PRF: Consolidated Unaudited Interim Report of AS PRFoods for 1st quarter of 2016


Tallinn, Estonia, 2016-05-20 08:00 CEST (GLOBE NEWSWIRE) --  

OVERVIEW OF THE ECONOMIC ACTIVITIES

MANAGEMENT COMMENTARY

The financial results of Q1 2016 are satisfying.  In spite of the fact that the Company lost several private labels and HoReCa products from its product portfolio, we managed to keep quarter sales on the same level with the same period on previous year. Price surge of salmon has not yet been transferred to end products since correction of prices in retail market are with inertia, therefore correction of end prices should take place in the second half of the year. The Company’s profit before taxes and amortization (EBITDA) improved by half at the same time compared to the same period in previous year. The Group balance sheet is strong which helps us resist unsteady market situation. Additionally, the Company extended the overdraft contract in SEB Bank by a year. The Group has not included any foreign resources or bank loans in its financing activities.

The Group management is sparingly optimistic with the financial year of 2016. The biggest risk is increase in salmon prices, which is a result of deficiency in the international market. Increase in salmon prices remains limited, though, while all of the offerors, including retail market, are forced to increase prices. The main question is how long will the salmon deficiency continue. As a result of problems in Chilean fish farms, the availability of salmon in the world market is estimated to be 10-15 % less on current year. On the other hand, PRFoods sees the current market situation as a beneficial possibility while the second main product of the Group fish breeding, the rainbow trout, has turned out to be more competitive. Rainbow trout is cheaper than salmon and as the salmon grows more expensive the clients will buy cheaper alternatives, including the rainbow trout.

UNAUDITED FINANCIAL RESULTS OF AS PRFOODS, THE 1ST QUARTER OF 2016 COMPARED TO THE 1ST QUARTER OF 2015

  • Unaudited consolidated revenue 10.2 million euros, decrease -0.06 million euros, i.e. -0.6%. 
  • Gross margin 9.5%, decrease -2.6 percentage points.
  • Negative impact from revaluation of biological assets -0.4 million euros (1st quarter 2015: negative impact of -1.0 million euros).
  • EBITDA from operations 0.2 million euros, decrease -0.2 million euros, i.e. -47.6%.
  • EBITDA -0.2 million euros, improvement 0.4 million euros, i.e. 63.2%.
  • The operating loss -0.5 million euros, improvement 0.4 million euros, i.e. 39.8%.
  • Net loss -0.5 million euros, improvement 0.08 million euros, i.e. 13.9%.
KEY RATIOS      
Profit & Loss, EUR mln Q1 2016 Q1 2015 12m 2015
Sales 10.2 10.3 50.3
Gross profit 1.0 1.3 6.8
EBITDA from operations 0.2 0.4 2.9
EBITDA -0.2 -0.6 2.0
EBIT -0.5 -0.9 0.9
EBT -0.6 -0.8 1.1
Net profit (-loss) -0.5 -0.5 1.2
Gross margin 9.5% 12.2% 13.5%
Operational EBITDA margin 2.1% 4.1% 5.8%
EBITDA margin -2.2% -5.9% 4.0%
EBIT margin -5.2% -8.6% 1.7%
EBT margin -5.5% -7.4% 2.1%
Net margin -4.5% -5.2% 2.3%
Operating expense ratio 10.5% 11.3% 10.8%
Balance Sheet, EUR mln 31.03.2016 31.03.2015 31.12.2015
Net debt -3.1 -3.3 -0.6
Equity 22.7 33.1 23.2
Working capital 11.0 21.6 11.4
Assets 28.6 39.5 29.5
Liquidity ratio 3.7 5.5 3.7
Equity ratio 79.4% 83.9% 78.8%
Gearing ratio -15.7% -11.0% -2.5%
Net debt-to-EBITDA -1.1 -11.2 -0.2
ROE 4.5% -3.2% 4.1%
ROA 3.7% -2.1% 3.4%

 

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EUR '000 31.03.2016 31.03.2015 31.12.2015
ASSETS      
Cash and cash equivalents 4,378 4,001 1,921
Receivables and prepayments 2,463 11,393 3,653
Inventories 5,754 7,387 5,616
Biological assets 2,451 3,579 4,421
Total current assets 15,046 26,360 15,611
       
Deferred income tax 138 103 138
Long-term financial investments 161 161 161
Tangible fixed assets 7,178 6,672 7,427
Intangible assets 6,109 6,194 6,128
Total non-current assets 13,586 13,130 13,854
TOTAL ASSETS 28,632 39,490 29,465
       
EQUITY AND LIABILITIES      
Loans and borrowings 287 196 286
Payables 3,617 4,412 3,760
Government grants 164 184 177
Total current liabilities 4,068 4,792 4,223
       
Loans and borrowings 1,002 509 1,063
Deferred tax liabilities 152 229 252
Government grants 677 827 706
Total non-current liabilities 1,831 1,565 2,021
TOTAL LIABILITIES 5,899 6,357 6,244
       
Share capital 7,737 19,342 7,737
Share premium 16,026 16,026 16,026
Treasury shares -190 -134 -172
Statutory capital reserve 6 6 6
Currency translation reserve 465 458 471
Retained loss -1,311 -2,565 -847
TOTAL EQUITY 22,733 33,133 23,221
TOTAL EQUITY AND LIABILITIES 28,632 39,490 29,465

 

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

EUR '000 Q1 2016 Q1 2015 12m 2015
Sales 10,235 10,299 50,273
Cost of goods sold -9,258 -9,044 -43,509
Gross profit 977 1,255 6,764
       
Operating expenses -1,078 -1,168 -5,411
  Selling and distribution expenses -766 -838 -4,033
  Administrative expenses -312 -330 -1,378
Other income/expenses 12 55 406
Fair value adjustment on biological assets -444 -1,028 -888
Operating profit (-loss) -533 -886 871
Financial income 0 148 303
Financial expenses -32 -29 -105
Profit (-loss) before tax -565 -767 1,069
Income tax 101 228 110
Net profit (-loss) for the period -464 -539 1,179
       
Other comprehensive income (-expense) that might subsequently classified to profit or loss:      
Foreign currency translation differences -6 17 30
Total comprehensive income (-expense) -470 -522 1,209
       
Total comprehensive income (-expense) attributable to:      
   Owners of the Company -470 -522 1,209
Total comprehensive income (-expense) for the period -470 -522 1,209
       
Profit (-loss) per share (EUR) -0.01 -0.01 0.03
       
Diluted profit (-loss) per share (EUR) -0.01 -0.01 0.03

Indrek Kasela
AS PRFoods
Member of the Management Board
Phone: +372 6033 800
investor@prfoods.ee
www.prfoods.ee


Attachments

PRF_Q12016.pdf PRF_interim_Q12016.pdf