PRFoods

Annual Report • Oct 31, 2025

PRFoods Consolidated Audited Annual Report 2024/2025

PRFoods Consolidated Audited Annual Report 2024/2025

Management Commentary

The 2024/2025 financial year was a significant and transformative period for
PRFoods, marked by the stabilisation of the company's financial position. The
successful restructuring of debt obligations substantially strengthened the
Group's financial standing, reduced liquidity-related pressures on day-to-day
operations, ensured business continuity, preserved jobs, and protected the
position of creditors. As a result of the restructuring, the Group has taken a
decisive step towards stable and sustainable growth while continuing its efforts
to meet the expectations set out in the restructuring plan. The restructuring,
which extended the maturity of debt obligations until 31 March 2028 and set an
interest rate of 0%, considerably eased pressure on cash flows and created a
foundation for implementing the company's strategic action plan, as defined in
the restructuring agreement.

During the 2024/2025 financial year, the Group continued its operations in two
production units on Saaremaa and in Aberdeen focusing primarily on the
production and sale of higher value-added fish products. The Group's sales
revenue increased by approximately 10% year-on-year, reaching EUR 18.8 million.
Growth was driven by both the United Kingdom market, which accounted for
approximately 74% of total sales, and the Estonian market, where sales increased
by about 12%. Sales growth was supported by the gradual recovery in demand for
premium-segment products and the rebound in exports.

The improvement in performance was also reflected in profitability indicators.
Gross profit increased by 0.8 million euros, reaching 4.0 million euros.
Although the Group's operating result remained negative, the operating loss
decreased significantly (-0.6 million euros compared to -3.3 million euros in
the previous year). Due to the IFRS requirement to measure post-restructuring
debt obligations initially at their fair value, a one-off financial income of
9.6 million euros was recognised from the restructuring, resulting in a net
profit of 7.3 million euros for the financial year. Without the impact of the
restructuring, the net result for the year would have been a loss of 1.8 million
euros, which nevertheless represents a significant improvement in operating
performance compared to the previous year.

The Saaremaa unit continued to increase production volumes and market share. In
addition to revenue growth, attention has been directed towards improving
efficiency and profitability. Demand for Saare Kala products has shown a
positive growth trend in both domestic and export markets.

The UK subsidiary, John Ross Jr (Aberdeen) Ltd, maintained positive
profitability and successfully continued to hold a strong market position.
Consistent efforts by the Scottish management and the strength of the brand have
ensured stable results despite challenges in the sector and fluctuations in raw
material prices.

The Management Board remains focused on restoring profitability and enhancing
operational efficiency. The goal is to utilise the stability achieved through
the restructuring to increase operating cash flows, thereby strengthening the
capital base and value of the Group's companies and supporting the achievement
of the restructuring objectives.

We would like to thank all our employees, partners, and investors for their
dedication, trust, and perseverance. The difficult decisions and restructuring
efforts of recent years have laid the foundation for a stronger Group and
ensured the company's continued operations.

Differences from the Q4 and 12-Month Interim Report for 2024/2025

AS PRFoods published its Q4 and 12-month interim report for the 2024/2025
financial year on 29.08.2025. The interim report showed a net loss for the
financial year of 1,658 thousand euros. However, the audited annual report
discloses a net profit of 7,339 thousand euros.

The significant improvement in the result is due to the fact that, at the time
of publishing the interim report, the Management Board had not yet fully
completed its IFRS-mandated obligation to measure post-restructuring debt
obligations at their fair value. As there were multiple restructured debt
obligations with differing terms, and determining fair value involves
significant management judgements, consultation with experts, and auditor
review, this represented a key focus area where the Management Board sought
sufficient assurance.

Since the valuation was not completed at the time of the interim report
publication, the Management Board was unable to reflect the effects of the
restructuring in the Q4 and 12-month interim report. From the revaluation of
debt obligations, a one-off financial income of 9,578 thousand euros was
recognised.

Consolidated statement of financial position

EUR '000 30.06.2025 30.06.2024

ASSETS

Cash and cash equivalents 305 203

Trade and other receivables 1,546 2,212

Prepayments 182 173

Inventories 1,656 1,644

Total current assets 3,689 4,232

Long-term financial investments 0 418

Tangible assets 3,595 4,164

Intangible assets 12,956 13,102

Total non-current assets 16,552 17,684

TOTAL ASSETS 20,240 21,916

EQUITY AND LIABILITIES

Interest-bearing liabilities 971 10,899

Trade and other payables 1,563 2,559

Total current liabilities 2,534 13,458

Interest-bearing liabilities 5,514 3,600

Trade and other payables 30 0

Deferred tax liabilities 1,421 1,420

Government grants 213 247

Total non-current liabilities 7,179 5,267

TOTAL LIABILITIES 9,713 18,725

Share capital 7,737 7,737

Share premium 14,007 14,007

Treasury shares -390 -390

Statutory capital reserve 51 51

Currency translation differences 451 439

Retained profit (loss) -11,327 -18,653

Equity attributable to parent 10,528 3,191

Non-controlling interest 0 0

TOTAL EQUITY 10,528 3,191

TOTAL EQUITY AND LIABILITIES 20,240 21,916

Consolidated statement of comprehensive income

EUR '000 2024/2025 2023/2024

Revenue 18,782 17,086

Cost of goods sold -14,796 -13,888

Gross profit 3,986 3,198

Operating expenses -4,506 -4,623

Selling and distribution
expenses -2,810 -2,663

Administrative expenses -1,695 -1,960

Other income / expense                  -106                  -1,882

Operating profit (loss) -625 -3,307

Financial income / expenses 8,347 -1,057

Share of result of associates
and joint ventures -139 46

Profit (loss) from the sale of
the subsidiary 0 -271

Profit (Loss) before tax 7,583 -4,589

Income tax -244 -84

Net profit (loss) for the period 7,339 -4,673

Net profit (loss) attributable
to:

Owners of the Parent Company 7,339 -4,668

Non-controlling interests 0                   -4

Total net profit (loss) for the
period 7,339 -4,673

Other comprehensive income
(loss) that may subsequently be
classified to profit or loss:

Foreign currency translation
differences 12 -169

Total comprehensive income
(expense) 7,351 -4,842

Total comprehensive income
(expense) attributable to:

Owners of the Parent Company 7,351 -4,837

Non-controlling interests                    0                    -4

Total comprehensive income
(expense) for the period 7,351 -4,842

Kristjan Kotkas Timo Pärn

Member of the Management Board Member of the Management Board

[email protected]
(mailto:[email protected])

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