Market announcement

Title

Consolidated Unaudited Interim Report of AS PRFoods for the 4th quarter and 12 months of 2023/2024 financial year

Message

MANAGEMENT COMMENTARY

PRFoods AS has embarked on changes during the past financial year. In the second
half  of the financial year, the structure  of our group changed - our developed
small  offshore fish farm in Saaremaa, Redstorm  OÜ, left the group. Our primary
focus is on developing production units in Estonia and the United Kingdom, while
we  continue to  innovate in  the creation  of fish  farms in  Estonia as a side
activity.
The  revenue  for  the  past  financial  year  decreased  by 13% compared to the
previous  year, but the turnover in the fourth quarter increased by 12% compared
to the same period last year. This growth was largely due to securing the market
positions of the Saaremaa production unit in various markets.
The  financial year  ended with  a revenue  of 17.09 million  euros, compared to
19.58 million  euros in the previous year. The profit from the sale of companies
in  the previous  financial year  has been  replaced by  a loss  of 2.78 million
euros.  We can  affirm that  the past  financial year  has been  one of the most
challenging  in our history. This was largely due to the cessation of sales from
the  Saaremaa production unit to  the Finnish export market  and the decision of
our partner there to terminate cooperation with us, transferring market share to
their  production units. This resulted in a complete absence of sales to Finland
until  2024. Considering that the  Saaremaa production unit  was a subcontractor
factory until February 2022, rebuilding the Saaremaa unit has been a significant
challenge.  We would like to commend our  sales and production teams in Saaremaa
for  their efforts. Their effective work is  reflected in the growth of turnover
and markets for the Saaremaa unit, as well as opportunities in export markets.
While   the   successful  rebuilding  of  the  Saaremaa  unit  from  scratch  is
commendable, we must also acknowledge our UK unit, which, despite crises and the
associated   volatile  situations,  has  maintained  its  market  positions  and
profitability. The Scottish management team has shown determination, maintaining
the level and development vision of the region's most renowned fish brand.
The  group enters the  new financial year  with a new  board and clear strategic
views,  which  also  include  the  presentation  of  a  restructuring plan and a
thorough  review of all historical processes.  The year will be challenging. For
instance,  managing cash flow will certainly be a challenge in the first half of
the  year. Although the group's debt burden has been reduced, the ratio is still
too high, so the continued support of shareholders is necessary.
The  situation is further complicated by the fluctuating economic environment in
Estonia,  where the VAT increase has significantly impacted consumption, and the
forecasted increase will affect food producers even more. We live in interesting
times,  and  in  many  economic  sectors,  particularly  those not subsidized or
protected by the state, one challenge is replaced by another.


KEY RATIOS
INCOME STATEMENT

+-------------------------+------------+---------+------------+---------+
|Mln EUR                  |Q4 2023/2024|2023/2024|Q4 2022/2023|2022/2023|
+-------------------------+------------+---------+------------+---------+
|Sales                    |        4.46|    17.09|        3.99|    19.58|
+-------------------------+------------+---------+------------+---------+
|Gross profit             |        0.56|      3.2|        0.39|     3.58|
+-------------------------+------------+---------+------------+---------+
|EBITDA from operations   |       -0.04|    -0.34|       -0.16|     0.30|
+-------------------------+------------+---------+------------+---------+
|EBITDA                   |       -0.03|    -0.34|       -0.01|     0.30|
+-------------------------+------------+---------+------------+---------+
|EBIT                     |       -0.52|    -1.41|       -0.29|    -0.97|
+-------------------------+------------+---------+------------+---------+
|EBT                      |       -0.71|    -2.68|       -0.55|    -0.40|
+-------------------------+------------+---------+------------+---------+
|Net profit (loss)        |       -0.71|    -2.78|       -0.50|     0.33|
+-------------------------+------------+---------+------------+---------+
|Gross margin             |      12.52%|   18.72%|       9.87%|   18.26%|
+-------------------------+------------+---------+------------+---------+
|Operational EBITDA margin|      -0.94%|   -1.97%|      -3.98%|    1.54%|
+-------------------------+------------+---------+------------+---------+
|EBITDA margin            |      -0.73%|   -1.97%|      -0.17%|    1.54%|
+-------------------------+------------+---------+------------+---------+
|EBIT margin              |     -11.71%|   -8.25%|      -7.31%|   -4.95%|
+-------------------------+------------+---------+------------+---------+
|EBT margin               |     -15.84%|  -15.66%|     -13.65%|    2.02%|
+-------------------------+------------+---------+------------+---------+
|Net margin               |     -15.83%|  -16.29%|     -12.62%|    1.69%|
+-------------------------+------------+---------+------------+---------+
|Operating expense ratio  |     -24.44%|  -27.06%|     -20.99%|  -23.97%|
+-------------------------+------------+---------+------------+---------+

BALANCE SHEET

+-------------------------------------+------------+------------+------------+
| Mln EUR, unless indicated otherwise | 30.06.2024 | 30.06.2023 | 30.06.2022 |
+-------------------------------------+------------+------------+------------+
| Net debt                            |       14.3 |       16.7 |       24.7 |
+-------------------------------------+------------+------------+------------+
| Equity                              |        5.1 |        8.3 |        8.1 |
+-------------------------------------+------------+------------+------------+
| Working capital                     |       -9.2 |        0.0 |       -3.2 |
+-------------------------------------+------------+------------+------------+
| Assets                              |       23.8 |       30.2 |       38.9 |
+-------------------------------------+------------+------------+------------+
| Liquidity ratio                     |       0.3x |       1.0x |       0.7x |
+-------------------------------------+------------+------------+------------+
| Equity ratio                        |      21.3% |      27.4% |      20.7% |
+-------------------------------------+------------+------------+------------+
| Gearing ratio                       |      73.8% |      66.9% |      75.4% |
+-------------------------------------+------------+------------+------------+
| Debt to total assets                |       0.8x |       0.7x |       0.8x |
+-------------------------------------+------------+------------+------------+
| Net debt to operating EBITDA        |     -42.4x |      55.8x |     -14.5x |
+-------------------------------------+------------+------------+------------+
| ROE                                 |     -41.7% |       4.1% |     -68.5% |
+-------------------------------------+------------+------------+------------+
| ROA                                 |     -10.3% |       1.0% |     -17.3% |
+-------------------------------------+------------+------------+------------+

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

+----------------------------------+------------+------------+
| EUR '000                         | 30.06.2024 | 30.06.2023 |
+----------------------------------+------------+------------+
| ASSETS                           |            |            |
+----------------------------------+------------+------------+
| Cash and cash equivalents        |        203 |        394 |
+----------------------------------+------------+------------+
| Receivables and prepayments      |      2,386 |      2,119 |
+----------------------------------+------------+------------+
| Inventories                      |      1,644 |      1,861 |
+----------------------------------+------------+------------+
| Biological assets                |          0 |        772 |
+----------------------------------+------------+------------+
| Total current assets             |      4,233 |      5,145 |
+----------------------------------+------------+------------+
|                                  |            |            |
+----------------------------------+------------+------------+
| Long-term financial investments  |        418 |        381 |
+----------------------------------+------------+------------+
| Tangible assets                  |      4,164 |      6,563 |
+----------------------------------+------------+------------+
| Intangible assets                |     14,999 |     18,157 |
+----------------------------------+------------+------------+
| Total non-current assets         |     19,582 |     25,101 |
+----------------------------------+------------+------------+
| TOTAL ASSETS                     |     23,815 |     30,246 |
+----------------------------------+------------+------------+
|                                  |            |            |
+----------------------------------+------------+------------+
| EQUITY AND LIABILITIES           |            |            |
+----------------------------------+------------+------------+
| Interest-bearing liabilities     |     10,899 |      2,111 |
+----------------------------------+------------+------------+
| Payables and prepayments         |      2,544 |      3,035 |
+----------------------------------+------------+------------+
| Total current liabilities        |     13,443 |      5,146 |
+----------------------------------+------------+------------+
|                                  |            |            |
+----------------------------------+------------+------------+
| Interest-bearing liabilities     |      3,599 |     15,024 |
+----------------------------------+------------+------------+
| Payables and prepayments         |          0 |          0 |
+----------------------------------+------------+------------+
| Deferred tax liabilities         |      1,446 |      1,466 |
+----------------------------------+------------+------------+
| Government grants                |        248 |        317 |
+----------------------------------+------------+------------+
| Total non-current liabilities    |      5,292 |     16,807 |
+----------------------------------+------------+------------+
| TOTAL LIABILITIES                |     18,736 |     21,953 |
+----------------------------------+------------+------------+
|                                  |            |            |
+----------------------------------+------------+------------+
| Share capital                    |      7,737 |      7,737 |
+----------------------------------+------------+------------+
| Share premium                    |     14,007 |     14,007 |
+----------------------------------+------------+------------+
| Treasury shares                  |      - 390 |       -390 |
+----------------------------------+------------+------------+
| Statutory capital reserve        |         51 |         51 |
+----------------------------------+------------+------------+
| Currency translation differences |        439 |        609 |
+----------------------------------+------------+------------+
| Retained profit (loss)           |    -16,765 |    -13,981 |
+----------------------------------+------------+------------+
| Equity attributable to parent    |      5,079 |      8,033 |
+----------------------------------+------------+------------+
| Non-controlling interest         |          0 |        260 |
+----------------------------------+------------+------------+
| TOTAL EQUITY                     |      5,078 |      8,293 |
+----------------------------------+------------+------------+
| TOTAL EQUITY AND LIABILITIES     |     23,815 |     30,246 |
+----------------------------------+------------+------------+

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

+--------------------------------------------------+-------------+-------------+
|EUR '000                                          |12m 2022/2023|12m 2022/2023|
+--------------------------------------------------+-------------+-------------+
|Revenue                                           |       17,086|       19,578|
+--------------------------------------------------+-------------+-------------+
|Cost of goods sold                                |      -13,887|      -16,003|
+--------------------------------------------------+-------------+-------------+
|Gross profit                                      |        3,199|        3,575|
+--------------------------------------------------+-------------+-------------+
|                                                  |             |             |
+--------------------------------------------------+-------------+-------------+
|Operating expenses                                |       -4,622|       -4,693|
+--------------------------------------------------+-------------+-------------+
|   Selling and distribution expenses              |       -2,662|       -2,691|
+--------------------------------------------------+-------------+-------------+
|   Administrative expenses                        |       -1,960|       -2,002|
+--------------------------------------------------+-------------+-------------+
|Other income / expense                            |           15|          150|
+--------------------------------------------------+-------------+-------------+
|Fair value adjustment on biological assets        |            0|            0|
+--------------------------------------------------+-------------+-------------+
|Operating profit (loss)                           |       -1,408|         -970|
+--------------------------------------------------+-------------+-------------+
|Financial income / expenses                       |       -1,266|        1,366|
+--------------------------------------------------+-------------+-------------+
|Profit (Loss) before tax                          |       -2,675|          396|
+--------------------------------------------------+-------------+-------------+
|Income tax                                        |         -108|          -65|
+--------------------------------------------------+-------------+-------------+
|Net profit (loss) for the period                  |       -2,783|          331|
+--------------------------------------------------+-------------+-------------+
|                                                  |             |             |
+--------------------------------------------------+-------------+-------------+
|Net profit (loss) attributable to:                |             |             |
+--------------------------------------------------+-------------+-------------+
|Owners of the Parent Company                      |       -2,780|          303|
+--------------------------------------------------+-------------+-------------+
|Non-controlling interests                         |           -4|           28|
+--------------------------------------------------+-------------+-------------+
|Total net profit (loss) for the period            |       -2,784|          331|
+--------------------------------------------------+-------------+-------------+
|                                                  |             |             |
+--------------------------------------------------+-------------+-------------+
|Other comprehensive income (loss) that may        |             |             |
|subsequently be classified to profit or loss:     |             |             |
+--------------------------------------------------+-------------+-------------+
|Foreign currency translation differences          |         -169|         -231|
+--------------------------------------------------+-------------+-------------+
|Total comprehensive income (expense)              |       -2,953|          101|
+--------------------------------------------------+-------------+-------------+
|                                                  |             |             |
+--------------------------------------------------+-------------+-------------+
|Total comprehensive income (expense) attributable |             |             |
|to:                                               |             |             |
+--------------------------------------------------+-------------+-------------+
|Owners of the Parent Company                      |       -2,949|           73|
+--------------------------------------------------+-------------+-------------+
|Non-controlling interests                         |           -4|           28|
+--------------------------------------------------+-------------+-------------+
|Total comprehensive income (expense) for the      |             |             |
|period                                            |       -2,953|          101|
+--------------------------------------------------+-------------+-------------+

Kristjan Kotkas                                        Timo Pärn
Member of the Management Board                                Member of the
Management Board
investor@prfoods.ee
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