PRFoods Consolidated Audited Annual Report 2024/2025

Management Commentary

The 2024/2025 financial year was a significant and transformative period for
PRFoods, marked by the stabilisation of the company's financial position. The
successful restructuring of debt obligations substantially strengthened the
Group's financial standing, reduced liquidity-related pressures on day-to-day
operations, ensured business continuity, preserved jobs, and protected the
position of creditors. As a result of the restructuring, the Group has taken a
decisive step towards stable and sustainable growth while continuing its efforts
to meet the expectations set out in the restructuring plan. The restructuring,
which extended the maturity of debt obligations until 31 March 2028 and set an
interest rate of 0%, considerably eased pressure on cash flows and created a
foundation for implementing the company's strategic action plan, as defined in
the restructuring agreement.

During the 2024/2025 financial year, the Group continued its operations in two
production units on Saaremaa and in Aberdeen focusing primarily on the
production and sale of higher value-added fish products. The Group's sales
revenue increased by approximately 10% year-on-year, reaching EUR 18.8 million.
Growth was driven by both the United Kingdom market, which accounted for
approximately 74% of total sales, and the Estonian market, where sales increased
by about 12%. Sales growth was supported by the gradual recovery in demand for
premium-segment products and the rebound in exports.

The improvement in performance was also reflected in profitability indicators.
Gross profit increased by 0.8 million euros, reaching 4.0 million euros.
Although the Group's operating result remained negative, the operating loss
decreased significantly (-0.6 million euros compared to -3.3 million euros in
the previous year). Due to the IFRS requirement to measure post-restructuring
debt obligations initially at their fair value, a one-off financial income of
9.6 million euros was recognised from the restructuring, resulting in a net
profit of 7.3 million euros for the financial year. Without the impact of the
restructuring, the net result for the year would have been a loss of 1.8 million
euros, which nevertheless represents a significant improvement in operating
performance compared to the previous year.

The Saaremaa unit continued to increase production volumes and market share. In
addition to revenue growth, attention has been directed towards improving
efficiency and profitability. Demand for Saare Kala products has shown a
positive growth trend in both domestic and export markets.

The UK subsidiary, John Ross Jr (Aberdeen) Ltd, maintained positive
profitability and successfully continued to hold a strong market position.
Consistent efforts by the Scottish management and the strength of the brand have
ensured stable results despite challenges in the sector and fluctuations in raw
material prices.

The Management Board remains focused on restoring profitability and enhancing
operational efficiency. The goal is to utilise the stability achieved through
the restructuring to increase operating cash flows, thereby strengthening the
capital base and value of the Group's companies and supporting the achievement
of the restructuring objectives.

We would like to thank all our employees, partners, and investors for their
dedication, trust, and perseverance. The difficult decisions and restructuring
efforts of recent years have laid the foundation for a stronger Group and
ensured the company's continued operations.

Differences from the Q4 and 12-Month Interim Report for 2024/2025

AS PRFoods published its Q4 and 12-month interim report for the 2024/2025
financial year on 29.08.2025. The interim report showed a net loss for the
financial year of 1,658 thousand euros. However, the audited annual report
discloses a net profit of 7,339 thousand euros.

The significant improvement in the result is due to the fact that, at the time
of publishing the interim report, the Management Board had not yet fully
completed its IFRS-mandated obligation to measure post-restructuring debt
obligations at their fair value. As there were multiple restructured debt
obligations with differing terms, and determining fair value involves
significant management judgements, consultation with experts, and auditor
review, this represented a key focus area where the Management Board sought
sufficient assurance.

Since the valuation was not completed at the time of the interim report
publication, the Management Board was unable to reflect the effects of the
restructuring in the Q4 and 12-month interim report. From the revaluation of
debt obligations, a one-off financial income of 9,578 thousand euros was
recognised.

Consolidated statement of financial position

  EUR '000                           30.06.2025   30.06.2024

  ASSETS

  Cash and cash equivalents                 305          203

  Trade and other receivables             1,546        2,212

  Prepayments                               182          173

  Inventories                             1,656        1,644

  Total current assets                    3,689        4,232



  Long-term financial investments             0          418

  Tangible assets                         3,595        4,164

  Intangible assets                      12,956       13,102

  Total non-current assets               16,552       17,684

  TOTAL ASSETS                           20,240       21,916



  EQUITY AND LIABILITIES

  Interest-bearing liabilities              971       10,899

  Trade and other payables                1,563        2,559

  Total current liabilities               2,534       13,458



  Interest-bearing liabilities            5,514        3,600

  Trade and other payables                   30            0

  Deferred tax liabilities                1,421        1,420

  Government grants                         213          247

  Total non-current liabilities           7,179        5,267

  TOTAL LIABILITIES                       9,713       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          451          439

  Retained profit (loss)                -11,327      -18,653

  Equity attributable to parent          10,528        3,191

  Non-controlling interest                    0            0

  TOTAL EQUITY                           10,528        3,191

  TOTAL EQUITY AND LIABILITIES           20,240       21,916

Consolidated statement of comprehensive income

 EUR '000                                     2024/2025               2023/2024

 Revenue                                         18,782                  17,086

 Cost of goods sold                             -14,796                 -13,888

 Gross profit                                     3,986                   3,198



 Operating expenses                              -4,506                  -4,623

 Selling and distribution
 expenses                                        -2,810                  -2,663

 Administrative expenses                         -1,695                  -1,960

 Other income / expense                            -106                  -1,882

 Operating profit (loss)                           -625                  -3,307

 Financial income / expenses                      8,347                  -1,057

 Share of result of associates
 and joint ventures                                -139                      46

 Profit (loss) from the sale of
 the subsidiary                                       0                    -271

 Profit (Loss) before tax                         7,583                  -4,589

 Income tax                                        -244                     -84

 Net profit (loss) for the period                 7,339                  -4,673



 Net profit (loss) attributable
 to:

 Owners of the Parent Company                     7,339                  -4,668

 Non-controlling interests                            0                      -4

 Total net profit (loss) for the
 period                                           7,339                  -4,673



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

 Foreign currency translation
 differences                                         12                    -169

 Total comprehensive income
 (expense)                                        7,351                  -4,842



 Total comprehensive income
 (expense) attributable to:

 Owners of the Parent Company                     7,351                  -4,837

 Non-controlling interests                            0                      -4

 Total comprehensive income
 (expense) for the period                         7,351                  -4,842


 Kristjan Kotkas                                 Timo Pärn

 Member of the Management Board                  Member of the Management Board

 [email protected]
 (mailto:[email protected])

 www.prfoods.ee (http://www.prfoods.ee/)