Tallinn, Estonia, 2012-07-10 08:00 CEST (GLOBE NEWSWIRE) --
The unaudited consolidated turnover of AS Premia Foods in the 2nd quarter 2012 was 26.1 million euro. The turnover result decreased by 1.5 million euro, i.e. 5.4%, if compared to the same period previous year. The company’s turnover of 6 months was 43.2 million euro. If compared to the same period previous year, the result decreased by 1 million euro, i.e. 2.4%.
While summarising both periods – the 2nd quarter and 6 months – the turnover increased in the frozen goods business segment and the results of the ice cream and the fish business segments were a bit less than in 2011. As to the target markets, the turnover increased during the first 6 months in all Baltic states, the results of the Finnish and Russian markets were somewhat less than during the same period previous year.
|
Turnover by business segment (MEUR) |
Q1 2012 |
Q1 2011 |
Q2 2012 |
Q2 2011 |
6 months 2012 | 6 months 2011 | ||
| Ice cream | 3.7 | 4.0 | 10.7 | 12.2 | 14.4 | 16.3 | ||
| Frozen goods | 5.3 | 4.9 | 5.6 | 5.0 | 11.0 | 10.0 | ||
| Fish and fish products | 7.7 | 7.4 | 9.1 | 9.8 | 16.8 | 17.2 | ||
| Other | 0.4 | 0.3 | 0.6 | 0.5 | 1.0 | 0.8 | ||
| Total | 17.1 | 16.7 | 26.1 | 27.6 | 43.2 | 44.2 |
In the ice cream business segment, the good result of the 6 months of 2011 was achieved due to the favourable weather conditions in the 2nd quarter. The cold spring and cool June of 2012 had an adverse effect on the ice cream market as a whole influencing negatively the consumption of ice cream in all the target markets of Premia. Due to the above, the turnover result did not reach the level of the 6 months of 2011. The only target market where the company was able to achieve the result comparable with the one of 2011 was the Estonian market, where the turnover was mere 1% less than during the 6 months of 2011. The turnover results suffered the most in the Latvian and Russian markets; also the turnover result of the 6 months of 2011 was not reached in Lithuania.
Without prejudice to the foregoing, as also indicated in our previous reports, it must be emphasised that the results of the ice cream business segment must be evaluated on the basis of the summarised results of the whole summer period, including both, the 2nd and the 3rd quarter. Due to the seasonal effects, the comparison of one summer quarter with the same period previous year may not result in adequate understanding of the results of the entire business segment.
The sales of frozen goods are continuously increasing. The 1 million euro, i.e. 10%, increase in turnover is the result of great efforts made in all the target markets of Premia. The turnover has increased the most in the Latvian market, followed by the Lithuanian and Estonian markets. It is evident that the sales of frozen goods are recovering from the distress of the financial crisis and that the high-quality vegetable mixtures are gaining popularity. Positive trends may also be seen in the HoReCa sector.
The turnover of the fish and fish products business segment was during the period of the 6 months of 2012 most influenced by the decreased price of raw fish. The average market price of raw fish and fillet has decreased, if compared to the same period previous year, by approximately 27%, which quite naturally has had an effect on the turnover results. The Finnish market being the main target market of fish sales for Premia may be characterised by aggressive competition as to prices. Additionally the price pressure of private label products is increasing. Due to the tough competition conditions Premia is mainly focused on the products with higher additional value. Premia has launched several novelties, whereas the Iso-Grilli group of products, which gained popularity already two years ago, has been renewed. While summarising the 6 months period, the turnover of the fish business segment has decreased by 2%, i.e. 415 thousand euro, if compared to the same period previous year.
| Turnover by target market (MEUR) |
Q1 2012 |
Q1 2011 |
Q2 2012 |
Q2 2011 |
6 months 2012 | 6 months 2011 | ||
| Finland | 6.7 | 6.3 | 7.9 | 8.5 | 14.6 | 14.9 | ||
| Estonia | 4.9 | 4.7 | 7.5 | 7.5 | 12.4 | 12.2 | ||
| Latvia | 2.4 | 2.3 | 3.7 | 3.6 | 6.1 | 5.9 | ||
| Russia | 1.5 | 1.9 | 3.3 | 4.3 | 4.8 | 6.2 | ||
| Lithuania | 1.6 | 1.4 | 3.6 | 3.6 | 5.2 | 5.1 | ||
| Other markets | 0 | 0 | 0.1 | 0.1 | 0.2 | 0.1 | ||
| Total | 17.1 | 16.7 | 26.1 | 27.6 | 43.2 | 44.2 |
While summarising the 6 months period, the best turnover result has been achieved in the Latvian market, where the growth has been 4%, i.e. 0.2 million euro. However, it must be noted that also other Baltic markets have improved their results, if compared to the first 6 months of 2011 – Estonia by 1.7% and Lithuania by 1.9%. The results of the 6 months of 2011 were not reached in Finland and Russia. In the Finnish market, the turnover results suffered due to the decrease of market prices as referred to above. In Russia, Premia is continuously reorganising its product portfolio. Due to the policy applied by retail chains, novelties were launched only in the end of May. The assortment of Khladokombinat No. 1 is being reviewed and less popular and products driving inefficient production are removed from the portfolio, which in turn has had a planned effect on the turnover results. As in the St. Petersburg’s market Premia is engaged only in the sales of ice cream, the effects of cold spring and cool June cannot be compensated on the account of other business segments and the weather conditions there had a significant adverse effect on the consumption of ice cream.
Additional information:
Kuldar Leis
Premia Foods
Chairman of the Management Board
T: 6 033 800
kuldar.leis@premia.ee
www.premiafoods.eu