PRFoods

Interim / Quarterly Report • Jun 5, 2023

Company AS PRFoods

Type Company Release

Category Management interim statement or quaterly financial report

Disclosure time 05 Jun 2023 07:58:22 +0300

Attachments:

• PRF_interim_9m2022_2023 .docx.pdf (http://oam.fi.ee/en/download?id=7499)

• PRF_vahearuanne_9k2022_2023.docx.pdf (http://oam.fi.ee/en/download?id=7500)

Currency

Title

AS PRFoods Unaudited Consolidated Interim Report 3d Quarter and 9 months 2022/23

Consolidated Unaudited Interim Report of AS PRFoods for the 3rd quarter and 9 months of 2022/2023 financial year

Updated with Estonian translation of interim report

PRFoods continues to operate now as Estonian-British group, having two productions facilities in Estonia and United Kingdom respectively. Fish farming operations are taking place only in Estonia, with further capacity expansions planned. Q3 and 9 months results show that downsizing operations was risky but proven right, as our profitability has substantially improved. EBITDA from operations improved from -1,1 meur year ago to 0,04 meur. Operating results was near zero when last year it was still -1,4 meur. We finished quarter with small profit compared to -4,5 meur loss last year (due to divestments). On 9 months basis our EBITDA from operations improved from -2,3 meur to 200,000 eur positive result, , while our sales were down 57%. Gross profit improved by 23% in absolute terms, which is very remarkable result. We finished 9 months with 800,000 eur profit compared to -6,6 million lass last year (incl one -off effect of divestments) While our products are in strong demand, the overall price increases have negative effect on purchase frequency. High inflation and high food prices persist, making consumption growth unlikely. Also high leverage of the group straddles the company with extreme cash flow management challenges. We believe with new farming licences we can re-establish PRFoods as regional leader in fish farming and processing. 2024 we see significant growth in sales to Finland and elsewhere in the region. Challenges remain, as for entire food processing sector, but I am very pleased with personal commitment and professionalism in our operating companies, John Ross Jr. and Saare Kala. Their effort has put the company on new lease of life.

KEY RATIOS

INCOME STATEMENT

mln EUR unless indicated otherwise 30 2022/2023 2021/2022 30 2021/2022 2020/2021
Sales	3, 7	42,1	7,4	58,7
Gross profit	1,1	3,1	$-0, 3$	5
EBITDA from operations	0, 0	$-1, 7$	$-1,1$	$-1, 2$
EBITDA	0, 2	$-2,1$	$-0,9$	$-1, 3$
EBIT	$-0,1$	$-4, 2$	$-1, 4$	$-3, 9$
EBT	0,1	$-8, 2$	$-4,5$	$-5$
Net profit (loss)	0,1	$-8, 2$	$-4,5$	$-5, 2$
Gross margin	$28,7$ %	$7,4$ $%$	$-4,3$	$8,50$ $ $
Operational EBITDA margin	$10$ %	$-4,1$ $ $	$-15,5$ $ $	$-2,1$ $ $
EBITDA margin	$5,7$ $ $	$-5,1$ %	$-12,2$ $ $	$-2,1$ %
EBIT margin	$-1,9$ $ $	-9,9%	$-19,2$	$-6,6$ $ $
EBT margin	2,7%	$-19,5$ $ $	$-63,7$ $ $	$-8,5$ $ $
Net margin	$2,8$ $ $	$-19,4$ $ $	$-61,1$ %	$-8,8$ %
Operating expense ratio			$-37,1$ 8 $-17,1$ 8 $-15,6$ 8	$16, 1$ $ $

BALANCE SHEET

mln EUR unless indicated otherwise				$ 31.03.2023 30.06.2022 31.03.2022 30.06.2021 $
Net debt	16,58	24,7	23,9	20,9
Equity	7.81	8,1	10,1	15, 8
Working capital	0.8	$-3.2$	$-2.9$	$-2.9$

lAssets	29, 8	38,9	40	55, 3
Liquidity ratio	1,0x	0.7x	1,0x	0, 9x
Equity ratio	$26,0$ 8	$20,7$ %	$25, 3$	$28,6$ 8
Gearing ratio	$68,1$ $ $	$75,4$ $ $	70, 2	$56,9$ 8
Debt to total assets	0.8x	0.8x	0,8x	0,7x
Net debt to operating EBITDA	21, 4x	$-14,5x$	21, 4x	$-16, 9x$
ROE	$1,3$	$-68,5$ 8	$-34,8$	$-28,7$ $ $
ROA	$0,3$	$-17,3$ $ $	$-9.4$ $ $	$-9,1$ 8

Consolidated Statement of Financial Position

EUR '000		$31.03.2023$ $31.03.2022$ $30.06.2022$
ASSETS
Cash and cash equivalents	457	119	110
Receivables and prepayments	3 0 9 3	3 669	2 567
Inventories	1 785	2 661	2 196
Biological assets		2 3 1 3	3 0 0 3
Total current assets	5 336	8 762	7 876
Deferred tax assets		97	93
Long-term financial investments	304	230	229
Tangible assets	6 766	9 017	8 8 8 2
Intangible assets	17 401	21 942	21 837
Total non-current assets	24 471	31 286	31 041
TOTAL ASSETS	29 806	40 048	38 917

EQUITY AND LIABILITIES
Interest-bearing liabilities		1 450		7 484		7 0 9 4
Payables and prepayments		3 0 5 5		4 004		3 9 7 8
Government grants				152
Total current liabilities		4 505		11 640		11 073
Interest-bearing liabilities		15 585		16 523		17 725
Payables and prepayments						204
Deferred tax liabilities		1 645		1 536		1 599
Government grants		321		226		265
Total non-current liabilities		17 551		18 285		19 792
TOTAL LIABILITIES		22 056		29 925		30 865
Share capital		7 737		7 737		7 737
Share premium		14 007		14 007		14 007
Treasury shares		$-390$		- 390		- 390
Statutory capital reserve		51		51		51
Currency translation differences		261		815		839
Retained profit (loss)		- 14 162		- 11 819	- 14 391
Equity attributable to parent			7 504 10 401 7 853
Non-controlling interest		246		$-278$		199
-----------+------------- TOTAL EQUITY ---------------+------			7 750 10 123 8 052		. . .
TOTAL EQUITY AND LIABILITIES			29 806 40 048 38 917
	-------+------

Consolidated Statement of Profit or Loss And Other Comprehensive Income

EUR '000				3Q 2022/2023 3Q 2021/2022 9m 2022/2023 9m 2021/2022
Revenue	3675	7 379	15 585	36 878
Cost of goods sold				$-2$ 619 $-7$ 698 $-12$ 404 $-34$ 270
Gross profit	1 056	$-319$		3 181 2608
Operating expenses	$-1$ 362		$-1$ 149 $-3$ 855	$-5853$
Selling and distribution expenses	$-621$		$-964$ $-1935$	$-4$ 213
Administrative expenses	$-741$	$-185$	$-1$ 920	$-1640$
Other income / expense	66	$-198$	$-2$	$-136$
Fair value adjustment on biological assets	170	246	0	314
Operating profit (loss)	$-71$	$-1$ 420	$-677$	$-3067$
Financial income / expenses	171	$-3$ 283	1 619	$-3651$
Profit (Loss) before tax	101	$-4$ 703	942	$-6$ 718
Income tax	$\overline{a}$	192	$-106$	83
Net profit (loss) for the period	103	$-4$ 511	836	$-6$ 635
Net profit (loss) attributable to:
Owners of the Parent Company	153	$-4$ 481	821	-6 641
Non-controlling interests	$-51$	$-30$	15	6
Total net profit (loss) for the period	102	$-4$ 511	836	$-6635$

Other comprehensive income (loss) that may subsequently be classified to profit or loss:
Foreign currency translation differences		$-133$ $-140$ $-578$		132
Total comprehensive income (expense)		$-31$ $-4$ 651		258 $-6$ 503
Total comprehensive income (expense) attributable to:
Owners of the Parent Company		$20$ $-4621$		243 $-6$ 509
Non-controlling interests	$-51$	$-30$	15	$6 \mid$
Total comprehensive income (expense) for the period	$-31$	$-4651$	258	$-6$ 503
Profit (Loss) per share (EUR)		$0.00$ $-0.12$	0.02	$-0.17$
Diluted profit (loss) per share (EUR)		$0.00$ $-0.10$		0.02 $-0.15$

Indrek Kasela

AS PRFoods

Member of the Management Board

Phone: +372 452 1470

investor@prfoods.ee

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