Consolidated Unaudited Interim Report of AS PRFoods for the 3rd quarter and 9 months of 2022/2023 financial year
Updated with Estonian translation of interim report
PRFoods continues to operate now as Estonian-British group, having two productions facilities in Estonia and United Kingdom respectively. Fish farming operations are taking place only in Estonia, with further capacity expansions planned.
Q3 and 9 months results show that downsizing operations was risky but proven right, as our profitability has substantially improved. EBITDA from operations improved from -1,1 meur year ago to 0,04 meur. Operating results was near zero when last year it was still -1,4 meur. We finished quarter with small profit compared to -4,5 meur loss last year (due to divestments).
On 9 months basis our EBITDA from operations improved from -2,3 meur to 200,000 eur positive result, , while our sales were down 57%. Gross profit improved by 23% in absolute terms, which is very remarkable result.
We finished 9 months with 800,000 eur profit compared to -6,6 million lass last year (incl one -off effect of divestments)
While our products are in strong demand, the overall price increases have negative effect on purchase frequency. High inflation and high food prices persist, making consumption growth unlikely. Also high leverage of the group straddles the company with extreme cash flow management challenges.
We believe with new farming licences we can re-establish PRFoods as regional leader in fish farming and processing. 2024 we see significant growth in sales to Finland and elsewhere in the region.
Challenges remain, as for entire food processing sector, but I am very pleased with personal commitment and professionalism in our operating companies, John Ross Jr. and Saare Kala. Their effort has put the company on new lease of life.
KEY RATIOS
INCOME STATEMENT
| mln EUR unless indicated otherwise | 3Q 2022/2023 | 2021/2022 | 3Q 2021/2022 | 2020/2021 |
| Sales | 3,7 | 42,1 | 7,4 | 58,7 |
| Gross profit | 1,1 | 3,1 | -0,3 | 5 |
| EBITDA from operations | 0,0 | -1,7 | -1,1 | -1,2 |
| EBITDA | 0,2 | -2,1 | -0,9 | -1,3 |
| EBIT | -0,1 | -4,2 | -1,4 | -3,9 |
| EBT | 0,1 | -8,2 | -4,5 | -5 |
| Net profit (loss) | 0,1 | -8,2 | -4,5 | -5,2 |
| Gross margin | 28,7% | 7,4% | -4,3% | 8,50% |
| Operational EBITDA margin | 10% | -4,1% | -15,5% | -2,1% |
| EBITDA margin | 5,7% | -5,1% | -12,2% | -2,1% |
| EBIT margin | -1,9% | -9,9% | -19,2% | -6,6% |
| EBT margin | 2,7% | -19,5% | -63,7% | -8,5% |
| Net margin | 2,8% | -19,4% | -61,1% | -8,8% |
| Operating expense ratio | -37,1% | -17,1% | -15,6% | 16,1% |
BALANCE SHEET
| mln EUR unless indicated otherwise | 31.03.2023 | 30.06.2022 | 31.03.2022 | 30.06.2021 |
| Net debt | 16,58 | 24,7 | 23,9 | 20,9 |
| Equity | 7,8 | 8,1 | 10,1 | 15,8 |
| Working capital | 0,8 | -3,2 | -2,9 | -2,9 |
| Assets | 29,8 | 38,9 | 40 | 55,3 |
| Liquidity ratio | 1,0x | 0,7x | 1,0x | 0,9x |
| Equity ratio | 26,0% | 20,7% | 25,3% | 28,6% |
| Gearing ratio | 68,1% | 75,4% | 70,2 | 56,9% |
| Debt to total assets | 0,8x | 0,8x | 0,8x | 0,7x |
| Net debt to operating EBITDA | 21,4x | -14,5x | 21,4x | -16,9x |
| ROE | 1,3% | -68,5% | -34,8% | -28,7% |
| ROA | 0,3% | -17,3% | -9,4% | -9,1% |
Consolidated Statement of Financial Position
| EUR '000 | 31.03.2023 | 31.03.2022 | 30.06.2022 |
| ASSETS | |||
| Cash and cash equivalents | 457 | 119 | 110 |
| Receivables and prepayments | 3 093 | 3 669 | 2 567 |
| Inventories | 1 785 | 2 661 | 2 196 |
| Biological assets | - | 2 313 | 3 003 |
| Total current assets | 5 336 | 8 762 | 7 876 |
| Deferred tax assets | - | 97 | 93 |
| Long-term financial investments | 304 | 230 | 229 |
| Tangible assets | 6 766 | 9 017 | 8 882 |
| Intangible assets | 17 401 | 21 942 | 21 837 |
| Total non-current assets | 24 471 | 31 286 | 31 041 |
| TOTAL ASSETS | 29 806 | 40 048 | 38 917 |
| EQUITY AND LIABILITIES | |||
| Interest-bearing liabilities | 1 450 | 7 484 | 7 094 |
| Payables and prepayments | 3 055 | 4 004 | 3 978 |
| Government grants | - | 152 | - |
| Total current liabilities | 4 505 | 11 640 | 11 073 |
| Interest-bearing liabilities | 15 585 | 16 523 | 17 725 |
| Payables and prepayments | - | - | 204 |
| Deferred tax liabilities | 1 645 | 1 536 | 1 599 |
| Government grants | 321 | 226 | 265 |
| Total non-current liabilities | 17 551 | 18 285 | 19 792 |
| TOTAL LIABILITIES | 22 056 | 29 925 | 30 865 |
| Share capital | 7 737 | 7 737 | 7 737 |
| Share premium | 14 007 | 14 007 | 14 007 |
| Treasury shares | - 390 | - 390 | - 390 |
| Statutory capital reserve | 51 | 51 | 51 |
| Currency translation differences | 261 | 815 | 839 |
| Retained profit (loss) | - 14 162 | - 11 819 | - 14 391 |
| Equity attributable to parent | 7 504 | 10 401 | 7 853 |
| Non-controlling interest | 246 | - 278 | 199 |
| TOTAL EQUITY | 7 750 | 10 123 | 8 052 |
| TOTAL EQUITY AND LIABILITIES | 29 806 | 40 048 | 38 917 |
Consolidated Statement of Profit or Loss And Other Comprehensive Income
| EUR '000 | 3Q 2022/2023 | 3Q 2021/2022 | 9m 2022/2023 | 9m 2021/2022 |
| Revenue | 3 675 | 7 379 | 15 585 | 36 878 |
| Cost of goods sold | -2 619 | -7 698 | -12 404 | -34 270 |
| Gross profit | 1 056 | -319 | 3 181 | 2 608 |
| Operating expenses | -1 362 | -1 149 | -3 855 | -5 853 |
| Selling and distribution expenses | -621 | -964 | - 1 935 | -4 213 |
| Administrative expenses | -741 | -185 | -1 920 | -1 640 |
| Other income / expense | 66 | -198 | -2 | -136 |
| Fair value adjustment on biological assets | 170 | 246 | 0 | 314 |
| Operating profit (loss) | -71 | -1 420 | -677 | -3 067 |
| Financial income / expenses | 171 | -3 283 | 1 619 | -3 651 |
| Profit (Loss) before tax | 101 | -4 703 | 942 | -6 718 |
| Income tax | 2 | 192 | -106 | 83 |
| Net profit (loss) for the period | 103 | -4 511 | 836 | -6 635 |
| Net profit (loss) attributable to: | ||||
| Owners of the Parent Company | 153 | -4 481 | 821 | -6 641 |
| Non-controlling interests | -51 | -30 | 15 | 6 |
| Total net profit (loss) for the period | 102 | -4 511 | 836 | -6 635 |
| Other comprehensive income (loss) that may subsequently be classified to profit or loss: | ||||
| Foreign currency translation differences | -133 | -140 | -578 | 132 |
| Total comprehensive income (expense) | -31 | -4 651 | 258 | -6 503 |
| Total comprehensive income (expense) attributable to: | ||||
| Owners of the Parent Company | 20 | -4 621 | 243 | -6 509 |
| Non-controlling interests | -51 | -30 | 15 | 6 |
| Total comprehensive income (expense) for the period | -31 | -4 651 | 258 | -6 503 |
| Profit (Loss) per share (EUR) | 0.00 | -0.12 | 0.02 | -0.17 |
| Diluted profit (loss) per share (EUR) | 0.00 | -0.10 | 0.02 | -0.15 |
Indrek Kasela
AS PRFoods
Member of the Management Board
Phone:+372 452 1470
investor@prfoods.ee
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