PRFoods

Annual / Quarterly Financial Statement • Aug 21, 2023

Company AS PRFoods

Type Company Release

Category Management interim statement or quaterly financial report

Disclosure time 21 Aug 2023 08:30:00 +0300

Attachments:

• PRF_interim_12m2022_2023 14 8 2023.pdf (http://oam.fi.ee/en/download?id=7649)

• PRF_vahearuanne_12k2022_2023 _14 08 2023.pdf (http://oam.fi.ee/en/download?id=7650)

Currency

Title

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

Consolidated Unaudited Interim Report of AS PRFoods for the 4th quarter and 12 months of 2022/2023 financial year

First year as fully transformed company has ended with moderate success. PRFoods regained profitability despite significantly lower revenues. Q4 revenues were less by 25% and full year by 53%, since we no longer have our Swedish or Finnish operations. Center of our operations is now UK and Estonian fish processing and farming.

We ended full year with 19,6 million Euro sales compared to 42,1 million last year, but more importantly, our previous year -1,6 million EBITDA loss was replaced with 0,3 million Euro profit, 118,75% improvement.

PRFoods first net profit in many years was 350,000 Euros (last year - 8,2 million loss). Two out of three of our operations: fish farming, Estonian processing and UK and fish farming were profitable. Estonian processing unit posted loss.

Our result could have been even better, but our exclusive seller in Finland decided to end the co-operation in May. While in short term it causes pain, in long term this will benefit us handsomely, since from 2024 we no longer are prohibited by non-competition in Finland, can sell directly to retailers and hope to regain several million Euros in sales already in 2024. High food prices in Estonia and governments plan to raise VAT will dampen demand in Estonia, rise inflation and also affect the competitiveness of Estonian industries. It is a challenge, but with new management in helm at Estonia, I am fully confident that Estonian processing operations will also be profitable next year.

I am extremely pleased that our UK business reached over 1 million Euros Ebitda again, after COVID crisis and now inflationary pressures. John Ross Jr continues

to be best Scottish smoked salmon brand and the management has excelled again.

I am also very pleased to announce that our new fish farming licence application in Estonia has been approved and we expect to get the water usage permit in September 2023, meaning we can scale up our fish farming production already from 2024.

Q1 of current year is tough still for Estonia, UK forecast is promising and we expect historically best result from fish farming unit. Cashflow management remains a challenge. Unfortunately we were forced to sell off our profitable Swedish unit to fully repay group level bank loan, this unit could have helped us to regain profitability much faster at much higher level. Leverage is still too high for regained profitability and additional support from shareholders is needed.

We live in interesting times, and one challenge is replaced by another for most of the industries that are not protected or subsidised by government.

KEY RATIOS

INCOME STATEMENT

+------------------+------------+----------------+------------+----------------+
mln EUR (unless indicated otherwise) +------------------+------------+----------------+------------+----------------+				4Q 2022/2023 12 mos 2021/2022 4Q 2021/2022 12 mos 2020/2021
Sales +------------------+------------+----------------+------------+----------------+	4,0	19,6	5,3	42,1
Gross profit	0,4	3,6	0,5	3,1
+------------------+------------+----------------+------------+----------------+ EBITDA from operations	0,1	0,3	0,4	-1,2
+------------------+------------+----------------+------------+----------------+ EBITDA	0,1	0,3	-0,3	-1,6
+------------------+------------+----------------+------------+----------------+ EBIT	-0,3	-1,0	-1,1	-4,2
+------------------+------------+----------------+------------+----------------+ EBT	-0,5	0,4	-1,5	-8,2
+------------------+------------+----------------+------------+----------------+ Net profit (loss)	-0,5	0,35	-1,5	-8,2
+------------------+------------+----------------+------------+----------------+ Gross margin	9,9%	18,3%	10,0%	7,4%
+------------------+------------+----------------+------------+----------------+ Operational EBITDA margin	2,3%	1,6%	7,6%	-2,8%
+------------------+------------+----------------+------------+----------------+ EBITDA margin +------------------+------------+----------------+------------+----------------+	2,3%	1,6%	-6,3%	-3,7%

EBIT marqin	-7,6%	-5 , 0%	-21 , 3%	-9,9%।
EBT marqin	-12,7%	2,2%	-28 , 7%	-19,5%'
Net marqin	-12,3%	1,8%	-29 , 0%	-19,4%
Operating expense ratio	-21 , 3%	-24 , 0%	-25 , 8%	-17,1%

BALANCE SHEET

mln EUR unless indicated otherwise 30.06.2023 30.06.2022 30.06.2021
Net debt	16,9	24 , 7	22 , 4
Equity	7 , 5	8 , 1	15,8
Working capital	0 , 3	-3,2	-3,2
Assets	29,9	38,9	55,6
Liquidity ratio	1,1x	0 , 7x	0 , 8x
Equity ratio	25,1%	20,7%	28 , 4%
Gearing ratio	69 , 2%	75 , 4%	58 , 7 %
Debt to total assets	0 , 7x	0,8x	0 , 7x
Net debt to operating EBITDA	54,9x	-14,5x	-17,9x
ROE	4 , 4%	-68,5%	-29,0%
ROA	1,0%	-17,3%	-9,2%

Consolidated Statement of Financial Position

EUR '000		30.06.2023 30.06.2022
ASSETS
Cash and cash equivalents	ਤੇ ਰੇ ਕੇ	110
Receivables and prepayments	2 168	2 567 -----
Inventories	1 861	2 196
Biological assets	772	3 003
Total current assets	5 195	7 876
Deferred tax assets		d 3
Long-term financial investments	381	229
Tangible assets	6 563	8 882
Intangible assets	17 718	21 837
Total non-current assets	24 662	31 041
TOTAL ASSETS	29 857	38 917
EQUITY AND LIABILITIES
Interest-bearing liabilities	1 793	7 094
Payables and prepayments	3 127	3 978
Total current liabilities	4 919	11 073
Interest-bearing liabilities	15 461	17 725
Payables and prepayments		204
Deferred tax liabilities	664 1	1 599
Government grants	318	265

Total non-current liabilities	17 442	19 792
TOTAL LIABILITIES	22 361	30 865
Share capital	7 737	7 737
Share premium	14 007	14 007
Treasury shares	- 390	- 390
Statutory capital reserve	51	51
Currency translation differences	ਦੇ ਕੇ ਰੇ	839
Retained profit (loss)	-14 719 -	- 14 391
Equity attributable to parent	7 236	7 853 -
Non-controlling interest	259	199
TOTAL EQUITY	7 495	8 052
TOTAL EQUITY AND LIABILITIES	29 857	38 917

Consolidated Statement of Profit or Loss And Other Comprehensive Income

EUR '000	40	40 2022/2023 2021/2022 2022/2023 2021/2022	12m	12m
Revenue				3 993
Cost of goods sold		-3 599
Gross profit	394	528		3 575
Operating expenses				-851 -1 354 -4 706 -7 207
Selling and distribution expenses				-755

Administrative expenses	-96	-724	-2 015	-2 364
Other income / expense	152	443	150	307
Fair value adjustment on biological assets	0	-734	0	-420
Operating profit ( loss )	-305	-1 117	-982	-4 184
Financial income / expenses	-203	-388	1 416	4 039
Profit (Loss) before tax	-508	-1 505	434	-8 223
Income tax	19	-20	87	63
Net profit (loss) for the period	-489	-1 525	347	-8 160
Net profit (loss) attributable to:
Owners of the Parent Company	-503	-1 502	319	-8 143
Non-controlling interests	13	-23	28	-17
Total net profit (loss) for the period	-489	-1 525	347	-8 160
Other comprehensive income (loss) that may subsequently be classified to profit or loss:
Foreign currency translation differences	288	148	-290	280
Total comprehensive income ( expense )	-201	-1 377	57	-7 880
Total comprehensive income (expense) attributable to:
Owners of the Parent Company	-215	-1 354		-7 863 29
Non-controlling interests	13	– 23	28	-1 /
Total comprehensive income

(expense) for the period	-201	-1 377	57	-7 880
+--------------------------------------+---------+---------+---------+---------+
+--------------------------------------+---------+---------+---------+---------+ Profit (Loss) per share (EUR)	-0,01	-0,04	0,01	-0,21
+--------------------------------------+---------+---------+---------+---------+
+--------------------------------------+---------+---------+---------+---------+ Diluted profit (loss) per share (EUR) +--------------------------------------+---------+---------+---------+---------+	-0,01	-0,03	0,01	-0,21

Indrek Kasela

AS PRFoods

Member of the Management Board

Phone:+372 452 1470

investor@prfoods.ee

www.prfoods.ee