Announcement View
Company AS PRFoods
Type Company Release
Category Other corporate action
Publicize date 14 Oct 2021 14:07:57 +0300
Languages
Kell English
Currency
Title PRF: AS PRFoods’ unaudited preliminary consolidated turnover of the 1st quarter and 3 months of the 2021/2022 financial year
Content
PRFoods' unaudited preliminary consolidated turnover in the 1(st) quarter of the
financial  year  of  2021/2022 amounted  to  14.32 million  euros, a increase by
12.8% compared to the same period a year ago (1Q 2020/2021: 12.7 million euros),
including sales increase in wholesale by 63.3% and in HoReCa by 16.8%. The sales
of  fresh fish and  fillets' product and  smoked products increased by 30.7% and
11.6% respectively  compared to the first quarter of the previous year. Compared
to  the previous quarter i.e. the  4(th) quarter of the previous financial year,
the  sales decreased by 2.85%, (4Q  2020/2021: 14.74 million euros), with retail
and  wholesale sectors declining by 8.8% and 8.3% respectively, whereas sales in
HoReCa sector increased by 10.6%.

Indrek Kasela, CEO, PRFoods:

?As   the   acute  corona  crisis  is  subduing,  we  have  entered  the  period
characterised by inflation, resumed and increased demand and drastic rise in raw
material  prices.  Energy  prices  have  not  had significant impact on PRFoods,
considering  for example  that John  Ross Jr  used traditional  closed wood chip
burning kilns, we can say that we are pioneers in CO2 neutral smoking of fish.
More  expensive raw material supports significantly our own fish farming. At the
same time we must remember that price increases will happen only in next year in
Finland,  as most contracts are priced until  end of the year already. Therefore
last  quarter was marked  by high raw  material prices and  sale prices remained
stagnant.  We have  significantly increased  sales prices  in all  of our client
groups.  Most certainly the price increases will  be passed on to end customers.
With  high probability the  high fish prices  will remain throughout of 2022 and
therefore   we  can  say  that  we  resume  our  normal  rhythm  of  operations.
Restructuring  of Finnish  operations is  continuing as  planned, bringing about
transfer  of  significant  portion  of  production  to Estonia and the number of
employees  in Finland is cut drastically.  One-off expensed related to this will
occur in this quarter.
Sales in UK and Estonia grow as expected. We have reduced production in products
that  are still loss-making. Decrease  in Estonian sales is  related to the fact
that  Estonia inbound tourism  is still not  functioning, as Estonian government
has  repeatedly managed  to be  first among  countries lagging behind in dealing
with corona, thus negative affecting HoReCa sector."


In  the first quarter of  the financial year, the  sales increased in fresh fish
and  fillets' product and  smoked products product  groups compared to the first
quarter  of the previous  financial year. The  sales of fresh  fish and fillets'
product  group that formed 37.4% of the product portfolio (1Q 2020/2021: 32.3%)
sales increased by 30.7% compared to the first quarter of the previous financial
year.  The sales of smoked  products that accounted for  about half of the total
sales (1Q 2020/2021: 49.6%) increased by 11.6% over the financial years.

+-----------------------------------+--------+--------+-----------+---------+
|Turnover by product groups, mln EUR|1Q 21/22|1Q 20/21|Change, EUR|Change, %|
+-----------------------------------+--------+--------+-----------+---------+
|Fresh fish and fillets             |5.36    |4.10    |1.26       |30.7%    |
+-----------------------------------+--------+--------+-----------+---------+
|Smoked products                    |7.03    |6.30    |0.73       |11.6%    |
+-----------------------------------+--------+--------+-----------+---------+
|Other fish products                |1.93    |2.30    |-0.37      |-16.1%   |
+-----------------------------------+--------+--------+-----------+---------+
|Total                              |14.32   |12.70   |1.62       |12.8%    |
+-----------------------------------+--------+--------+-----------+---------+


By  customer groups. the sales  declined in retail chains  by 9.7, in HoReCa and
wholesale  sectors the increase was  16.8% and 63.3%. respectively. The share of
retail  chains'  sales  of  the  financial  year's total sales was ca 46.6%. and
HoReCa  and wholesale accounted for  20.4% and 27.4%, respectively. In the first
quarter  of  the  previous  financial  year.  the  customer groups accounted for
58.3%. 19.7% and 18.9%. respectively.

+----------------------------------+--------+--------+-----------+---------+
|Turnover by client groups. mln EUR|1Q 21/22|1Q 20/21|Change. EUR|Change. %|
+----------------------------------+--------+--------+-----------+---------+
|Retail chains                     |    6.68|    7.40|      -0.72|    -9.7%|
+----------------------------------+--------+--------+-----------+---------+
|Wholesale                         |    3.92|    2.40|       1.52|    63.3%|
+----------------------------------+--------+--------+-----------+---------+
|HoReCa                            |    2.92|    2.50|       0.42|    16.8%|
+----------------------------------+--------+--------+-----------+---------+
|Other revenue                     |    0.80|    0.40|       0.40|   100.0%|
+----------------------------------+--------+--------+-----------+---------+
|Total                             |   14.32|   12.70|       1.62|    12.8%|
+----------------------------------+--------+--------+-----------+---------+


The  three largest  markets had  an aggregated  turnover of  13.22 million euros
accounting  for 92.3% of total sales in  the 1(st) quarter of the financial year
compared  to the sales of 11.3 million euros  and the share of 89.0% in the same
period a year ago. The sales to Latvia continue to account for the largest share
of sales to other countries.

+------------------------------+--------+--------+-----------+---------+
|Turnover by countries. mln EUR|1Q 21/22|1Q 20/21|Change. EUR|Change. %|
+------------------------------+--------+--------+-----------+---------+
|Finland                       |    9.36|    7.80|       1.56|    20.0%|
+------------------------------+--------+--------+-----------+---------+
|Great Britain                 |    2.62|    2.00|       0.62|    31.0%|
+------------------------------+--------+--------+-----------+---------+
|Estonia                       |    1.24|    1.40|      -0.16|   -11.4%|
+------------------------------+--------+--------+-----------+---------+
|Other countries               |    1.10|    1.50|      -0.40|   -26.7%|
+------------------------------+--------+--------+-----------+---------+
|Total                         |   14.32|   12.70|       1.62|    12.8%|
+------------------------------+--------+--------+-----------+---------+


Indrek Kasela
AS PRFoods
Member of the Management Board
Phone: +372 452 1470
investor@prfoods.ee
www.prfoods.ee