Consolidated Unaudited Interim Report Of AS Prfoods For The 1St Quarter And 3 Months Of 2024/2025 Financial Year

(MENAFN- GlobeNewsWire - Nasdaq) MANAGEMENT COMMENTARY

PRFoods' new financial year began with better results than the previous year. The first quarter is traditionally one of the more seasonally quiet periods in our field. Nevertheless, the first quarter's revenue reached 4.6 million euros, which is a 35.3% increase compared to the same time last year. The most significant sales growth was observed in Estonia, where revenue increased by 207.1%, reaching 1.5 million euros. Moderate growth was also seen in the UK market, where revenue rose by 6.4%, totalling 3.1 million euros.

EBITDA from operating activities turned positive, amounting to 0.1 million euros, compared to -0.5 million euros in the same quarter last year. The net loss for the first quarter of this financial year decreased by 0.4 million euros, amounting to 0.3 million euros compared to 0.7 million euros the previous year.

In challenging and volatile times, we must acknowledge that every improvement in efficiency metrics is a significant achievement for us. This confirms that the direction chosen to improve the company's profitability is the right one. These positive changes, in turn, have a favourable impact on the well-being of the company, its investors, and the group's employees.

High inflation and changes in consumer behaviour affect all food producers. In the organization of work at our Estonian production unit and the portfolio of products we offer, we need to find innovative solutions to provide consumers with quality fish products in suitable forms and at competitive prices. The VAT increase set to take effect at the beginning of the new calendar year will undoubtedly impact all Estonian producers and consumers.

Currently, we see that retail prices for fish products have stabilized or decreased, and we anticipate strong demand during the Christmas season. Stability, both in revenue and operations, is more important than volatility. Today's foundation is much stronger than in previous years. While we are smaller, we are also more efficient. However, there is still much work ahead to achieve the desired success.

The Management Board continues to work on mapping out restructuring options for PRFoods' debt obligations and preparing a corresponding proposal.

KEY RATIOS
INCOME STATEMENT

mln EUR, unless indicated otherwise	1Q 2024/2025	2023/2024	1Q 2023/2024	2022/2023
Sales	4.6	17.1	3.4	19.6
Gross profit	0.9	3.2	0.1	3.6
EBITDA from operations	0.1	-0.3	-0.5	0.3
EBITDA	0.1	-0.3	-0.1	0.3
EBIT	0.0	-3.3	-0.4	-1.0
EBT	-0.3	-4.6	-0.7	-0.4
Net profit (-loss)	-0.3	-4.7	-0.7	0.3
Gross margin	19.6%	18.7%	3.5%	18.3%
Operational EBITDA margin	2.2%	-2.0%	-13.6%	1.5%
EBITDA margin	2.2%	-2.0%	-3.1%	1.5%
EBIT margin	0.0%	-19.4%	-11.7%	-5.1%
EBT margin	-6.5%	-26.9%	-20.7%	2.0%
Net margin	-6.5%	-27.3%	-21.1%	1.5%
Operating expense ratio	19.6%	27.1%	25.4%	24.0%

BALANCE SHEET

mln EUR, unless indicated otherwise	30.09.2024	30.06.2024	30.09.2023	30.06.2023
Net debt	14.1	14.3	17.0	16.7
Equity	2.8	3.2	7.4	8.3
Working capital	-9.7	-9.2	0.2	0.0
Assets	21.8	21.9	29.3	30.2
Liquidity ratio	0.3x	0.3x	1.0x	1.0x
Equity ratio	12.8%	14.6%	25.2%	27.4%
Gearing ratio	83.4%	81.8%	69.7%	66.9%
Debt to total assets	0.9x	0.9x	0.8x	0.7x
Net debt to operating EBITDA	-199x	-42.5x	21.4x	55.8x
ROE	-144.6%	-81.4%	-9.2%	4.1%
ROA	-19.9%	-17.9%	-2.4%	1.0%

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EUR '000	30.09.2024	30.06.2024
ASSETS
Cash and cash equivalents	274	203
Trade and other receivables	1,852	2,212
Prepayments	163	173
Inventories	2,017	1,644
Total current assets	4,306	4,232

Long-term financial investments	418	418
Tangible assets	4,041	4,164
Intangible assets	13,084	13,102
Total non-current assets	17,544	17,684
TOTAL ASSETS	21,850	21,916

EQUITY AND LIABILITIES
Interest-bearing liabilities	10,896	10,899
Trade and other payables	3,059	2,559
Total current liabilities	13,955	13,458

Interest-bearing liabilities	3,469	3,600
Deferred tax liabilities	1,422	1,420
Government grants	203	247
Total non-current liabilities	5,095	5,267
TOTAL LIABILITIES	19,050	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	387	439
Retained profit (loss)	-18,992	-18,653
Equity attributable to parent	2,801	3,191
Non-controlling interest	0	0
TOTAL EQUITY	2,801	3,191
TOTAL EQUITY AND LIABILITIES	21,850	21,916

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

EUR '000	3m 2024/2025	3m 2023/2024
Revenue	4,621	3,411
Cost of goods sold	-3,747	-3,290
Gross profit	874	121

Operating expenses	-907	-867
Selling and distribution expenses	-612	-438
Administrative expenses	-296	-429
Other income / expense	-3	-9
Fair value adjustment on biological assets	0	358
Operating profit (loss)	-36	-398
Financial income / expenses	-265	-308
Profit (Loss) before tax	-301	-705
Income tax	-38	-14
Net profit (loss) for the period	-339	-719

Net profit (loss) attributable to:
Owners of the Parent Company	-339	-674
Non-controlling interests	0	-46
Total net profit (loss) for the period	-339	-720

Other comprehensive income (loss) that may subsequently be classified to profit or loss:
Foreign currency translation differences	-52	-196
Total comprehensive income (expense)	-391	-916

Total comprehensive income (expense) attributable to:
Owners of the Parent Company	-391	-870
Non-controlling interests	0	-46
Total comprehensive income (expense) for the period	-391	-916

Kristjan Kotkas Timo Pärn
Member of the Management Board Member of the Management Board
...

Attachment

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