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