Tallinn, Estonia, 2017-01-13 16:15 CET (GLOBE NEWSWIRE) --
In the 4th quarter of 2016 the unaudited consolidated sales revenue of PRFoods decreased -1.5% y-o-y, i.e. by -0.3 million euros, reaching the level of 16.9 million euros. The unaudited consolidated revenue of 12 months of 2016 was 47.4 million euros, a decrease of -5.6% in a year, i.e. -2.8 million.
The revenue was 2.4 million euros and 5.3% higher compared to prognosis. PRFoods is pleased with the revenue of 2016 considering that raw fish prices were very high and volatile, which resulted retail chains revisiting their fish and fish product campaigns, as well as PRFoods’ strategy to exit low profitability product groups.
Revenue by product groups
| Revenues mln EUR | Q1 2016 | Q1 2015 | Q2 2016 | Q2 2015 | Q3 2016 | Q3 2015 | Q4 2016 | Q4 2015 | 12m 2016 | 12m 2015 | Change | Change % |
| Smoked products | 3.6 | 3.8 | 3.9 | 4.9 | 3.9 | 4.6 | 5.2 | 5.5 | 16.5 | 18.8 | -2.3 | -12.1% |
| Other fish products | 1.5 | 2.1 | 1.8 | 2.3 | 1.5 | 2.2 | 3.0 | 4.0 | 7.8 | 10.6 | -2.8 | -26.2% |
| Raw fish and fillets | 5.1 | 4.4 | 4.1 | 4.2 | 5.1 | 4.6 | 8.8 | 7.6 | 23.1 | 20.8 | +2.2 | +10.7% |
| Other | 0.01 | 0.0 | 0.02 | 0.01 | 0.0 | 0.01 | 0.01 | 0.02 | 0.03 | 0.04 | -0.0 | -23.3% |
| Total | 10.2 | 10.3 | 9.8 | 11.4 | 10.5 | 11.4 | 16.9 | 17.2 | 47.4 | 50.3 | -2.8 | -5.6% |
The largest increase in revenue came from the raw fish and fillets product group, which increased by +2.2 million euros in total i.e. +10.7%. The revenue from the smoked products group decreased by -2.3 million euros, i.e. -12.1%. The revenue from the other fish products group decreased by -2.8 million euros i.e. -26.2%.
Revenue by client segments
| Revenues mln EUR | Q1 2016 | Q1 2015 | Q2 2016 | Q2 2015 | Q3 2016 | Q3 2015 | Q4 2016 | Q4 2015 | 12m 2016 | 12m 2015 | Change | Change % |
| HoReCa | 2.9 | 3.0 | 3.4 | 3.3 | 3.6 | 3.3 | 4.3 | 4.2 | 14.2 | 13.9 | +0.3 | +2.4% |
| Retail chains | 5.3 | 5.5 | 4.9 | 6.6 | 4.4 | 6.0 | 6.1 | 8.3 | 20.7 | 26.3 | -5.6 | -21.2% |
| Wholesale | 2.0 | 1.8 | 1.3 | 1.5 | 2.5 | 2.0 | 6.4 | 4.6 | 12.2 | 9.9 | +2.3 | +23.7% |
| Other | 0.05 | 0.02 | 0.1 | 0.03 | 0.1 | 0.03 | 0.09 | 0.11 | 0.3 | 0.2 | +0.1 | +44.0% |
| Total | 10.2 | 10.3 | 9.8 | 11.4 | 10.5 | 11.4 | 16.9 | 17.2 | 47.4 | 50.3 | -2.8 | -5.6% |
Based on client segments, the 12 months’ revenue of 2016 from the retail chains sector decreased by -5.6 million euros in total, i.e. -21.2%, and increased in both the HoReCa and wholesale sector, totalling +2.7 million euros. The increase in the wholesale sector was +23.7% and in the HoReCa sector +2.4% accordingly. The decrease in the retail chains sector over the past 12 months of 2016 can mostly be attributed to the loss of several Private Label products from our product portfolio. Regarding the extreme price volatility of raw materials this year, it is unprofitable for the company to be actively involved in manufacturing Private Label goods for retail chains because of their lower margins.
Revenue by target markets
| Revenues mln EUR | Q1 2016 | Q1 2015 | Q2 2016 | Q2 2015 | Q3 2016 | Q3 2015 | Q4 2016 | Q4 2015 | 12m 2016 | 12m 2015 | Change | Change % |
| Finland | 8.3 | 9.3 | 8.0 | 10.0 | 9.0 | 10.2 | 13.7 | 14.7 | 39.0 | 44.2 | -5.2 | -11.8% |
| Estonia | 1.4 | 0.9 | 1.3 | 1.2 | 0.9 | 1.0 | 1.4 | 1.7 | 5.0 | 4.8 | +0.1 | +2.8% |
| Other | 0.6 | 0.1 | 0.5 | 0.2 | 0.6 | 0.2 | 1.8 | 0.7 | 3.5 | 1.2 | +2.2 | +182.2% |
| Total | 10.2 | 10.3 | 9.8 | 11.4 | 10.5 | 11.4 | 16.9 | 17.2 | 47.4 | 50.3 | -2.8 | -5.6% |
The 12 months’ revenue of 2016 increased in Estonia as well as in other countries, mostly in Latvia. The total increase in Estonian market on the y-o-y basis was +0.1 million euros. In summary of 12 months of 2016, the proportion of the revenue from the Estonian market grew by +0.9 percentage points in comparison with the same period last year. The revenue in other countries increased by 2.2 million euros and the proportion of revenue from these markets grew by +4.9 percentage points. The increase in the Estonian and Latvian markets’ revenue is mostly obtained via successful sales campaigns of fresh fish and fish fillets. New markets include sales to Canada in amount of 0.5 million euros and to Japan in amount of 0.7 million euros during the year 2016.
The Finnish revenue decreased in total by -5.2 million euros, i.e. -11.8%, on the y-o-y basis during 12 months of 2016. The revenue from the Finnish market formed 82.2% of the total revenue, having decreased by -5.7 percentage points compared to the same period last year.
Indrek Kasela
AS PRFoods
Member of the Management Board
Phone: +372 6033 800
investor@prfoods.ee
www.prfoods.ee