Consolidated Unaudited Interim Report of AS PRFoods for the 4th quarter and 12 months of 2023/2024 financial year
MANAGEMENT COMMENTARY
PRFoods AS has embarked on changes during the past financial year. In the second half of the financial year, the structure of our group changed – our developed small offshore fish farm in Saaremaa, Redstorm OÜ, left the group. Our primary focus is on developing production units in Estonia and the United Kingdom, while we continue to innovate in the creation of fish farms in Estonia as a side activity.
The revenue for the past financial year decreased by 13% compared to the previous year, but the turnover in the fourth quarter increased by 12% compared to the same period last year. This growth was largely due to securing the market positions of the Saaremaa production unit in various markets.
The financial year ended with a revenue of 17.09 million euros, compared to 19.58 million euros in the previous year. The profit from the sale of companies in the previous financial year has been replaced by a loss of 2.78 million euros. We can affirm that the past financial year has been one of the most challenging in our history. This was largely due to the cessation of sales from the Saaremaa production unit to the Finnish export market and the decision of our partner there to terminate cooperation with us, transferring market share to their production units. This resulted in a complete absence of sales to Finland until 2024. Considering that the Saaremaa production unit was a subcontractor factory until February 2022, rebuilding the Saaremaa unit has been a significant challenge. We would like to commend our sales and production teams in Saaremaa for their efforts. Their effective work is reflected in the growth of turnover and markets for the Saaremaa unit, as well as opportunities in export markets.
While the successful rebuilding of the Saaremaa unit from scratch is commendable, we must also acknowledge our UK unit, which, despite crises and the associated volatile situations, has maintained its market positions and profitability. The Scottish management team has shown determination, maintaining the level and development vision of the region’s most renowned fish brand.
The group enters the new financial year with a new board and clear strategic views, which also include the presentation of a restructuring plan and a thorough review of all historical processes. The year will be challenging. For instance, managing cash flow will certainly be a challenge in the first half of the year. Although the group’s debt burden has been reduced, the ratio is still too high, so the continued support of shareholders is necessary.
The situation is further complicated by the fluctuating economic environment in Estonia, where the VAT increase has significantly impacted consumption, and the forecasted increase will affect food producers even more. We live in interesting times, and in many economic sectors, particularly those not subsidized or protected by the state, one challenge is replaced by another.
KEY RATIOS
INCOME STATEMENT
| Mln EUR | Q4 2023/2024 | 2023/2024 | Q4 2022/2023 | 2022/2023 |
| Sales | 4.46 | 17.09 | 3.99 | 19.58 |
| Gross profit | 0.56 | 3.2 | 0.39 | 3.58 |
| EBITDA from operations | -0.04 | -0.34 | -0.16 | 0.30 |
| EBITDA | -0.03 | -0.34 | -0.01 | 0.30 |
| EBIT | -0.52 | -1.41 | -0.29 | -0.97 |
| EBT | -0.71 | -2.68 | -0.55 | -0.40 |
| Net profit (loss) | -0.71 | -2.78 | -0.50 | 0.33 |
| Gross margin | 12.52% | 18.72% | 9.87% | 18.26% |
| Operational EBITDA margin | -0.94% | -1.97% | -3.98% | 1.54% |
| EBITDA margin | -0.73% | -1.97% | -0.17% | 1.54% |
| EBIT margin | -11.71% | -8.25% | -7.31% | -4.95% |
| EBT margin | -15.84% | -15.66% | -13.65% | 2.02% |
| Net margin | -15.83% | -16.29% | -12.62% | 1.69% |
| Operating expense ratio | -24.44% | -27.06% | -20.99% | -23.97% |
BALANCE SHEET
| Mln EUR, unless indicated otherwise | 30.06.2024 | 30.06.2023 | 30.06.2022 |
| Net debt | 14.3 | 16.7 | 24.7 |
| Equity | 5.1 | 8.3 | 8.1 |
| Working capital | -9.2 | 0.0 | -3.2 |
| Assets | 23.8 | 30.2 | 38.9 |
| Liquidity ratio | 0.3x | 1.0x | 0.7x |
| Equity ratio | 21.3% | 27.4% | 20.7% |
| Gearing ratio | 73.8% | 66.9% | 75.4% |
| Debt to total assets | 0.8x | 0.7x | 0.8x |
| Net debt to operating EBITDA | -42.4x | 55.8x | -14.5x |
| ROE | -41.7% | 4.1% | -68.5% |
| ROA | -10.3% | 1.0% | -17.3% |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR ‘000 | 30.06.2024 | 30.06.2023 |
| ASSETS | ||
| Cash and cash equivalents | 203 | 394 |
| Receivables and prepayments | 2,386 | 2,119 |
| Inventories | 1,644 | 1,861 |
| Biological assets | 0 | 772 |
| Total current assets | 4,233 | 5,145 |
| Long-term financial investments | 418 | 381 |
| Tangible assets | 4,164 | 6,563 |
| Intangible assets | 14,999 | 18,157 |
| Total non-current assets | 19,582 | 25,101 |
| TOTAL ASSETS | 23,815 | 30,246 |
| EQUITY AND LIABILITIES | ||
| Interest-bearing liabilities | 10,899 | 2,111 |
| Payables and prepayments | 2,544 | 3,035 |
| Total current liabilities | 13,443 | 5,146 |
| Interest-bearing liabilities | 3,599 | 15,024 |
| Payables and prepayments | 0 | 0 |
| Deferred tax liabilities | 1,446 | 1,466 |
| Government grants | 248 | 317 |
| Total non-current liabilities | 5,292 | 16,807 |
| TOTAL LIABILITIES | 18,736 | 21,953 |
| Share capital | 7,737 | 7,737 |
| Share premium | 14,007 | 14,007 |
| Treasury shares | – 390 | -390 |
| Statutory capital reserve | 51 | 51 |
| Currency translation differences | 439 | 609 |
| Retained profit (loss) | -16,765 | -13,981 |
| Equity attributable to parent | 5,079 | 8,033 |
| Non-controlling interest | 0 | 260 |
| TOTAL EQUITY | 5,078 | 8,293 |
| TOTAL EQUITY AND LIABILITIES | 23,815 | 30,246 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| EUR ‘000 | 12m 2022/2023 | 12m 2022/2023 |
| Revenue | 17,086 | 19,578 |
| Cost of goods sold | -13,887 | -16,003 |
| Gross profit | 3,199 | 3,575 |
| Operating expenses | -4,622 | -4,693 |
| Selling and distribution expenses | -2,662 | -2,691 |
| Administrative expenses | -1,960 | -2,002 |
| Other income / expense | 15 | 150 |
| Fair value adjustment on biological assets | 0 | 0 |
| Operating profit (loss) | -1,408 | -970 |
| Financial income / expenses | -1,266 | 1,366 |
| Profit (Loss) before tax | -2,675 | 396 |
| Income tax | -108 | -65 |
| Net profit (loss) for the period | -2,783 | 331 |
| Net profit (loss) attributable to: | ||
| Owners of the Parent Company | -2,780 | 303 |
| Non-controlling interests | -4 | 28 |
| Total net profit (loss) for the period | -2,784 | 331 |
| Other comprehensive income (loss) that may subsequently be classified to profit or loss: | ||
| Foreign currency translation differences | -169 | -231 |
| Total comprehensive income (expense) | -2,953 | 101 |
| Total comprehensive income (expense) attributable to: | ||
| Owners of the Parent Company | -2,949 | 73 |
| Non-controlling interests | -4 | 28 |
| Total comprehensive income (expense) for the period | -2,953 | 101 |
Kristjan Kotkas Timo Pärn
Member of the Management Board Member of the Management Board
investor@prfoods.ee
www.prfoods.ee
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