Consolidated Unaudited Interim Report of AS PRFoods for the 1st quarter and 3 months of 2024/2025 financial year
MANAGEMENT COMMENTARY
PRFoods’ new financial year began with better results than the previous year. The first quarter is traditionally one of the more seasonally quiet periods in our field. Nevertheless, the first quarter’s revenue reached 4.6 million euros, which is a 35.3% increase compared to the same time last year. The most significant sales growth was observed in Estonia, where revenue increased by 207.1%, reaching 1.5 million euros. Moderate growth was also seen in the UK market, where revenue rose by 6.4%, totalling 3.1 million euros.
EBITDA from operating activities turned positive, amounting to 0.1 million euros, compared to -0.5 million euros in the same quarter last year. The net loss for the first quarter of this financial year decreased by 0.4 million euros, amounting to 0.3 million euros compared to 0.7 million euros the previous year.
In challenging and volatile times, we must acknowledge that every improvement in efficiency metrics is a significant achievement for us. This confirms that the direction chosen to improve the company’s profitability is the right one. These positive changes, in turn, have a favourable impact on the well-being of the company, its investors, and the group’s employees.
High inflation and changes in consumer behaviour affect all food producers. In the organization of work at our Estonian production unit and the portfolio of products we offer, we need to find innovative solutions to provide consumers with quality fish products in suitable forms and at competitive prices. The VAT increase set to take effect at the beginning of the new calendar year will undoubtedly impact all Estonian producers and consumers.
Currently, we see that retail prices for fish products have stabilized or decreased, and we anticipate strong demand during the Christmas season. Stability, both in revenue and operations, is more important than volatility. Today’s foundation is much stronger than in previous years. While we are smaller, we are also more efficient. However, there is still much work ahead to achieve the desired success.
The Management Board continues to work on mapping out restructuring options for PRFoods’ debt obligations and preparing a corresponding proposal.
KEY RATIOS
INCOME STATEMENT
| mln EUR, unless indicated otherwise | 1Q 2024/2025 | 2023/2024 | 1Q 2023/2024 | 2022/2023 |
| Sales | 4.6 | 17.1 | 3.4 | 19.6 |
| Gross profit | 0.9 | 3.2 | 0.1 | 3.6 |
| EBITDA from operations | 0.1 | -0.3 | -0.5 | 0.3 |
| EBITDA | 0.1 | -0.3 | -0.1 | 0.3 |
| EBIT | 0.0 | -3.3 | -0.4 | -1.0 |
| EBT | -0.3 | -4.6 | -0.7 | -0.4 |
| Net profit (-loss) | -0.3 | -4.7 | -0.7 | 0.3 |
| Gross margin | 19.6% | 18.7% | 3.5% | 18.3% |
| Operational EBITDA margin | 2.2% | -2.0% | -13.6% | 1.5% |
| EBITDA margin | 2.2% | -2.0% | -3.1% | 1.5% |
| EBIT margin | 0.0% | -19.4% | -11.7% | -5.1% |
| EBT margin | -6.5% | -26.9% | -20.7% | 2.0% |
| Net margin | -6.5% | -27.3% | -21.1% | 1.5% |
| Operating expense ratio | 19.6% | 27.1% | 25.4% | 24.0% |
BALANCE SHEET
| mln EUR, unless indicated otherwise | 30.09.2024 | 30.06.2024 | 30.09.2023 | 30.06.2023 |
| Net debt | 14.1 | 14.3 | 17.0 | 16.7 |
| Equity | 2.8 | 3.2 | 7.4 | 8.3 |
| Working capital | -9.7 | -9.2 | 0.2 | 0.0 |
| Assets | 21.8 | 21.9 | 29.3 | 30.2 |
| Liquidity ratio | 0.3x | 0.3x | 1.0x | 1.0x |
| Equity ratio | 12.8% | 14.6% | 25.2% | 27.4% |
| Gearing ratio | 83.4% | 81.8% | 69.7% | 66.9% |
| Debt to total assets | 0.9x | 0.9x | 0.8x | 0.7x |
| Net debt to operating EBITDA | -199x | -42.5x | 21.4x | 55.8x |
| ROE | -144.6% | -81.4% | -9.2% | 4.1% |
| ROA | -19.9% | -17.9% | -2.4% | 1.0% |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR ‘000 | 30.09.2024 | 30.06.2024 |
| ASSETS | ||
| Cash and cash equivalents | 274 | 203 |
| Trade and other receivables | 1,852 | 2,212 |
| Prepayments | 163 | 173 |
| Inventories | 2,017 | 1,644 |
| Total current assets | 4,306 | 4,232 |
| Long-term financial investments | 418 | 418 |
| Tangible assets | 4,041 | 4,164 |
| Intangible assets | 13,084 | 13,102 |
| Total non-current assets | 17,544 | 17,684 |
| TOTAL ASSETS | 21,850 | 21,916 |
| EQUITY AND LIABILITIES | ||
| Interest-bearing liabilities | 10,896 | 10,899 |
| Trade and other payables | 3,059 | 2,559 |
| Total current liabilities | 13,955 | 13,458 |
| Interest-bearing liabilities | 3,469 | 3,600 |
| Deferred tax liabilities | 1,422 | 1,420 |
| Government grants | 203 | 247 |
| Total non-current liabilities | 5,095 | 5,267 |
| TOTAL LIABILITIES | 19,050 | 18,725 |
| Share capital | 7,737 | 7,737 |
| Share premium | 14,007 | 14,007 |
| Treasury shares | – 390 | -390 |
| Statutory capital reserve | 51 | 51 |
| Currency translation differences | 387 | 439 |
| Retained profit (loss) | -18,992 | -18,653 |
| Equity attributable to parent | 2,801 | 3,191 |
| Non-controlling interest | 0 | 0 |
| TOTAL EQUITY | 2,801 | 3,191 |
| TOTAL EQUITY AND LIABILITIES | 21,850 | 21,916 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| EUR ‘000 | 3m 2024/2025 | 3m 2023/2024 |
| Revenue | 4,621 | 3,411 |
| Cost of goods sold | -3,747 | -3,290 |
| Gross profit | 874 | 121 |
| Operating expenses | -907 | -867 |
| Selling and distribution expenses | -612 | -438 |
| Administrative expenses | -296 | -429 |
| Other income / expense | -3 | -9 |
| Fair value adjustment on biological assets | 0 | 358 |
| Operating profit (loss) | -36 | -398 |
| Financial income / expenses | -265 | -308 |
| Profit (Loss) before tax | -301 | -705 |
| Income tax | -38 | -14 |
| Net profit (loss) for the period | -339 | -719 |
| Net profit (loss) attributable to: | ||
| Owners of the Parent Company | -339 | -674 |
| Non-controlling interests | 0 | -46 |
| Total net profit (loss) for the period | -339 | -720 |
| Other comprehensive income (loss) that may subsequently be classified to profit or loss: | ||
| Foreign currency translation differences | -52 | -196 |
| Total comprehensive income (expense) | -391 | -916 |
| Total comprehensive income (expense) attributable to: | ||
| Owners of the Parent Company | -391 | -870 |
| Non-controlling interests | 0 | -46 |
| Total comprehensive income (expense) for the period | -391 | -916 |
Kristjan Kotkas Timo Pärn
Member of the Management Board Member of the Management Board
investor@prfoods.ee
www.prfoods.ee
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