By the resolution of the extraordinary general meeting of shareholders held on 30.10.2014, the business name of the company was changed; the new business name is AS PRFoods.
On 06.10.2014, AS PRFoods, Nordic Foods Holding OÜ and Shiner Macost Ltd executed share purchase agreements under which AS PRFoods undertook to sell and transfer 100% of all the shares of the subsidiaries of AS PRFoods AB Premia KPC and OOO Khladokombinat No 1 and the Russian trademarks owned by AS PRFoods to Nordic Foods Holding OÜ and Shiner Macost Ltd. As a result of the contemplated transaction, AS PRFoods sold and transferred all its Baltic and Russian ice cream and frozen goods operations.
The general meeting of shareholders held on 30.10.2014 decided to approve the transaction of the sale and transfer of AB Premia KPC, a significant subsidiary of AS PRFoods, in accordance with the terms and conditions of the transaction of sale and transfer of the significant subsidiary of AS PRFoods, which were made available to the shareholders together with the convening of the extraordinary general meeting of shareholders.
On 31.10.2014, the transaction of sale and transfer of the Baltic business units and the trademarks owned by AS PRFoods described above was completed. The sales transaction of the shares of OOO Khladokombinat No 1 was completed on 10.11.2014.
The ice cream business segment and the frozen goods business segment, including the Russian trademarks of AS PRFoods, have been indicated in this report as discontinued operations. In order to evaluate the results of the continuing operations, the data of 2013 has been adjusted for comparison purposes.
Continuing operations are the production and sale of fish products in the Finnish and Estonian markets and fish farming.
The net profit of AS PRFoods of the 3rd quarter together with the results of the discontinued operations was 2.5 million euro, which is by 0.4 million euro, i.e. 21.5% more than one year ago. In the summary of nine months, a record high level of 3.7 million euro was reached – exceeding the result of the previous year by 1.7 million euro. The fish and fish products business segment as continuing operations generated a net profit of 0.1 million euro during the 3rd quarter and net loss of the 9 months decreased from 1.2 million euro to 0.3 million euro, if compared to the same period of 2013.
Continuing operations (the data of 2013 has also been adjusted for comparison purposes):
3rd quarter of 2014 (compared to the 3rd quarter of 2013):
- Unaudited consolidated turnover 10.0 million euro, increase 5.0%, i.e. 0.5 million euro.
- Gross margin 12.2%, increase 6.0 percentage points.
- EBITDA from operations 0.3 million euro, increase 0.5 million euro.
- Revaluation of biological assets 0.4 million euro, decrease by 0.9 million euro.
- EBITDA 0.7 million euro, decrease 0.3 million euro.
- Operating profit 0.4 million euro, decrease 0.3 million euro.
- Net profit 0.1 million euro, decrease 0.2 million euro.
9 months of 2014 (comparison to 9 months of 2013):
- Unaudited consolidated turnover 31.5 million euro, increase 17.1%, i.e. 4.6 million euro.
- Gross margin 11.4%, increase 3.3 percentage points.
- EBITDA from operations 0.7 million euro, increase 1.0 million euro.
- Negative impact of revaluation of biological assets 0.2 million euro (the positive impact of the 9 months of 2013 1.1 million euro).
- EBITDA 1.1 million euro, increase 0.6 million euro.
- Operating profit 0.3 million euro, increase 0.6 million euro.
- Net loss 0.3 million euro, improvement by 1.0 million euro.
- Operating expense ratio decreased by 1.4 percentage points, reaching 13.0%.
On 19 June 2014, the Swedish Board of Agriculture decided to satisfy the claim for damages and loss of profit submitted by PRFoods and pay an additional compensation in the amount of 751 thousand euro, which has been recorded as other operating income of the second quarter.
| Continuing operations | ||||||||
| Key Ratios, Profit & Loss | formula | Q3 2014 | Q3 2013 | 9m 2014 | 9m 2013 | |||
| Gross margin | Gross profit / Net sales | 12.2% | 6.2% | 11.4% | 8.1% | |||
| Operational EBITDA margin | EBITDA from operations/Net sales | 3.3% | -2.0% | 2.1% | -1.3% | |||
| EBIT margin | EBIT / Net sales | 4.1% | 8.0% | 0.9% | -1.0% | |||
| Net margin | Net earnings / Net sales | 1.1% | 3.0% | -0.8% | -4.6% | |||
| Operating expense ratio | Operating expenses / Net sales | 13.3% | 13.6% | 13.0% | 14.4% | |||
| Continuing and discontinued operations | ||||||||
| Key Ratios, Profit & Loss | formula | Q3 2014 | Q3 2013 | 9m 2014 | 9m 2013 | |||
| Gross margin | Gross profit / Net sales | 29.0% | 26.4% | 26.5% | 25.8% | |||
| Operational EBITDA margin | EBITDA from operations/Net sales | 10.7% | 7.8% | 7.2% | 5.7% | |||
| EBIT margin | EBIT / Net sales | 10.0% | 10.0% | 5.6% | 4.2% | |||
| Net margin | Net earnings / Net sales | 8.7% | 7.7% | 4.7% | 2.6% | |||
| Operating expense ratio | Operating expenses / Net sales | 20.4% | 21.6% | 21.7% | 23.4% | |||
Condensed consolidated statement of financial position
|
EUR ‘000 |
30/09/2014 unaudited |
31/12/2013 audited |
30/09/2013 unaudited |
| Cash and cash equivalents | 388 | 1,314 | 1,254 |
| Receivables and prepayments | 2,837 | 8,356 | 9,091 |
| Inventories | 4,983 | 10,258 | 10,032 |
| Biological assets | 7,563 | 6,270 | 7,953 |
| Assets of disposal group classified as held for sale | 36,619 | 0 | 0 |
| Total current assets | 52,390 | 26,198 | 28,330 |
| Deferred income tax assets | 188 | 557 | 393 |
| Long-term financial investments | 135 | 127 | 127 |
| Investment property | 0 | 2,084 | 2,084 |
| Property, plant and equipment | 6,720 | 12,500 | 12,712 |
| Intangible assets | 6,203 | 22,373 | 22,424 |
| Total non-current assets | 13,246 | 37,641 | 37,741 |
| TOTAL ASSETS | 65,635 | 63,839 | 66,070 |
| Borrowings | 3,556 | 6,035 | 5,373 |
| Payables and prepayments | 4,105 | 10,057 | 9,895 |
| Liabilities of disposal group classified as held for sale | 9,402 | 0 | 0 |
| Total current liabilities | 17,063 | 16,092 | 15,268 |
| Borrowings | 6,483 | 8,470 | 10,433 |
| Deferred income tax liabilities | 531 | 716 | 858 |
| Government grants | 1,107 | 1,264 | 1,322 |
| Total non-current liabilities | 8,121 | 10,450 | 12,613 |
| Total liabilities | 25,184 | 26,542 | 27,881 |
| Share capital | 19,342 | 19,342 | 19,342 |
| Share premium | 16,022 | 16,026 | 16,026 |
| Treasury shares | -11 | 0 | 0 |
| Statutory capital reserve | 6 | 6 | 6 |
| Other reserves | 0 | 62 | 57 |
| Currency translation differences | 696 | 748 | 665 |
| Retained earnings | 4,396 | 1,113 | 2,093 |
| Equity attributable to equity holders of the parent | 40,451 | 37,297 | 38,189 |
| Total equity | 40,451 | 37,297 | 38,189 |
| TOTAL LIABILITIES AND EQUITY | 65,635 | 63,839 | 66,070 |
Condensed consolidated statement of profit or loss and other comprehensive income
| EUR ‘000 |
Q3 2014 unaudited |
Q3 2013 unaudited |
9m 2014 unaudited |
9m 2013 unaudited |
| Continuing operations | ||||
| Revenue | 10,042 | 9,561 | 31,515 | 26,903 |
| Cost of goods sold | -8,816 | -8,968 | -27,920 | -24,730 |
| Gross profit | 1,226 | 593 | 3,595 | 2,173 |
| Operating expenses | -1,333 | -1,297 | -4,084 | -3,869 |
| Sales and marketing expenses | -856 | -827 | -2,686 | -2,440 |
| General and administrative expenses | -477 | -470 | -1,398 | -1,429 |
| Other income and expenses, net | 146 | 180 | 1,032 | 304 |
| Revaluation of biological assets | 377 | 1,287 | -248 | 1,118 |
| Operating profit (loss) | 416 | 763 | 295 | -274 |
| Finance income | 1 | -19 | 12 | 17 |
| Finance costs | -227 | -164 | -539 | -637 |
| Profit (loss) before income tax | 190 | 580 | -232 | -894 |
| Corporate income tax | -80 | -290 | -30 | -339 |
| Profit (loss) for the period from continuing operations | 110 | 290 | -262 | -1,233 |
| Profit for the period from discontinued operations | 2,411 | 1,785 | 3,934 | 3,160 |
| Profit for the period | 2,521 | 2,075 | 3,672 | 1,972 |
| Other comprehensive income / expense that might subsequently classified to profit or loss: | ||||
| Currency translation differences | 53 | 57 | -52 | 180 |
| incl. continuing operations | 3 | 14 | -65 | -8 |
| incl. discontinued operations | 50 | 43 | 13 | 188 |
| Other comprehensive income /expense | 53 | 57 | -52 | 180 |
| Total comprehensive income | 2,574 | 2,132 | 3,620 | 2,107 |
| Net profit for the period: | ||||
| Attributable to equity holders of the parent | 2,521 | 2,075 | 3,672 | 1,927 |
| Net profit for the period | 2,521 | 2,075 | 3,672 | 1,927 |
| Comprehensive income for the period: | ||||
| Attributable to equity holders of the parent | 2,574 | 2,132 | 3,620 | 2,107 |
| Total comprehensive income | 2,574 | 2,132 | 3,620 | 2,107 |
| Earnings per share | ||||
| Basic earnings per share (EUR) | 0.07 | 0.05 | 0.09 | 0.05 |
| incl. continuing operations | 0.00 | 0.01 | -0.01 | -0.03 |
| incl. discontinued operations | 0.06 | 0.05 | 0.10 | 0.08 |
| Diluted earnings per share (EUR) | 0.07 | 0.05 | 0.09 | 0.05 |
| incl. continuing operations | 0.00 | 0.01 | -0.01 | -0.03 |
| incl. discontinued operations | 0.06 | 0.05 | 0.10 | 0.08 |
Additional information:
Katre Kõvask
AS PRFoods
Chairman of Management Board
T: +372 6 033 800
katre.kovask@premia.ee
www.prfoods.ee
