Consolidated Unaudited Interim Report of AS PRFoods for the 2nd quarter and 6 months of 2024/2025 financial year
MANAGEMENT COMMENTARY
We can confirm that the second quarter of the financial year has been successful for the Group. The traditionally strong Christmas period has also contributed to a notable increase in sales for our production units. We extend our gratitude to our sales teams in both Estonia and the United Kingdom for their efforts.
In the second quarter, the Group’s revenue was 6.8 million euros, rising from 5.4 million euros or 26% compared to last year’s same period. The gross profit for Q2 grew from 1.6 million euros to 1.7 million euros, while EBITDA from operations increased by 20%, from 0.5 million euros to 0.6 million euros. Compared to the previous financial year’s second quarter, the operating loss turned into an operating profit of 0.4 million euros. Additionally, the Group’s net loss for Q2 significantly decreased from 0.7 million euros to 0.1 million euros.
We can also take pride in the results of the first half of the year. The unaudited consolidated revenue reached 11.4 million euros, representing a 28% increase compared to the 2023/2024 financial year. EBITDA from operations grew to 0.7 million euros (compared to -0.2 million euros in the first half of 2023/2024). The operating result turned from a loss of 0.4 million euros in the previous year to an operating profit of 0.4 million euros. The net loss for the first half of the year was 0.4 million euros, compared to 1.4 million euros in the previous financial year.
Our UK production unit, John Ross Jr., remains consistently profitable, and our Estonian production unit, Saare Kala Tootmine, has also shown a strong performance. However, it is important to note that due to the economic downturn in Estonia and changing consumer behaviour, the overall demand for fish products in the Estonian market has significantly declined. While Saare Kala has been able to maintain its market position, the current market volatility and tax increases are hitting food producers and retailers in Estonia the hardest. In addition to the domestic market, we are also seeing weak consumer demand in the Baltic region and Finland.
In the third quarter of this financial year, we will continue to face the above-mentioned challenges in all our markets. Unfortunately, we are not yet emerging from the economic downturn and declining consumption. During these difficult and volatile times, we recognize that every improvement in efficiency metrics is a significant achievement. This reaffirms that our chosen direction to improve profitability is the right one. These positive changes will also have a beneficial impact on the company, our investors, and the well-being of our employees.
In the second quarter, AS PRFoods also divested its 20% stake in TFTAK AS. This decision was necessary to allow us to focus on our core business areas—fish production and aquaculture-related activities. The transaction amount was 280 thousand euros, which aligns with an independent third-party valuation. As a result, the transaction generated a one-time loss of 138 thousand euros in PRFoods’ consolidated and unconsolidated financial statements.
The Management Board of AS PRFoods is finalizing the bond’s restructuring plan, which will be published soon. The Board thanks the Supervisory Board, investors, bondholders, employees, and partners for their trust. Moving into the second half of the year, we remain committed to increasing the Group’s profitability and finding solutions to long-standing challenges.
KEY RATIOS
INCOME STATEMENT
| mln EUR, unless indicated otherwise | 2Q 2024/2025 | 2023/2024 | 2Q 2023/2024 | 2022/2023 |
| Sales | 6.8 | 17.1 | 5.4 | 19.6 |
| Gross profit | 1.7 | 3.2 | 1.6 | 3.6 |
| EBITDA from operations | 0.6 | -0.3 | 0.5 | 0.3 |
| EBITDA | 0.6 | -0.3 | 0.5 | 0.3 |
| EBIT | 0.4 | -3.3 | -0.03 | -1.0 |
| EBT | 0.1 | -4.6 | -0.6 | -0.4 |
| Net profit (-loss) | -0.1 | -4.7 | -0.7 | 0.3 |
| Gross margin | 25.0% | 18.7% | 29.7% | 18.3% |
| Operational EBITDA margin | 10.3% | -2.0% | 10.1% | 1.5% |
| EBITDA margin | 10.3% | -2.0% | 10.1% | 1.5% |
| EBIT margin | 5.9% | -19.4% | -0.6% | -5.1% |
| EBT margin | 1.5% | -26.9% | -10.4% | 2.0% |
| Net margin | -1.5% | -27.3% | -12.2% | 1.5% |
| Operating expense ratio | -18.3% | 27.1% | -30.1% | 24.0% |
BALANCE SHEET
| mln EUR, unless indicated otherwise | 31.12.2024 | 30.06.2024 | 31.12.2023 | 30.06.2023 |
| Net debt | 13.9 | 14.3 | 15.9 | 16.7 |
| Equity | 2.7 | 3.2 | 6.4 | 8.3 |
| Working capital | -9.3 | -9.2 | 2.9 | 0.0 |
| Assets | 23.2 | 21.9 | 28.6 | 30.2 |
| Liquidity ratio | 0.4 | 0.3x | 1.5x | 1.0x |
| Equity ratio | 11.8% | 14.6% | 22.4% | 27.4% |
| Gearing ratio | 83.6% | 81.8% | 71.3% | 66.9% |
| Debt to total assets | 0.9x | 0.9x | 0.8x | 0.7x |
| Net debt to operating EBITDA | 35x | -42.5x | 21.4x | 55.8x |
| ROE | -173.3% | -81.4% | -9.1% | 4.1% |
| ROA | -22.7% | -17.9% | -2.3% | 1.0% |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| EUR ‘000 | 31.12.2024 | 30.06.2024 |
| ASSETS | ||
| Cash and cash equivalents | 1,068 | 203 |
| Trade and other receivables | 3,230 | 2,212 |
| Prepayments | 133 | 173 |
| Inventories | 1,722 | 1,644 |
| Total current assets | 6,154 | 4,232 |
| Long-term financial investments | 0 | 418 |
| Tangible assets | 3,913 | 4,164 |
| Intangible assets | 13,084 | 13,102 |
| Total non-current assets | 16,998 | 17,684 |
| TOTAL ASSETS | 23,152 | 21,916 |
| EQUITY AND LIABILITIES | ||
| Interest-bearing liabilities | 11,687 | 10,899 |
| Trade and other payables | 3,797 | 2,559 |
| Total current liabilities | 15,484 | 13,458 |
| Interest-bearing liabilities | 3,323 | 3,600 |
| Deferred tax liabilities | 1,422 | 1,420 |
| Government grants | 196 | 247 |
| Total non-current liabilities | 4,941 | 5,267 |
| TOTAL LIABILITIES | 20,426 | 18,725 |
| Share capital | 7,738 | 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) | -19,066 | -18,653 |
| Equity attributable to parent | 2,726 | 3,191 |
| Non-controlling interest | 0 | 0 |
| TOTAL EQUITY | 2,726 | 3,191 |
| TOTAL EQUITY AND LIABILITIES | 23,152 | 21,916 |
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
| EUR ‘000 | 2Q 2024/2025 | Q2 2023/2024 | 6m 2024/2025 | 6m 2023/2024 |
| Revenue | 6,793 | 5,445 | 11,414 | 8,856 |
| Cost of goods sold | -5,135 | -3,827 | -8,882 | -7,117 |
| Gross profit | 1,658 | 1,618 | 2,532 | 1,739 |
| Operating expenses | -1,241 | -1,642 | -2,149 | -2,509 |
| Selling and distribution expenses | -791 | -910 | -1,403 | -1,348 |
| Administrative expenses | -451 | -732 | -747 | -1,161 |
| Other income / expense | 3 | -11 | 0 | -20 |
| Fair value adjustment on biological assets | 0 | 0 | 0 | 358 |
| Operating profit (loss) | 419 | -35 | 382 | -432 |
| Financial income / expenses | -360 | -535 | -625 | -842 |
| Profit (Loss) before tax | 59 | -570 | -243 | -1,274 |
| Income tax | -132 | -97 | -170 | -110 |
| Net profit (loss) for the period | -73 | -667 | -413 | -1,385 |
| Net profit (loss) attributable to: | ||||
| Owners of the Parent Company | -74 | -708 | -413 | -1,382 |
| Non-controlling interests | 0 | 42 | 0 | -4 |
| Total net profit (loss) for the period | -74 | -666 | -413 | -1,386 |
| Other comprehensive income (loss) that may subsequently be classified to profit or loss: | ||||
| Foreign currency translation differences | 0 | -43 | -52 | -239 |
| Total comprehensive income (expense) | -74 | -709 | -465 | -1,625 |
| Total comprehensive income (expense) attributable to: | ||||
| Owners of the Parent Company | -74 | -751 | -465 | -1,621 |
| Non-controlling interests | 0 | 42 | 0 | -4 |
| Total comprehensive income (expense) for the period | -74 | -709 | -465 | -1,625 |
| Profit (Loss) per share (EUR) | -0.00 | -0.02 | -0.01 | -0.04 |
| Diluted profit (loss) per share (EUR) | -0.00 | -0.02 | -0.01 | -0.03 |
Kristjan Kotkas Timo Pärn
Member of the Management Board Member of the Management Board
investor@prfoods.ee
www.prfoods.ee
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