PRF: Consolidated Unaudited Interim Report of AS Premia Foods for 2nd quarter and 6 months of 2014

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| Source: PRFoods
multilang-release

 

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.

 

KEY RATIOS

Profit & Loss,          EUR mln formula   Q1 Q2   6m 2014   Q1 Q2 6m 2013
Sales     20.5 29.1 49.5   18.3 27.8 46.1
Gross profit     4.8 7.6 12.4   3.8 8.0 11.7
EBITDA from operations before one-offs and fair value adjustment   0.6 2.0 2.6   -0.4 2.4 2.0
EBITDA     -0.6 3.2 2.7   -0.7 2.4 1.7
EBIT     -1.2 2.6 1.5   -1.3 1.7 0.4
Net profit     -1.1 2.3 1.2   -1.2 1.0 -0.1
Gross margin  Gross profit / Net sales   23.3% 26.1% 25.0%   20.6% 28.6% 25.5%
Operational EBITDA margin EBITDA from operations/Net sales   2.9% 6.8% 5.2%   -2.2% 8.8% 4.4%
EBIT margin EBIT / Net sales   -5.8% 9.1% 3.0%   -7.3% 6.2% 0.9%
Net margin  Net earnings / Net sales   -5.6% 7.9% 2.3%   -6.5% 3.7% -0.3%
Operating expense ratio Operating expenses / Net sales   23.5% 21.8% 22.5%   27.1% 22.7% 24.4%
                   
Balance Sheet,   EUR mln formula   31.12.13 31.03.14 30.06.14   31.12.12 31.03.13 30.06.13
Net debt Short and Long term Loans and Borrowings - Cash   13.2 13.6 13.7   13.8 13.2 15.2
Equity     37.3 36.1 37.9   36.5 35.3 36.1
Working capital Current Assets - Current Liabilities   10.1 8.5 9.9   12.1 10.4 10.8
Assets     63.8 63.8 68.5   63.2 62.4 67.7
Liquidity ratio Current Assets / Current Liabilities   1.63 1.47 1.48   1.91 1.73 1.58
Equity ratio  Equity / Total Assets   58% 56% 55%   58% 57% 53%
Gearing ratio Net Debt / (Equity + Net Debt)   26% 27% 27%   28% 27% 30%
Net debt-to-EBITDA Net Debt / EBITDA from operations   3.43 2.82 3.15   2.71 2.80 3.46
ROE Net Earnings / Average Equity   3% 3% 6%   0% 0% 1%
ROA Net Earnings / Average Assets   1% 2% 3%   0% 0% 1%

 

Consolidated statement of financial position

EUR ‘000 30/06/2014 31/12/2013 30/06/2013
Cash and cash equivalents 1,882 1,314 862
Receivables and prepayments 11,437 8,356 12,674
Inventories 12,114 10,258 10,496
Biological assets 5,204 6,270 5,564
Total current assets 30,637 26,198 29,597
       
Deferred income tax assets 568 557 450
Long-term financial investments 135 127 128
Investment property 2,084 2,084 2,084
Property, plant and equipment 12,759 12,500 12,952
Intangible assets 22,336 22,373 22,480
Total non-current assets 37,882 37,641 38,094
TOTAL ASSETS 68,519 63,839 67,691
       
Borrowings 7,412 6,035 5,141
Payables and prepayments 13,315 10,057 13,613
Total current liabilities 20,727 16,092 18,754
       
Borrowings 8,179 8,470 10,950
Deferred income tax liabilities 564 716 569
Government grants 1,155 1,264 1,367
Total non-current liabilities 9,898 10,450 12,886
Total liabilities 30,625 26,542 31,640
       
Share capital 19,342 19,342 19,342
Share premium 16,026 16,026 16,026
Statutory capital reserve 6 6 6
Other reserves 0 62 51
Currency translation differences 644 748 608
Retained earnings 1,876 1,113 18
Equity attributable to equity holders of the parent 37,894 37,297 36,051
Total equity 37,894 37,297 36,051
TOTAL LIABILITIES AND EQUITY 68,519 63,839 67,691

 

Consolidated statement of profit or loss and other comprehensive income

EUR ‘000 Q2 2014 Q2 2013 6m 2014 6m 2013
Revenue 29,058 27,776 49,508 46,053
Cost of goods sold -21,464 -19,823 -37,143 -34,330
Gross profit 7,594 7,953 12,365 11,723
         
Operating expenses -6,323 -6,307 -11,136 -11,258
Sales and marketing expenses -5,373 -5,349 -9,269 -9,297
General and administrative expenses -950 -958 -1,867 -1,961
Other income and expenses, net 864 49 858 106
Revaluation of biological assets 504 34 -625 -169
Operating loss 2,639 1,729 1,462 403
         
Finance income 0 -63 11 37
Finance costs -97 -485 -385 -586
         
Loss before income tax 2,542 1,181 1,088 -146
         
Corporate income tax -255 -143 63 -2
         
Net loss for the period 2,287 1,038 1,151 -148
         
Other comprehensive income / expense that might subsequently classified to profit or loss:        
Currency translation differences -72 104 -104 123
Other comprehensive income /expense -72 104 -104 123
Total comprehensive income/ expense 2,215 1,142 1,047 -25
         
Net profit/ loss for the period:        
  Attributable to equity holders of the parent 2,287 1,038 1,151 -148
Net profit/ loss for the period 2,287 1,038 1,151 -148
         
Comprehensive income/ expese for the period:        
  Attributable to equity holders of the parent 2,215 1,142 1,047 -25
Total comprehensive income/ expense 2,215 1,142 1,047 -25
         
Earnings per share        
Basic earnings per share (EUR) 0.06 0.03 0.03 0.00
Diluted earnings per share (EUR) 0.06 0.03 0.03 0.00

 

         Additional information:
         Katre Kõvask
         AS Premia Foods
         Chairman of the Management Board
         T: +372 6 033 800
         katre.kovask@premia.ee
         www.premiafoods.eu