PRFoods

Interim / Quarterly Report • Feb 28, 2023

Company AS PRFoods

Type Company Release

Category Half-yearly financial report

Disclosure time 28 Feb 2023 19:01:51 +0200

Attachments:

• PRF_interim_6m2022_2023 FINAL 2.pdf (http://oam.fi.ee/en/download?id=7071)

• PRF_vahearuanne_6k2022_2023 FINAL 1.pdf (http://oam.fi.ee/en/download?id=7072)

Currency

Title

Consolidated Unaudited Interim Report of AS PRFoods for the 2nd quarter and 6 months of

Consolidated Unaudited Interim Report of AS PRFoods for the 2nd quarter and 6 months of 2022/2023 financial year

MANAGEMENT COMMENTARY

2022/23 financial year that started in July 2022 and represents very different group structure. Due to high leverage and losses, we divested from loss-making Finnish operations in 2022 and sold for profit our Swedish operations.

New group structure has fish processing business in Scotland and Saaremaa, Estonia, and farming operations in Estonia.

The Q2 and H1 sales were 7.3 and 11.9 million euros respectively, naturally less due to offload of Finnish operations, both processing and fish farming (15.3 million in Q2 last year and 29.5 million eur in H1). Better focus on Value Added Product sales and fresh fish sales from our farms, marked very sharp turnaround in profit.

First time in post-covid environment all our operational subsidiaries (Saare Kala Tootmine, Redstorm, JRJ) showed positive EBITDA and were profitable in Q2.

On consolidated basis our results improved drastically in Q2, both on year on year basis and quarter over quarter: EBITDA was 800,000 eur vs -300,000 eur in Q2 2021, improvement of over 360%. On net profit level our results improved by 1,3 million eur: net loss for period was -0.1 meur vs -1,4 meur last year. Our financial expenses decreased by 50% due to leverage. It is important to note that nearly 90% of Group's debt liabilities carry fixed interest (bonds and loans).

Operating profit increased by 120% and was 0.2 meur vs -1,2 meur last year.

PRFoods Net Debt is still very high, but we managed to improve our liquidity ratio back to 1.0. Despite volatility in food markets and high inflation environment, we see continued demand for our products and ability to transfer input price increases to product prices.

On 6 months basis, our consolidated net profit was 733,000 eur vs -2,12 million loss last year. Net profit includes one-off profit from sale of Swedish subsidiary.

While being more concentrated in our size, we are more focused on performance, and we believe we can achieve sustainable EBITDA profitability in our processing business. Fish Farming is seasonal operation still and next harvest season will after end of current financial year.

It has been tough road negotiating COVID, high inflation, war and breakdown of international logistics, but we have managed. Necessary product changes and management changes were completed, and new team is very ambitious and focussed on profitability. Enormous thank you goes out to all our employees who have shown commitment and resilience!

KEY RATIOS

INCOME STATEMENT

+--------------------------+------------+---------+------------+---------+ mln EUR unless indicated otherwise 2Q 2022/2023 2021/2022 2Q 2021/2022 2020/2021
+--------------------------+------------+---------+------------+---------+ Sales	7,3	42,1	15,3	58,7
+--------------------------+------------+---------+------------+---------+ Gross profit	1,6	3,1	2,2	5
+--------------------------+------------+---------+------------+---------+ EBITDA from operations +--------------------------+------------+---------+------------+---------+	0,8	-1,7	0,8	-1,2
EBITDA +--------------------------+------------+---------+------------+---------+	0,8	-2,1	-0,3	-1,3
EBIT +--------------------------+------------+---------+------------+---------+	0,2	-4,2	-1	-3,9
EBT +--------------------------+------------+---------+------------+---------+	-0,0	-8,2	-1,4	-5
Net profit (loss) +--------------------------+------------+---------+------------+---------+	-0,1	-8,2	-1,4	-5,2
Gross margin	22,1%	7,4%	14,1%	8,50%
+--------------------------+------------+---------+------------+---------+ Operational EBITDA margin +--------------------------+------------+---------+------------+---------+	11,3%	-4,1%	5,2%	-2,1%
EBITDA margin +--------------------------+------------+---------+------------+---------+	11,3%	-5,1%	-2,1%	-2,1%

		$-6,4$ $-6,6$ $-6$
	$-8,9$ $ $	$-8,5$ $\circ$ $\vert$
		$-9,1$ $-8,8$ $ $
		$15,1$ 8 $ $ $16,1$ 8
	2,9%	-9,9% $-0,5$ $-19,5$ $ $ $-1,8$ $-19,4$ $-18,9$ % $-17,1$ %

BALANCE SHEET

mln EUR unless indicated otherwise 31.12.2022 30.06.2022 31.12.2021 30.06.2021
Net debt	17, 7	24,7	24, 2	20, 9
Equity	7,5	8,1	14,9	15, 8
Working capital	0, 0	$-3, 2$	$-2,6$	$-2, 9$
Assets	32, 2	38,9	56,0	55, 3
Liquidity ratio	1,0x	0, 7x	0,9x	0, 9x
Equity ratio	$23,3$ 8	$20,7$ $ $	$26,7$ $ $	$28,6$ 8
Gearing ratio	$70,2$ $ $		$75,4$ 8 $61,8$ 8	$56,9$ $ $
Debt to total assets	0,8x	0, 8x	0,7x	0,7x
Net debt to operating EBITDA	21, 4x		$-14, 5x$ $-14, 3x$	$-16, 9x$
ROE	$-1,7$ %		$-68,5\%$ $-26,7\%$	$-28,7$ $ $
ROA			$[-0, 4\%]$ $[-17, 3\%]$ $[-7, 9\%]$	$-9,1$ 8

Consolidated Statement of Financial Position

EUR '000		--------	31.12.2022 31.12.2021 30.06.2022
ASSETS
Cash and cash equivalents	386	4981
Receivables and prepayments	5016	4 4 6 3	2 5 6 7

Inventories	2089	4 596	2 196
Biological assets	0 1	4 5 2 3	3003
Total current assets	7491	14 080	7 876
Deferred tax assets	0	38	93
Long-term financial investments	304	300	229
Tangible assets	6944	14 655	8 8 8 2
Intangible assets	17 443	23 715	21 837
Total non-current assets	24 691	38 708	31041
TOTAL ASSETS	32 182	52 788	38 917
EQUITY AND LIABILITIES
Interest-bearing liabilities	2 777	6275	7 0 9 4
Payables and prepayments	4 672	11 666	3 9 7 8
Government grants	0	207	$\mathbf{0}$
Total current liabilities	7 449	18 148	11 072
Interest-bearing liabilities	15 270	18 180	17 725
Payables and prepayments	0	0 1	204
Deferred tax liabilities	1 644	1 877	1 599
Government grants		$327$ 662	265
Total non-current liabilities		17 241 20 719	19 792
TOTAL LIABILITIES		24 690 38 867 -----	30865
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	394	831	839
Retained profit (loss)	$-14605$	-8 883	-14 391
Equity attributable to parent	7 194	13353	7 853
Non-controlling interest	297	568	199
TOTAL EOUITY	7491	13921	8 0 5 2
TOTAL EQUITY AND LIABILITIES	32 182	52 788	38 917

Consolidated Statement of Profit or Loss And Other Comprehensive Income

EUR '000				2Q 2022/2023 2Q 2021/2022 6m 2022/2023 6m 2021/2022
Revenue	7,300	15,292	11,910	29,499
Cost of goods sold		$-5,688$ $-13,139$ $-9,785$		$-26,572$
Gross profit	1,612	2,153	2,125	2,927
Operating expenses	$-1,379$	$-2,395$	$-2,493$	$-4,704$
Selling and distribution expenses	$-671$	$-1,668$	$-1, 314$	$-3, 249$
Administrative expenses	$-708$	$-727$	$-1,179$	$-1,455$
Other income / expense	$-21$	11	$-68$	62
Fair value adjustment on biological assets	$\Omega$	$-752$	$-170$	68
Operating profit (loss)	212	$-983$	$-606$	$-1,647$
Financial income / expenses	$-245$	$-384$	1,447	$-368$

Profit (Loss) before tax		$-33$ $-1,367$		$841$ $-2,015$
Income tax	$-102$		$-17$ $-108$	$-109$
Net profit (loss) for the period		$-135$ $-1,384$	733	$-2,124$
Net profit (loss) attributable to:
Owners of the Parent Company		$-210$ $-1,242$	668	$-2,160$
Non-controlling interests	75	$-142$	66	36
Total net profit (loss) for the period	$-135$	$-1,384$	733	$-2,124$
Other comprehensive income (loss) that may subsequently be classified to profit or loss:
Foreign currency translation differences	0	384	$-445$	272
Total comprehensive income (expense)		$-135$ $-1,000$		288 $-1,852$
Total comprehensive income (expense) attributable to:
Owners of the Parent Company	$-210$	$-858$	223	$-1,888$
Non-controlling interests	75	$-142$	66	36
Total comprehensive income (expense) for the period		$-135$ $-1,000$	288	$-1,852$

Profit (Loss) per share (EUR)	-0.01	-0.03	0.02	-0.06
+--------------------------+------------+------------+------------+------------+
+--------------------------+------------+------------+------------+------------+ Diluted profit (loss) per share (EUR) +--------------------------+------------+------------+------------+------------+	0.00	-0.03	0.01	-0.05

Indrek Kasela

AS PRFoods

Member of the Management Board

Phone:+372 452 1470

investor@prfoods.ee

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