PRFoods

Annual Report • Aug 30, 2024

Company AS PRFoods

Type Company Release

Category Management interim statement or quaterly financial report

Disclosure time 30 Aug 2024 18:19:06 +0300

Attachments:

• PRF 2024_q2_en_eur_con_00.pdf (http://oam.fi.ee/en/download?id=8676)

• PRF 2024_q2_ee_eur_con_00.pdf (http://oam.fi.ee/en/download?id=8677)

Currency

Title

Consolidated Unaudited Interim Report of AS PRFoods for the 4th quarter and 12 months of

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 The profit from the sale of companies in the previous financial year has been replaced by a loss of 2.78 million euros.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

MIn 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	3 9 4
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	O	o
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	O	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	ー 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

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