PRFoods' unaudited preliminary consolidated turnover in the 1(st) quarter of the
financial year of 2020/2021 amounted to 12.74 million euros, a decrease by
34.0% compared to the same period a year ago (1Q 2019/2020: 19.32 million
euros), including sales decrease in retail sector by 1.2%, in HoReCa by 52.2%
and in wholesale by 60.8%. Compared to the previous quarter i.e. the 4(th)
quarter of the previous financial year, the sales decreased by 15.7%, (4Q
2019/2020: 15.11 million euros), with retail and wholesale sectors declining by
19.6% and 35.0% respectively, whereas sales in HoReCa sector increased by 37.7%.
Indrek Kasela, CEO, PRFoods:
?The impact of COVID-19 continues in fish sector and as we noted in last sales
announcement, HoReCa sector which gives ca 1/3 of salmon- and troutbusiness both
globally and regionally, will not recover to previous levels in next 12 months.
To some extent this is offset by retail, but not in adequate amount. This has
created a situation where there is too much fish and production capacities in
the market, forcing lot of producers to cut prices. During last quarter we
forewent to large extent fresh fish trading in Finland, as it would have tied
too much of our working capital in situation where market demand is unstable and
fish trading margins are low. Although we saw increased activity in June-July,
the onset of so called second wave forced several countries to impose
restrictions on HoReCa. Luckily we see faster recovery in Asia compared to rest
of the world and as positive sign we managed to initiate high volume exports to
Japan from end of last quarter. This year we will see contraction in Finland,
growth in Baltics, particularly in Estonia, where we have achieved significant
market share in very short time. John Ross Jr has managed very well during the
crisis and kept its profitability and price levels despite some decrease in
sales. The situation is more problematic in Finland, where retail has been
concentrated in the hands of two largest retail chains and vast majority of fish
products on the market are private label. The decrease of Finnish sales is
attributable to reduced fresh fish trading and lower prices of products, as the
raw material has also cheapened - this is symptomatic to market, where private
label commands the market share. We will critically assess our cost base to be
in line with decreased sales and we will decrease share of Finnish business in
our sales and expenses."
In the first quarter of the financial year, the sales declined in all product
groups compared to the first quarter of the previous financial year. The sales
of fresh fish and fillets' product group that formed 32.4% of the product
portfolio (1Q 2019/2020: 41.8%) nearly halved 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 2019/2020: 42.0%) declined by 22.3% over the
financial years.
+-----------------------------------+--------+--------+-----------+---------+
|Turnover by product groups, mln EUR|1Q 20/21|1Q 19/20|Change, EUR|Change, %|
+-----------------------------------+--------+--------+-----------+---------+
|Fresh fish and fillets |4.12 |8.07 |-3.95 |-48.9% |
+-----------------------------------+--------+--------+-----------+---------+
|Smoked products |6.30 |8.11 |-1.81 |-22.3% |
+-----------------------------------+--------+--------+-----------+---------+
|Other fish products |2.31 |3.11 |-0.81 |-25.9% |
+-----------------------------------+--------+--------+-----------+---------+
|Other revenue |0.01 |0.02 |-0.01 |-59.7% |
+-----------------------------------+--------+--------+-----------+---------+
|Total |12.74 |19.32 |-6.57 |-34.0% |
+-----------------------------------+--------+--------+-----------+---------+
By customer groups, the sales declined in retail chains by 1.2%, in HoReCa and
wholesale sectors the decline was 52.2% and 60.8%, respectively. The share of
retail chains' sales of the financial year's total sales was ca 60%, and HoReCa
and wholesale accounted for ca 20% each. In the first quarter of the previous
financial year, the customer groups accounted for 41.3%, 24.% and 33.1%,
respectively.
+----------------------------------+--------+--------+-----------+---------+
|Turnover by client groups, mln EUR|1Q 20/21|1Q 19/20|Change, EUR|Change, %|
+----------------------------------+--------+--------+-----------+---------+
|Retail chains | 7.43| 7.52| -0.09| -1.2%|
+----------------------------------+--------+--------+-----------+---------+
|Wholesale | 2.40| 6.14| -3.74| -60.8%|
+----------------------------------+--------+--------+-----------+---------+
|HoReCa | 2.49| 5.20| -2.72| -52.2%|
+----------------------------------+--------+--------+-----------+---------+
|Other revenue | 0.42| 0.45| -0.03| -6.7%|
+----------------------------------+--------+--------+-----------+---------+
|Total | 12.74| 19.32| -6.57| -34.0%|
+----------------------------------+--------+--------+-----------+---------+
The three largest markets had an aggregated turnover of 11.25 million euros
accounting for 88.3% of total sales in the 1(st) quarter of the financial year
compared to the sales of 17.38 million euros and the share of 90.0% 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 20/21|1Q 19/20|Change, EUR|Change, %|
+------------------------------+--------+--------+-----------+---------+
|Finland | 7.83| 13.14| -5.31| -40.4%|
+------------------------------+--------+--------+-----------+---------+
|Great Britain | 2.01| 2.79| -0.77| -27.7%|
+------------------------------+--------+--------+-----------+---------+
|Estonia | 1.41| 1.46| -0.05| -3.4%|
+------------------------------+--------+--------+-----------+---------+
|Latvia | 0.51| 0.69| -0.18| -26.5%|
+------------------------------+--------+--------+-----------+---------+
|Other countries | 0.98| 1.24| -0.26| -20.9%|
+------------------------------+--------+--------+-----------+---------+
|Total | 12.74| 19.32| -6.57| -34.0%|
+------------------------------+--------+--------+-----------+---------+
Indrek Kasela
AS PRFoods
Member of the Management Board
Phone: +372 452 1470
investor@prfoods.ee
www.prfoods.ee
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