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
