The Finnish market indicated the greatest growth in turnover being 0.4 million euro, whereas the turnover in that market increased in both, fish and ice cream business segments. Estonia and Latvia generated 5% turnover growth, i.e. 0.2 million euro and 0.1 million euro, respectively, whereas in Estonia the ice cream business segment and in Latvia frozen goods business segment increased the most. 0.2 million euro, i.e. 12% growth in turnover was in the 1st quarter achieved in Lithuania where the growth was mainly generated in the frozen goods business segment. In the Russian market, where Premia is engaged in ice cream sales only, in the 1st quarter there was a loss in turnover amounting to 0.4 million euro if compared to the same period previous year, which has occurred due to the peculiarities of consumption common to winter period but also due to the winter period changes in the assortments in the largest retail chains of St. Petersburg.
Additional information:
Kuldar Leis
Premia Foods
Chairman of Management Board
T: 6 033 800
kuldar.leis@premia.ee
www.premiafoods.eu