Consolidated Unaudited Interim Report of AS PRFoods for the 2nd quarter and 6 months of 2020/2021 financial year

Consolidated Unaudited Interim Report of AS PRFoods for the 2nd quarter and 6 months of 2020/2021 financial year




Consolidated Unaudited Interim Report of AS PRFoods for the 2nd quarter and 6 months of 2020/2021 financial year

MANAGEMENT COMMENTARY

Second half of 2020 is characterized by continuation of COVID crisis. Salmon prices are 12-year low and compared to the same period last year, salmon prices are down 38% and rainbow trout is down by 22.5%. Adding to this global decrease in demand due to shutdown of HoReCa and you can call the situation as „perfect storm“. Companies who emerge from this crisis unscathed will be future winners. Arrival of vaccines is giving hope that we can see some normalization during 2nd half of 2021. 2022 will definitely be more profitable year in Fish farming as farmers can plan better the demand. Today’s farming volumes were planned before crisis and therefore there is massive oversupply in the market and most Fish farmers operate either at loss or at break-even. John Ross Jr has shown extraordinary resilience in current crisis and is forecasted to end current financial year with similar result as to year before, gross margin of the business has risen over 50%. Estonian operations and cost base has been adjusted to the changed market situation. Unfortunately we cannot say the same about Finland and we plan to carry out significant restructuring of Finnish business during Q1.

The group ended Q4 already in profit, but due to significantly lower sales, our operational EBITDA margin was 3.4% compared to 8.4% year before (consolidated EBITDA margin 4.1% and 5.3% accordingly). Production cost base cannot be adjusted to such drastic market changes without bigger restructuring. Yet we have managed to decrease costs in Finnish unit by 75,000 euros per month from beginning of the year and see further avenues for decreasing costs. At the same time we cannot ignore the fact that sales need to be recovered, particularly in Finland.

The focus in the beginning of the year is to adjust cost base to the market situation, improving liquidity of the business and larger focus in Baltics and Scandinavia on Fish farming which continues to be the most promising area in business. John Ross Jr has adjusted extremely well to the crisis and despite loss of some sales in first 6 months of current financial year, has increased its profitability due to lower raw material prices.

Thanks to lower cost base, we believe, that we will finish 2020/2021 II half and entire financial year with positive EBITDA.

 

KEY RATIOS

INCOME STATEMENT 

mln EUR 4Q 2020 3Q 2020 2Q 2020 1Q 2020 4Q 2019 3Q 2019 2Q 2019 1Q 2019
Sales 17.0 12.7 15.1 18.5 25.4 19.3 21.5 18.1
Gross profit 2.5 1.2 0.7 2.0 4.3 2.6 2.1 2.1
EBITDA from operations 0.6 -0.3 -0.4 0.0 2.1 0.7 0.3 0.2
EBITDA 0.7 -0.5 -0.4 -0.9 1.4 1.5 0.3 -0.5
EBIT 0.0 -1.1 -1.0 -1.4 0.7 1.0 -0.3 -1.0
EBT -0.1 -1.4 -1.2 -1.8 0.6 0.8 -0.4 -1.2
Net profit (-loss) -0.2 -1.4 -1.3 -1.7 0.5 0.6 -0.6 -1.2
Gross margin 14.9% 9.4% 4.6% 10.8% 17.0% 13.4% 9.8% 11.7%
Operational EBITDA margin 3.4% -2.6% -2.6% 0.1% 8.4% 3.8% 1.4% 1.1%
EBITDA margin 4.1% -3.8% -2.6% -4.6% 5.3% 7.6% 1.4% -2.5%
EBIT margin 0.2% -8.8% -6.4% -7.8% 2.9% 5.0% -1.2% -5.6%
EBT margin -0.6% -11.3% -8.1% -9.8% 2.2% 3.9% -2.0% -6.5%
Net margin -1.2% -11.3% -8.4% -9.2% 2.0% 2.9% -3.0% -6.6%
Operating expense ratio 15.6% 18.2% 13.9% 14.3% 12.5% 13.4% 11.7% 14.1%

BALANCE SHEET

mln EUR 31.12.2020 30.09.2020 30.06.2020 31.03.2020 31.12.2019 30.09.2019 30.06.2019
Net debt 21.9 21.5 20.7 17.0 17.8 19.9 20.5
Equity 18.6 18.5 19.8 21.6 23.3 22.8 21.9
Working capital -3.9 -4.4 -4.0 -2.5 -3.5 -3.0 -3.1
Assets 57.5 57.4 57.1 56.9 60.5 62.4 62.5
Liquidity ratio 0.8x 0.8x 0.8x 0.9x 0.9x 0.9x 0.9x
Equity ratio 32.4% 32.3% 34.7% 37.9% 38.5% 36.5% 35.0%
Gearing ratio 54.0% 53.7% 51.1% 44.0% 43.3% 46.6% 48.3%
Debt to total assets 0.7x 0.7x 0.7x 0.6x 0.6x 0.6x 0.7x
Net debt to EBITDA op 160.0x 12.8x 7.5x 5.3x 5.3x 5.4x 5.1x
ROE -21.9% -7.0% -9.1% -5.7% -3.2% -4.5% -6.5%
ROA -7.8% -2.4% -3.2% -2.1% -1.2% -1.6% -2.3%

 

Consolidated Statement of Financial Position

Thousand euros 31.12.2020 31.12.2019 30.06.2020
ASSETS      
Cash and cash equivalents 962 2 680 2 276
Receivables and prepayments 4,153 6,342 3,578
Inventories 9,627 9,104 7,884
Biological assets 3,702 4,354 4,249
Total current assets 18,444 22,480 17,987
       
Deferred income tax 21 66 54
Long-term financial investments 232 217 232
Tangible fixed assets 15,968 14,444 16,179
Intangible assets 22,841 23,286 22,672
Total non-current assets 39,062 38,013 39,137
TOTAL ASSETS 57,506 60,493 57,124
       
EQUITY AND LIABILITIES      
Loans and borrowings 9,634 12,505 10,611
Payables 12,469 13,301 11,132
Government grants 212 188 211
Total current liabilities 22,315 25,994 21,954
       
Loans and borrowings 13,254 7,945 12,368
Payables 596 190 190
Deferred tax liabilities 1,912 2,070 1,920
Government grants 785 981 873
Total non-current liabilities 16,547 11,186 15,351
TOTAL LIABILITIES 38,862 37,180 37,305
       
Share capital 7,737 7,737 7,737
Share premium 14,197 14,007 14,007
Treasury shares -390 -390 -390
Statutory capital reserve 51 51 51
Currency translation reserve -98 167 -366
Retained profit (-loss) -3,246 1,108 -1,654
Equity attributable to parent 18,252 22,680 19,385
Non-controlling interest 392 633 434
TOTAL EQUITY 18,644 23,313 19,819
TOTAL EQUITY AND LIABILITIES 57,506 60,493 57,124

 

Consolidated Statement of Profit or Loss And Other Comprehensive Income

Thousand euros 2Q 2020/2021 2Q 2019/2020 6 months 2020/2021 6 months 2019/2020
Sales 17,029 25,374 29,766 44,703
Cost of goods sold -14,496 -21,049 -26,033 -37,796
Gross profit 2,533 4,325 3,733 6,907
         
Operating expenses -2,663 -3,169 -4,985 -5,767
Selling and distribution expenses -1,809 -2,146 -3,367 -3,938
Administrative expenses -854 -1,023 -1,618 -1,829
Other income / expense 46 206 137 334
Fair value adjustment on biological assets 118 -622 24 224
Operating profit (loss) 34 740 -1,091 1,698
Financial income/-expenses -129 -190 -438 -393
Profit (loss) before tax -95 550 -1,529 1,305
Income tax -101 -54 -105 -239
Net profit (loss) for the period -196 496 -1,634 1,066
         
Net profit (loss) attributable to:        
Owners of the company -190 529 -1,592 1,042
Non-controlling interests -6 -33 -42 24
Total net profit (loss) -196 496 -1,634 1,066
         
Other omprehensive income (loss) that may subsequently be classified to profit or loss:        
Foreign currency translation differences 169 66 268 381
Total comprehensive income (expense) -27 562 -1,366 1,447
         
Total comprehensive income (expense) attributable to:        
Owners of the Company -21 595 -1,324 1,423
Non-controlling interests -6 -33 -42 24
Total comprehensive income (expense) for the period -27 562 -1,366 1,447
         
Profit (loss) per share (EUR) 0.00 0.01 -0.04 0.03
         
Diluted profit (loss) per share (EUR) 0.00 0.01 -0.04 0.03

 

Indrek Kasela

AS PRFoods

Member of the Management Board

Phone:+372 452 1470

investor@prfoods.ee

www.prfoods.ee

 

 

 

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