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
[email protected]
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