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Consolidated Unaudited Interim Report of AS PRFoods for the 2nd quarter and 6 months of 2022/2023 financial year

PRFoods
PRFoods

Consolidated Unaudited Interim Report of AS PRFoods for the 2nd quarter and 6 months of 2022/2023 financial year

MANAGEMENT COMMENTARY

2022/23 financial year that started in July 2022 and represents very different group structure. Due to high leverage and losses, we divested from loss-making Finnish operations in 2022 and sold for profit our Swedish operations.

New group structure has fish processing business in Scotland and Saaremaa, Estonia, and farming operations in Estonia.

The Q2 and H1 sales were 7.3 and 11.9 million euros respectively, naturally less due to offload of Finnish operations, both processing and fish farming (15.3 million in Q2 last year and 29.5 million eur in H1). Better focus on Value Added Product sales and fresh fish sales from our farms, marked very sharp turnaround in profit.

First time in post-covid environment all our operational subsidiaries (Saare Kala Tootmine, Redstorm, JRJ) showed positive EBITDA and were profitable in Q2.

On consolidated basis our results improved drastically in Q2, both on year on year basis and quarter over quarter: EBITDA was 800,000 eur vs -300,000 eur in Q2 2021, improvement of over 360%. On net profit level our results improved by 1,3 million eur: net loss for period was -0.1 meur vs -1,4 meur last year. Our financial expenses decreased by 50% due to leverage. It is important to note that nearly 90% of Group’s debt liabilities carry fixed interest (bonds and loans).

Operating profit increased by 120% and was 0.2 meur vs -1,2 meur last year.

PRFoods Net Debt is still very high, but we managed to improve our liquidity ratio back to 1.0. Despite volatility in food markets and high inflation environment, we see continued demand for our products and ability to transfer input price increases to product prices.

On 6 months basis, our consolidated net profit was 733,000 eur vs -2,12 million loss last year. Net profit includes one-off profit from sale of Swedish subsidiary.

While being more concentrated in our size, we are more focused on performance, and we believe we can achieve sustainable EBITDA profitability in our processing business. Fish Farming is seasonal operation still and next harvest season will after end of current financial year.

It has been tough road negotiating COVID, high inflation, war and breakdown of international logistics, but we have managed. Necessary product changes and management changes were completed, and new team is very ambitious and focussed on profitability. Enormous thank you goes out to all our employees who have shown commitment and resilience!

KEY RATIOS

INCOME STATEMENT

mln EUR
unless indicated otherwise

2Q 2022/2023

2021/2022

2Q 2021/2022

2020/2021

Sales

7,3

42,1

15,3

58,7

Gross profit

1,6

3,1

2,2

5

EBITDA from operations

0,8

-1,7

0,8

-1,2

EBITDA

0,8

-2,1

-0,3

-1,3

EBIT

0,2

-4,2

-1

-3,9

EBT

-0,0

-8,2

-1,4

-5

Net profit (loss)

-0,1

-8,2

-1,4

-5,2

Gross margin

22,1%

7,4%

14,1%

8,50%

Operational EBITDA margin

11,3%

-4,1%

5,2%

-2,1%

EBITDA margin

11,3%

-5,1%

-2,1%

-2,1%

EBIT margin

2,9%

-9,9%

-6,4%

-6,6%

EBT margin

-0,5%

-19,5%

-8,9%

-8,5%

Net margin

-1,8%

-19,4%

-9,1%

-8,8%

Operating expense ratio

-18,9%

-17,1%

15,1%

16,1%

BALANCE SHEET

mln EUR
unless indicated otherwise

31.12.2022

30.06.2022

31.12.2021

30.06.2021

Net debt

17,7

24,7

24,2

20,9

Equity

7,5

8,1

14,9

15,8

Working capital

0,0

-3,2

-2,6

-2,9

Assets

32,2

38,9

56,0

55,3

Liquidity ratio

1,0x

0,7x

0,9x

0,9x

Equity ratio

23,3%

20,7%

26,7%

28,6%

Gearing ratio

70,2%

75,4%

61,8%

56,9%

Debt to total assets

0,8x

0,8x

0,7x

0,7x

Net debt to operating EBITDA

21,4x

-14,5x

-14,3x

-16,9x

ROE

-1,7%

-68,5%

-26,7%

-28,7%

ROA

-0,4%

-17,3%

-7,9%

-9,1%

Consolidated Statement of Financial Position

EUR '000

31.12.2022

31.12.2021

30.06.2022

ASSETS

 

 

 

Cash and cash equivalents

          386

498

110

Receivables and prepayments

        5 016

4 463

2 567

Inventories

        2 089

4 596

2 196

Biological assets

          0

4 523

3 003

Total current assets

          7 491

14 080

7 876

 

 

 

 

Deferred tax assets

              0

38

93

Long-term financial investments

            304

300

229

Tangible assets

        6 944

14 655

8 882

Intangible assets

      17 443

23 715

21 837

Total non-current assets

      24 691

38 708

31 041

TOTAL ASSETS

       32 182 

52 788

38 917

 

 

 

 

EQUITY AND LIABILITIES

 

 

 

Interest-bearing liabilities

        2 777

6 275

7 094

Payables and prepayments

        4 672

11 666

3 978

Government grants

            0

207

0

Total current liabilities

          7 449 

18 148

11 072

 

 

 

 

Interest-bearing liabilities

      15 270

18 180

17 725

Payables and prepayments

          0

0

204

Deferred tax liabilities

        1 644

1 877

1 599

Government grants

            327

662

265

Total non-current liabilities

      17 241

20 719

19 792

TOTAL LIABILITIES

        24 690 

38 867

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

            394

831

839

Retained profit (loss)

-14 605

-8 883

-14 391

Equity attributable to parent

          7 194

13 353

7 853

Non-controlling interest

            297

568

199

TOTAL EQUITY

          7 491 

13 921

8 052

TOTAL EQUITY AND LIABILITIES

        32 182 

52 788

38 917

Consolidated Statement of Profit or Loss And Other Comprehensive Income

EUR '000

2Q 2022/2023

2Q 2021/2022

6m 2022/2023

6m 2021/2022

Revenue

7,300

15,292

11,910

29,499

Cost of goods sold

-5,688

-13,139

-9,785

-26,572

Gross profit

1,612

2,153

2,125

2,927

 

 

 

 

 

Operating expenses

-1,379

-2,395

-2,493

-4,704

Selling and distribution expenses

-671

-1,668

-1,314

-3,249

Administrative expenses

-708

-727

-1,179

-1,455

Other income / expense

-21

11

-68

62

Fair value adjustment on biological assets

0

-752

-170

68

Operating profit (loss)

212

-983

-606

-1,647

Financial income / expenses

-245

-384

1,447

-368

Profit (Loss) before tax

-33

-1,367

841

-2,015

Income tax

-102

-17

-108

-109

Net profit (loss) for the period

-135

-1,384

733

-2,124

 

 

 

 

 

Net profit (loss) attributable to:

 

 

 

 

Owners of the Parent Company

-210

-1,242

668

-2,160

Non-controlling interests

75

-142

66

36

Total net profit (loss) for the period

-135

-1,384

733

-2,124

 

 

 

 

 

Other comprehensive income (loss) that may subsequently be classified to profit or loss:

 

 

 

 

Foreign currency translation differences

0

384

-445

272

Total comprehensive income (expense)

-135

-1,000

288

-1,852

 

 

 

 

 

Total comprehensive income (expense) attributable to:

 

 

 

 

Owners of the Parent Company

-210

-858

223

-1,888

Non-controlling interests

75

-142

66

36

Total comprehensive income (expense) for the period

-135

-1,000

288

-1,852

 

 

 

 

 

Profit (Loss) per share (EUR)

-0.01

-0.03

0.02

-0.06

 

 

 

 

 

Diluted profit (loss) per share (EUR)

0.00

-0.03

0.01

-0.05

Indrek Kasela

AS PRFoods

Member of the Management Board

Phone:+372 452 1470

investor@prfoods.ee

www.prfoods.ee

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