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Consolidated Unaudited Interim Report of AS PRFoods for the 3nd quarter and 9 months of 2020/2021 financial year

·7-min read

MANAGEMENT COMMENTARY

The most difficult year in PRFoods history is coming to close. Second wave of corona crisis lasted longer than predicted and in reality we have operated under restrictions the entire financial year ending in June. HoReCa has been closed, export logistics has been hindered and Norwegian salmon farmers dumped salmon at record low prices, that led to decrease of entire market. All this is reflected in our financial performance.

Unfortunately we must admit that previous management made mistakes in investments and did not react to changed environment fast enough in Finland, thus amplifying the negatiive effect of corona. UK operations have been consistently profitable and from the beginning of calendar year we have resumed pre-coroan profitability and we see strong growth in sales and profitability for next financial year. Estonian operations are still small, but at the samet ime we doubled our retail sales on y-o-y. Fresh salmon trading, characterised by high sales volatility , but small margins, has been in very substantial decline due to corona and record low prices.

On positive side we managed to end Q3 with same result as last year despite -23% in sales, considering that January-March 2020 were normal months, but January-March 2021, Europe was still thick in corona crisis.

At the same time it has been one of the most positive years for us, as we got much closer in our strategy to become one of the biggest fish farmers in the region. New farming permits in Sweden and potential new permits in Estonia could contribute to 30-50 million euros additional sales in coming years.

We are prepared that there will be new corona-related restrictions in fall 2021.

We also deal actively with deleveraging the company, carrying out new issue of convertible bonds. Ca half of our loans are related to acquisition finance of John Ross Jr. , and their results have not been materially affected by corona, meaning the leverage is acceptable. Fish farming requires long-term financing and we are investigating alternatives. We have reduced the need of working capital in processing, decreasing our inventory levels. Most important is to restore profitability in the environment of decreased sales.


KEY RATIOS

INCOME STATEMENT

mln EUR

1Q 2021

4Q 2020

3Q 2020

2Q 2020

1Q 2020

4Q 2019

3Q 2019

2Q 2019

Sales

14.2

17.0

12.7

15.1

18.5

25.4

19.3

21.5

Gross profit

0.9

2.5

1.2

0.7

2.0

4.3

2.6

2.1

EBITDA from operations

-0.5

0.6

-0.3

-0.4

0.0

2.1

0.7

0.3

EBITDA

-0.7

0.7

-0.5

-0.4

-0.9

1.4

1.5

0.3

EBIT

-1.4

0.0

-1.1

-1.0

-1.4

0.7

1.0

-0.3

EBT

-1.8

-0.1

-1.4

-1.2

-1.8

0.6

0.8

-0.4

Net profit (-loss)

-1.8

-0.2

-1.4

-1.3

-1.7

0.5

0.6

-0.6

Gross margin

6.6%

14.9%

9.4%

4.6%

10.8%

17.0%

13.4%

9.8%

Operational EBITDA margin

-3.5%

3.4%

-2.6%

-2.6%

0.1%

8.4%

3.8%

1.4%

EBITDA margin

-5.3%

4.1%

-3.8%

-2.6%

-4.6%

5.3%

7.6%

1.4%

EBIT margin

-9.9%

0.2%

-8.8%

-6.4%

-7.8%

2.9%

5.0%

-1.2%

EBT margin

-12.5%

-0.6%

-11.3%

-8.1%

-9.8%

2.2%

3.9%

-2.0%

Net margin

-12.5%

-1.2%

-11.3%

-8.4%

-9.2%

2.0%

2.9%

-3.0%

Operating expense ratio

15.6%

15.6%

18.2%

13.9%

14.3%

12.5%

13.4%

11.7%


BALANCE SHEET

mln EUR

31.03.2021

31.12.2020

30.09.2020

30.06.2020

31.03.2020

31.12.2019

30.09.2019

Net debt

21.4

21.9

21.5

20.7

17.0

17.8

19.9

Equity

17.6

18.6

18.5

19.8

21.6

23.3

22.8

Working capital

-5.0

-3.9

-4.4

-4.0

-2.5

-3.5

-3.0

Assets

54.5

57.5

57.4

57.1

56.9

60.5

62.4

Liquidity ratio

0.8x

0.8x

0.8x

0.8x

0.9x

0.9x

0.9x

Equity ratio

32.4%

32.4%

32.3%

34.7%

37.9%

38.5%

36.5%

Gearing ratio

54.9%

54.0%

53.7%

51.1%

44.0%

43.3%

46.6%

Debt to total assets

0.7x

0.7x

0.7x

0.7x

0.6x

0.6x

0.6x

Net debt to EBITDA op

-55.3x

160.0x

12.8x

7.5x

5.3x

5.3x

5.4x

ROE

-23.8%

-21.9%

-7.0%

-9.1%

-5.7%

-3.2%

-4.5%

ROA

-8.4%

-7.8%

-2.4%

-3.2%

-2.1%

-1.2%

-1.6%


Consolidated Statement of Financial Position

Thousand euros

31.03.2021

31.03.2020

30.06.2020

ASSETS

Cash and cash equivalents

1,485

3,023

2,276

Receivables and prepayments

3,536

4,095

3,578

Inventories

7,645

9,656

7,884

Biological assets

2,366

2,590

4,249

Total current assets

15,032

19,364

17,987

Deferred income tax

21

18

54

Long-term financial investments

232

215

232

Tangible fixed assets

15,541

14,135

16,179

Intangible assets

23,626

23,208

22,672

Total non-current assets

39,420

37,576

39,137

TOTAL ASSETS

54,452

56,940

57,124

EQUITY AND LIABILITIES

Loans and borrowings

8,984

9,518

10,611

Payables

10,833

12,142

11,132

Government grants

208

187

211

Total current liabilities

20,025

21,847

21,954

Loans and borrowings

13,944

10,489

12,368

Payables

298

190

190

Deferred tax liabilities

1,787

1,854

1,920

Government grants

752

962

873

Total non-current liabilities

16,781

13,495

15,351

TOTAL LIABILITIES

36,806

35,342

37,305

Share capital

7,737

7,737

7,737

Share premium

14,198

14,007

14,007

Treasury shares

-390

-390

-390

Statutory capital reserve

51

51

51

Currency translation reserve

683

147

-366

Retained profit (-loss)

-4,985

-550

-1,654

Equity attributable to parent

17,294

21,002

19,385

Non-controlling interest

352

596

434

TOTAL EQUITY

17,646

21,598

19,819

TOTAL EQUITY AND LIABILITIES

54,452

56,940

57,124


Consolidated Statement of Profit or Loss And Other Comprehensive Income

Thousand euros

3Q 2020/2021

3Q 2019/2020

9 months 2020/2021

9 months 2019/2020

Sales

14,186

18,488

43,952

63,191

Cost of goods sold

-13,247

-16,497

-39,280

-54,293

Gross profit

939

1,991

4,672

8,898

Operating expenses

-2,219

-2,635

-7,204

-8,402

Selling and distribution expenses

-1,523

-1,735

-4,890

-5,673

Administrative expenses

-696

-900

-2,314

-2,729

Other income / expense

26

-35

163

299

Fair value adjustment on biological assets

-154

-754

-130

-530

Operating profit (loss)

-1,408

-1,433

-2,499

265

Financial income/-expenses

-370

-384

-808

-777

Profit (loss) before tax

-1,778

-1,817

-3,307

-512

Income tax

-1

120

-106

-119

Net profit (loss) for the period

-1,779

-1,697

-3,413

-631

Net profit (loss) attributable to:

Owners of the company

-1,739

-1,658

-3,331

-616

Non-controlling interests

-40

-39

-82

-15

Total net profit (loss)

-1,779

-1,697

-3,413

-631

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

Foreign currency translation differences

781

-20

1,049

361

Total comprehensive income (expense)

-998

-1,717

-2,364

-270

Total comprehensive income (expense) attributable to:

Owners of the Company

-958

-1,678

-2,282

-255

Non-controlling interests

-40

-39

-82

-15

Total comprehensive income (expense) for the period

-998

-1,717

-2,364

-270

Profit (loss) per share (EUR)

-0,04

-0,04

-0,09

-0,02

Diluted profit (loss) per share (EUR)

-0,04

-0,04

-0,09

-0,02


Indrek Kasela

AS PRFoods

Member of the Management Board

Phone:+372 452 1470

investor@prfoods.ee

www.prfoods.ee


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