Market announcement
AS PRFoods
LEI code
529900PFXFO2ZDCRNK93
Size of the entity
Medium group
Economic activities
Financial and Insurance Activities
Country of registered office
Estonia
General information
Categories
Other price sensitive information
Unique data record identifier
3131
Submission date and time
24.11.2010 01:32:58
Content of announcement in English
Title
PRF: AS Premia Foods unaudited financial results for 3rd quarter and 9 months of 2010
Message
Premia Foods Quarterly report 24.11.2010
AS Premia Foods unaudited financial results for 3rd quarter and 9 months of 2010
SUMMARY OF FINANCIAL RESULTS
The third quarter of 2010 showed the company positive growing tendency. Sales
revenue increased by 19.3%, mainly due to the successful ice cream sales in all
target markets. The fall-behind of sales results of frozen food products
compared to the figures of 2009 is decreasing, whereas the company has managed
to keep this segment profitable, and the profitability is comparable to the last
year. In the fish products segment, certain impacts of the fire accident could
be noted also in the third quarter.
While comparing the profitability to the same period of 2009, the re-evaluation
of real estate by 30 million kroons having one-time positive impact on the
profit of the third quarter of 2009.
During 9 months, the company earned 56.8 million kroons of net profit.
9 months' EBITDA was 125.5 million kroons (8.0 million euros). The growth of
EBITDA after elimination of the extraordinary real estate profit was 50.2%, i.e.
41.9 million kroons (2.7 million euros).
The successful completion of the refinancing of the company's loan portfolio in
the third quarter of 2010 further strengthened the company's financial position
and enabled to improve the liquidity ratio and will enable to save from
financial cost approximately 6 million kroons per year.
The main figures per quarters of the group have been indicated in the following
table:
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| KEY | Q1 | Q2 | Q3 | 9m | Q1 | Q2 | Q3 | 9m |
| FIGURES | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Sales | 234.4 | 333.0 | 363.4 | 930.8 | 223.1 | 299.6 | 304.6 | 827.3 |
| (EEK mln) | | | | | | | | |
--------------------------------------------------------------------------------
| Gross profit| 46.8 | 81.5 | 106.5 | 234.8 | 49.1 | 84.1 | 85.4 | 218.6 |
| (EEK mln) | | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA | 0.0 | 68.8 | 56.7 | 125.5 | -3.1 | 37.5 | 79.2 | 113.6 |
| (EEK mln) | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT | -14.3 | 54.4 | 38.9 | 79.1 | -18.9 | 21.7 | 67.6 | 70.4 |
| (EEK mln) | | | | | | | | |
--------------------------------------------------------------------------------
| Net profit | -17.9 | 46.5 | 28.1 | 56.8 | -26.2 | 13.4 | 56.2 | 43.4 |
| (EEK mln) | | | | | | | | |
--------------------------------------------------------------------------------
| Gross | 20.0% | 24.5% | 29.3% | 25.2% | 22.0% | 28.1% | 28.0% | 26.4% |
| margin | | | | | | | | |
--------------------------------------------------------------------------------
| EBITDA | 0.0% | 20.7% | 15.6% | 13.5% | -1.4% | 12.5% | 26.0% | 13.7% |
| margin | | | | | | | | |
--------------------------------------------------------------------------------
| EBIT margin | -6.1% | 16.3% | 10.7% | 8.5% | -8.5% | 7.2% | 22.2% | 8.5% |
--------------------------------------------------------------------------------
| Net margin | -7.6% | 14.0% | 7.7% | 6.1% |-11.7% | 4.5% | 18.4% | 5.2% |
--------------------------------------------------------------------------------
| Operating | 25.1% | 24.0% | 23.8% | 24.2% | 29.9% | 25.1% | 22.8% | 25.6% |
| exp ratio | | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| | 31.12 | 31.03 | 30.06 | 30.09 | 31.12 | 31.03 | 30.06 | 30.09 |
| | 2009 | 2010 | 2010 | 2010 | 2008 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Net debt | 289.7 | 315.1 | 160.0 | 145.5 | 308.5 | 323.4 | 315.3 | 300.8 |
| (EEK mln) | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 434.1 | 416.3 | 655.0 | 684.6 | 425.9 | 399.5 | 410.3 | 467.6 |
| (EEK mln) | | | | | | | | |
--------------------------------------------------------------------------------
| Assets | 983.1 | 976.5 |1166.5 |1108.1 |1028.3 | 959.1 |1015.7 | 1090.8 |
| (EEK mln) | | | | | | | | |
--------------------------------------------------------------------------------
| Liquidity | 1.15 | 1.12 | 1.50 | 2.08 | 1.06 | 1.01 | 1.16 | 1.16 |
| ratio | | | | | | | | |
--------------------------------------------------------------------------------
| Equity | 44% | 43% | 56% | 62% | 41% | 42% | 40% | 43% |
| ratio | | | | | | | | |
--------------------------------------------------------------------------------
| Gearing | 40% | 43% | 20% | 18% | 42% | 45% | 43% | 39% |
| ratio | | | | | | | | |
--------------------------------------------------------------------------------
EBITDA = earnings before financial items, tax, depreciation, and amortization
Gross margin = Gross profit / Sales revenue
EBITDA margin = EBITDA / Sales revenue
EBIT margin = EBIT / Sales revenue
Net profit margin = Net profit / Sales revenue
Operating expense ratio = Operating expenses / Sales revenue
Net debt = Interest-bearing liabilities - Cash and cash equivalents
Liquidity ratio Current assets / Short-term liabilities
Equity ratio = Equity / Total assets
Gearing ratio = Net debt / (Equity + Net debt)
3rd quarter
The turn-over of the group increased in the third quarter of 2010 by 19.3%, i.e.
by 58.8 million kroons (3.8 million euros) being 363.4 million kroons (23.2
million euros).
EBITDA for the referred period was 56.4 million kroons (3.6 million euros). As
the EBITDA of the 3rd quarter of 2009 included the one-off profit gained from
the re-evaluation of real estate in the amount of 30.0 million kroons (1.9
million euros), the comparable growth in EBITDA in 2010 was 15.2%, i.e. 7.5
million kroons (0.5 million euros).
The net profit for the 3rd quarter was 28.1 million kroons (1.8 million euros).
The most material events of the third quarter of 2010 were:
• On 1 September the group notified of the completion of restructuring of the
loan portfolio. As a result of the refinancing, the loan portfolio was
centralized into the parent company and the quality of the loan portfolio was
improved. The interest rate of the loans decreased from the previously paid
5.6% to approximately to 2.8% (6m Euribor+1.6%). The estimated accounting
savings from interests costs as per the current loan volumes and Euribor rate
is over six million kroons per year. The volume of the short-term liabilities
in the loan portfolio decreased from 46% to 18%.
• On 9 September the Supervisory Board of the group determined the composition
of the audit committee. The member of the Supervisory Board Aavo Kokk was
elected to be the chairman of the audit committee and Mairi Paiste a member
of the audit committee.
• During the meeting of the Supervisory Board held on 20 September, the Super-
visory Board decided to recall the member of the Management Board Andri
Avila from the Management Board. As of 2 November, the position of the CFO of
the company was assumed by the member of the Supervisory Board Erik Haavamäe.
• In the end of September, the company announced improvement in efficiency of
the fish production units as after the fire accident in the fish processing
unit in Uusikaupunki the company had an opportunity to analyze the locations
and production efficiency of the fish production units. As a result of
the relocation of the fish production units, the company saves approximately
3.1 million kroons from rental costs per year due to the fact that the
production activities in the rental premises in Uusikaupunki were ceased and
production was moved to the production facility located by the sales and
logistics center in Hämeenlinna.
9 months
The turn-over of AS Premia Foods was 930.8 million kroons (59.5 million euros)
having increased by 103.5 million kroons, i.e. by 12.5% per year.
The EBITDA for the referred period was 125.5 million kroons (8.0 million euros).
The growth in EBITDA comparable to the same period last year after eliminating
the one-time real estate profit was 50.2%, i.e. 41.9 million kroons (2.7 million
euros).
The net profit for the 9 months was 56.8 million kroons (3.6 million euros).
BUSINESS SEGMENTS ANALYSIS
The key figures of Premia Foods per segments for the period January - September
2010 (in million kroons):
--------------------------------------------------------------------------------
| Sales | Q1 | Q2 | Q3 | 9m | Q1 | Q2 | Q3 | 9m |
| (EEK mln ) | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Ice cream | 29.8 | 143.8 | 188.3 | 361.9 | 32.8 | 91.8 | 99.6 | 224.2 |
--------------------------------------------------------------------------------
| Frozen food | 78.5 | 80.3 | 75.4 | 234.2 | 93.8 | 92.0 | 85.7 | 271.5 |
--------------------------------------------------------------------------------
| Fish and |121.3 | 105.1 | 93.5 | 319.9 | 95.9 | 113.6 | 113.4 | 322.9 |
| fish products| | | | | | | | |
--------------------------------------------------------------------------------
| Other | 4.8 | 3.8 | 6.2 | 14.8 | 0.6 | 2.2 | 5.9 | 8.7 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross profit | Q1 | Q2 | Q3 | 9m | Q1 | Q2 | Q3 | 9m |
| (EEK mln) | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Ice cream | 11.8 | 58.8 | 78.6 | 149.2 | 13.3 | 43.8 | 44.3 | 101.4 |
--------------------------------------------------------------------------------
| Frozen food | 17.5 | 17.7 | 16.6 | 51.9 | 20.2 | 20.1 | 18.8 | 59.1 |
--------------------------------------------------------------------------------
| Fish and | 21.6 | -2.0 | 10.1 | 29.7 | 21.2 | 22.8 | 21.4 | 65.4 |
| fish products| | | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Gross margin | Q1 | Q2 | Q3 | 9m | Q1 | Q2 | Q3 | 9m |
| | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Ice cream | 40% | 41% | 42% | 41% | 41% | 48% | 44% | 45% |
--------------------------------------------------------------------------------
| Frozen food | 22% | 22% | 22% | 22% | 22% | 22% | 22% | 22% |
--------------------------------------------------------------------------------
| Fish and | 18% | -2% | 11% | 9% | 22% | 20% | 19% | 20% |
| fish products| | | | | | | | |
--------------------------------------------------------------------------------
Compared to the last year, the greatest growth, i.e. 89%, has been achieved in
the sales of ice cream. The sales of ice cream formed 52% of the turn-over of
the third quarter, whereas year ago the relevant proportion of ice cream was
33%. Growth of sales volumes in this segment has been supported by favorable
weather conditions in July and August and expansion of activities to the Russian
market.
Premia Foods continues as a market leader in the Baltic States, whereas in
addition to the long-term leading position in the Estonian market, the company
has according to the summer report by AC Nielsen, reached a leading position in
the Lithuanian ice cream market for the first time. Market shares in the
mentioned markets are respectively 40% and 21%. Second position is held in the
Latvian and St. Petersburg's market. The key to success in all markets are
strong brands, which has enabled to company to push the gross margin over 40%.
Ice cream market in the third quarter of 2010 may be characterized by evident
preference of cream ice cream. The above-mentioned is evidenced by the
non-competing first position of the cone ice cream „Eriti Rammus“ with the
record-making 5.7% market share and the great success of the brand “Klasika” in
Lithuania, which has contributed also into achieving the leader position in the
referred market.
In the ice cream segment, certain decrease of the gross profit margin may be
noticed in the third quarter and in the 9 months' period, the reasons of which
are increase of prices of raw materials, price pressure by the private labels of
retail chains in all the ice cream target markets and traditionally low gross
margins in Russia.
The main reason for the fall-behind of the sales of frozen food products in the
third quarter is the decreased purchase power and the access to fresh vegetables
growing during summer season, due to which the consumption of frozen vegetables
has decreased in all target markets. The gross margin of the segment has
remained stable through the quarters being around 22%.
The main reason for the drop in sales of fish products is the fire accident
occurred in the company's Uusikaupunki's fish production unit in Finland, which
mainly had impact on the sales of smoked fish products and compared to the last
year's same period the sales of the product group in question decreased by 27
million kroons in the third quarter. The high price of raw fish has also had an
impact on the sales of fresh fish in Estonia.
Despite to the decrease of sales turn-over, significant improvement of gross
margin may be noticed in the fish segment in the 3rd quarter but also during the
period of 9 months, which refers to the fact that the company is restoring its
sales volumes and product range after the fire accident occurred in spring and
has achieved good results despite to material increase of the prices of raw
fish..
ICE CREAM
--------------------------------------------------------------------------------
| EEK mln | Q1 | Q2 | Q3 | 9m | Q1 | Q2 | Q3 | 9m |
| | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Sales | 29.8 | 143.8 | 188.3 | 361.9 | 32.8 | 91.8 | 99.6 | 224.2 |
--------------------------------------------------------------------------------
| Gross profit | 11.8 | 58.8 | 78.6 | 149.2 | 13.3 | 43.8 | 44.3 | 101.4 |
--------------------------------------------------------------------------------
| EBITDA | 1.1 | 24.9 | 43.7 | 69.7 | 1.7 | 18.6 | 20.2 | 40.5 |
--------------------------------------------------------------------------------
| EBITDA margin| 4% | 17% | 23% | 19% | 5% | 20% | 20% | 18% |
--------------------------------------------------------------------------------
| Operating | -2.3 | 18.7 | 35.1 | 51.6 | -2.4 | 12.8 | 15.8 | 26.3 |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
Compared to relevant periods of 2009, successful launch of new products in all
target markets, favorable weather conditions and optimizing existing portfolio
enabled to earn materially increased gross profit and EBITDA in the third
quarter and during the first 9 months. EBITDA margin increased up to 23% in the
third quarter, which enabled to increase the EBITDA margin of the first 9 months
earned from the ice cream segment by one percent if compared to 2009.
FISH AND FISH PRODUCTS
--------------------------------------------------------------------------------
| EEK mln | Q1 | Q2 | Q3 | 9m | Q1 | Q2 | Q3 | 9m |
| | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Sales |121.3 | 105.1 | 93.5 | 319.9 | 95.9 | 113.6 | 113.4 | 322.9 |
--------------------------------------------------------------------------------
| Gross profit | 21.6 | -2.0 | 10.1 | 29.7 | 21.2 | 22.8 | 21.4 | 65.4 |
--------------------------------------------------------------------------------
| EBITDA | -0.5 | 44.0 | 18.5 | 62.0 | 0.6 | 16.4 | 26.3 | 43.4 |
--------------------------------------------------------------------------------
| EBITDA margin| 0% | 42% | 20% | 19% | 1% | 14% | 23% | 13% |
--------------------------------------------------------------------------------
| Operating | -4.7 | 39.9 | 14.2 | 49.4 | -3.2 | 12.4 | 22.4 | 31.6 |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
In the frames of the 9 months' period the insurance compensation received in the
2nd quarter has been sufficient to compensate the loss of profit of the company
and the extraordinary costs occurred. As from September the production of smoked
fish products has been partially restored in Hämeenlinna, Finland, and the
schedule of investments sets out reaching the full production capacity by the
end of this year. According to the plan of increasing the production efficiency
the chilled smoked products production will be relocated from Finland to the
company's main production unit in Saaremaa.
FROZEN FOOD
--------------------------------------------------------------------------------
| EEK mln | Q1 | Q2 | Q3 | 9m | Q1 | Q2 | Q3 | 9m |
| | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Sales | 78.5 | 80.3 | 75.4 | 234.2 | 93.8 | 92.0 | 85.7 | 271.5 |
--------------------------------------------------------------------------------
| Gross profit | 17.5 | 17.7 | 16.6 | 51.9 | 20.2 | 20.1 | 18.8 | 59.1 |
--------------------------------------------------------------------------------
| EBITDA | -4.4 | -1.4 | -0.4 | -6.2 | -5.6 | 0.3 | 4.3 | -1.0 |
--------------------------------------------------------------------------------
| EBITDA margin| -6% | -2% | -1% | -3% | -6% | 0% | 5% | 0% |
--------------------------------------------------------------------------------
| Operating | -8.5 | -3.6 | -3.2 | -15.3 | -10.6 | -2.9 | 2.5 | -11.0 |
| profit | | | | | | | | |
--------------------------------------------------------------------------------
Premia Foods has not yet reached the level of sales volumes of 2009 in this
segment. However, it is important to emphasize that sales of frozen food
products decreased in the third quarter of 2010 compared to the same period of
last year by 10.3 million kroons but the fall-behind of the frozen products
segment decreases for the second quarter in a row.
ANALYSIS BY GEOGRAPHIC MARKETS
--------------------------------------------------------------------------------
| Sales | Q1 | Q2 | Q3 | 9m | Q1 | Q2 | Q3 | 9m |
| (EEK mln ) | 2010 | 2010 | 2010 | 2010 | 2009 | 2009 | 2009 | 2009 |
--------------------------------------------------------------------------------
| Finland | 109.4 | 102.5 | 73.5 | 285.4 | 78.2 | 97.3 | 97.8 | 273.3 |
--------------------------------------------------------------------------------
| Estonia | 67.4 | 81.9 | 113.2 | 262.5 | 79.3 | 101.1 | 100.1 | 280.5 |
--------------------------------------------------------------------------------
| Latvia | 36.2 | 45.2 | 53.6 | 135.0 | 43.4 | 54.0 | 52.5 | 149.9 |
--------------------------------------------------------------------------------
| Lithuania | 20.6 | 48.9 | 55.1 | 124.6 | 18.9 | 46.1 | 52.8 | 117.8 |
--------------------------------------------------------------------------------
| Russia | 0.0 | 54.3 | 66.8 | 121.1 | 0.0 | 0.0 | 0.0 | 0.0 |
--------------------------------------------------------------------------------
| Other | 0.8 | 0.2 | 1.1 | 2.1 | 3.3 | 1.1 | 1.4 | 5.8 |
--------------------------------------------------------------------------------
By geographic markets, all three Baltic markets have indicated positive growth
tendency compared to the last year's same period, whereas the most positive is
the 2.3% growth in sales achieved in Latvia, which has mainly been brought about
by sales of ice cream. The positive impact of sales of ice cream is also evident
from the sales numbers of Estonia and Lithuania. Launch of new products and
brands was justified and helped to fight ongoing expansion of private labels.
The Finnish turnover in the third quarter was mostly influenced by the above-
mentioned fire accident in the production unit of smoked fish products. The
launch of innovative group of products “ISO-grilli” was successful and received
very warm welcome in Finland and was sold for 13 million kroons during the
summer. Premia Foods continues in the Finnish retail market of chilled packed
fish products sold under the brand “Heimon Gourmet” on the second position with
25% market share.
The sales of ice cream in St. Petersburg market in Russia were successful in the
third quarter and added additional turnover of 66.8 million kroons to the
company. Premia Foods continues to hold strong second position in the St.
Petersburg market with its 22% market share, whereas all ice creams of OOO
Khladokombinat No. 1 are cream ice creams and are produced following the GOST
standard.
During the first 9 months, good results have been achieved in the Finnish market
where despite to the simultaneous influence of many adverse factors the turnover
has, compared to the same period of last year, grown.
The best results of 9 months have been achieved in the Lithuanian market where
active sales of ice cream and courageous actions taken in the frozen food
segment have had an expected effect on growth of turnover.
The fall-behind of the Latvian market has occurred due to general poor situation
and the achieved 10% fall-behind compared to the turn-over results of the 9
months of 2009 could be, bearing in mind the circumstances in that market,
considered successful.
The fall-behind of the Estonian market has occurred due to the low point of the
market and also high prices of raw fish, which has had adverse effect on the
sales of fish in the Estonian retail market.
Russian results are reflected in the turn-over figures of the 9 months as from
May and the period from May to September 2010 could be considered satisfying as
the St. Petersburg's subsidiary OOO Khladokombinat No. 1 complied with the
ambitious targets set for this period.
FINANCIAL POSITION
The consolidated total assets of Premia Foods as at 30.09.2010 were 1.1 billion
kroons (70.9 million euros). As at the end of 2009, the total assets of Premia
Foods were 983.1 million kroons (62.8 million euros). Total assets decreased by
12.9%.
Analysis of the financial position must take into account the following:
• Public issue of shares in May 2010;
• Restructuring of loan portfolio in August 2010;
• Acquisition of subsidiaries OOO Khladokombinat No.1 and OOO Khladomagija in
Russia;
• Seasonality of ice cream and fish segment
Compared to 31.12.2009, the company's solvency has increased significantly and
the financial risk lowered. The company's working capital increased by 184.8
million kroons (11.8 million euros) during the first 9 months. The improvement
of the working capital reflects also in the improved liquidity ratio, which as
at 30.09.2010 was 2.08 (as at 31.12.2009 1.15). Financial leverage reflected as
proportion of net debt in the total capitalization decreased from 40% to 18%.
The volume of short-term borrowings in the loan portfolio decreased from 46% to
18%.
BALANCE SHEET ANALYSIS
The current assets of the company increased by 18.3% reaching 455.9 million
kroons (29.1 million euros).
The balance of cash and bank accounts increased 2.3 times up to 45.2 million
kroons (2.9 million euros). As a result of the refinancing completed in August
the company had as at 30.09.2010 additional undrawn loan and overdraft facility
limit in the amount of 67.3 million kroons (4.3 million euros).
Accounts receivables and prepayments decreased compared to the end of 2009 by
1.2%, i.e. 1.7 million kroons (0.1 million euros) reaching 132.4 million kroons
(8.5 million euros). The proportion of Russia in the receivables and prepayments
was 19.3 million kroons (1.2 million euros). The average debtors' collection
period decreased by 14%.
Stock increased compared to 30.09.2009 by 9.8%, i.e. by 24.8 million kroons (4.7
million euros) being 278.2 million kroons (17.8 million euros). The increase of
stock occurred due to the acquisition of OOO Khladokombinat No. 1, which had
stock balance of 24.4 million kroons (1.6 million euros) as at 30.09.2010.
The change in the stock as at the end of year has occurred due to seasonality of
growing cycle of biological assets, i.e. livestock of fish, which reaches its
peak by fall followed by significant harvesting during the fourth and the first
quarter.
Accounts payable increased in comparison with the end of 2009 by 5.6%, i.e. 7.3
million kroons (0.5 million euros) reaching 139 million kroons (8.9 million
euros).
Liabilities decreased altogether by 22.9%, i.e. 125.5 million kroons (8.0
million euros) down to 423.4 million kroons (27.1 million euros). The proportion
of short-term and long-term borrowings thereof is 190.7 million kroons (12.2
million euros) decreasing by 38%, i.e. by 118.6 million kroons (7.6 million
euros) during 9 months.
Equity of Premia Foods as at 30.09.2010 was 686.6 million kroons (43.9 million
euros) increasing by 58.2%, i.e. by 252.5 million kroons (16.1 million euros)
during 9 months.
INVESTMENTS
Capital expenditures into Premia Foods' tangible and intangible assets formed
18.6 million kroons (1.2 million euros) during the accounting period. The
investments included extraordinary investments related to the fire accident of
the fish production unit and relocation of production activities in the amount
of 5.9 million kroons (0.4 million euros). The investments made during the
accounting period have been granted target financing from the EU structure funds
in the amount of 2.1 million kroons. The volume of financial investments during
the period in question reached 54.3 million kroons (3.5 million euros) of which
46.5 million kroons (3.0 million euros) was the positive goodwill from the
acquisition of 100% shareholding in OOO Khladokombinat No. 1. The additional
equity acquired with the acquisition of Russian subsidiaries is 25.3 million
kroons (1.6 million euros).
PERSONNEL
As at 30 September 2010 Premia Foods employed altogether 876 persons including
248 people working for OOO Khladokombinat No. 1. As at 30 September 2009, the
group employed altogether 653 persons.
The total labor cost during the first 9 months of 2010 was 141.6 million kroons
(9.05 million euros). During 9 months of 2009, the total amount of labor cost
was 125.3 million kroons (8.01 million euros).
SHARES
Premia Foods AS is listed in the main list of NASDAQ OMX Stock Exchange as of 5
May 2010, the company has issued 38.7 million ordinary shares with the nominal
value of 10 kroons.
ISIN EE3100101031
Symbol of share PRF1T
Market BALTIC MAIN LIST
Nominal value 10.00 EEK
Issued shares 38,682,860
Listed shares 38,682,860
Listing date 05.05.2010
The movement of the share price (EEK) and transaction volumes (pcs) of Premia
Foods AS during the period of 5 May - 30 September 2010
1 EUR = 15,6466 EEK
Structure of shareholders
Major shareholders of Premia Foods AS as at 30 September 2010:
ING Luxembourg S.A. 62,34%
OÜ Rododendron 3,36%
Firebird Republics Fund Ltd. 3,09%
Ambient Sound Investments OÜ 2,59%
Skandinaviska Enskilda Banken Ab 2,29%
AS LHV Pank 2,27%
LHV Pensionifond 1,84%
Firebird Avrora Fund, Ltd. 1,68%
OÜ Footsteps Management 1,16%
OÜ Freespirit 1,00%
Skandinaviska Enskilda Banken Finnish Clients 0,97%
SEB Kasvufond 0,84%
Consolidated Statement of Financial Position
--------------------------------------------------------------------------------
| | EEK '000 | EUR '000 |
--------------------------------------------------------------------------------
| | 30.09 | 31.12 | 30.09 | 30.09 | 31.12 | 30.09 |
| | 2010 | 2009 | 2009 | 2010 | 2009 | 2009 |
--------------------------------------------------------------------------------
ASSETS
--------------------------------------------------------------------------------
| Cash and cash | 45,222 | 19,618 | 30,539 | 2,890 | 1,254 | 1,952 |
| equivalents | | | | | | |
--------------------------------------------------------------------------------
| Receivables and | 132,414 | 134,070 | 136,140 | 8,463 | 8,569 | 8,701 |
| prepayments | | | | | | |
--------------------------------------------------------------------------------
| Inventories | 278,228 | 205,164 | 253,424 |17,782 |13,112 |16,197 |
--------------------------------------------------------------------------------
| Fixed assets held | 145 | 26,721 | 26,382 | 9 | 1,708 | 1,686 |
| for sale | | | | | | |
--------------------------------------------------------------------------------
| Total current assets | 456,009 | 385,573 | 446,485 |29,144 |24,643 |28,536 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Deferred income tax | 5,719 | 5,541 | 5,541 | 366 | 354 | 354 |
--------------------------------------------------------------------------------
| Long-term financial | 1,584 | 1,507 | 1,417 | 101 | 96 | 91 |
| investments | | | | | | |
--------------------------------------------------------------------------------
| Investments property | 32,600 | 32,600 | 32,592 | 2,084 | 2,084 | 2,083 |
--------------------------------------------------------------------------------
| Tangible fixed | 240,990 | 241,980 | 286,880 |15,402 |15,465 |18,335 |
| assets | | | | | | |
--------------------------------------------------------------------------------
| Intangible assets | 371,176 | 315,850 | 317,844 |23,722 |20,186 |20,314 |
--------------------------------------------------------------------------------
| Total non-current | 652,069 | 597,478 | 644,274 |41,675 |38,185 |41,177 |
| assets | | | | | | |
--------------------------------------------------------------------------------
| TOTAL ASSETS |1,108,078 | 983,051 |1,090,759 |70,819 |62,828 |69,713 |
--------------------------------------------------------------------------------
EQUITY AND LIABILITIES
--------------------------------------------------------------------------------
| Loans and borrowings | 35,102 | 159,556 | 171,703 | 2,243 |10,198 |10,974 |
--------------------------------------------------------------------------------
| Factoring payable | 45,492 | 42,754 | 51,836 | 2,907 | 2,732 | 3,313 |
--------------------------------------------------------------------------------
| Payables | 139,036 | 131,686 | 162,720 | 8,886 | 8,416 |10,400 |
--------------------------------------------------------------------------------
| Total current | 219,630 | 333,996 | 386,259 |14,036 |21,346 |24,687 |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Loans and borrowings | 155,587 | 149,731 | 159,601 | 9,944 | 9,569 |10,200 |
--------------------------------------------------------------------------------
| Long-term payable to | 0 | 17,226 | 20,853 | 0 | 1,101 | 1,333 |
| shareholders | | | | | | |
--------------------------------------------------------------------------------
| Deferred tax | 22,611 | 21,900 | 29,222 | 1,445 | 1,400 | 1,868 |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| Target financing | 25,615 | 26,085 | 27,225 | 1,637 | 1,667 | 1,740 |
--------------------------------------------------------------------------------
| Total non-current | 203,813 | 214,942 | 236,901 |13,026 |13,737 |15,141 |
| liabilities | | | | | | |
--------------------------------------------------------------------------------
| TOTAL LIABILITIES | 423,443 | 548,938 | 623,160 |27,062 |35,083 |39,828 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Share capital | 386,829 | 24,183 | 24,183 |24,723 | 1,546 | 1,546 |
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| Share premium | 227,085 | 398,688 | 398,688 |14,513 |25,481 |25,481 |
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| Treasury shares | -472 | -3,986 | -3,986 | -29 | -255 | -255 |
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| Currency translation | 6,149 | 1,415 | 2,126 | 393 | 90 | 136 |
| reserve | | | | | | |
--------------------------------------------------------------------------------
| Retained eamings | 65,044 | 10,003 | 42,954 | 4,157 | 639 | 2,745 |
--------------------------------------------------------------------------------
| Equity attributable | 684,635 | 430,303 | 463,965 |43,757 |27,501 |29,653 |
| to parent | | | | | | |
--------------------------------------------------------------------------------
| Non-controlling | 0 | 3,810 | 3,634 | 0 | 244 | 232 |
| interest | | | | | | |
--------------------------------------------------------------------------------
| TOTAL EQUITY | 684,635 | 434,113 | 467,599 |43,757 |27,745 |29,885 |
--------------------------------------------------------------------------------
| TOTAL EQUITY AND |1,108,078 | 983,051 |1,090,759 |70,819 |62,828 |69,713 |
| LIABILITIES | | | | | | |
--------------------------------------------------------------------------------
Consolidated Comprehensive Income Report
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| EEK '000 | Q3 2010 | Q3 2009 | 9m 2010 | 9m 2009 |
--------------------------------------------------------------------------------
| Sales | 363,421 | 304,603 | 930,813 | 827,278 |
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| Cost of goods sold | -256,967 | -219,174 | -696,029 | -608,692 |
--------------------------------------------------------------------------------
| Gross profit | 106,454 | 85,429 | 234,784 | 218,586 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating expenses | -86,644 | -69,600 | -225,379 | -211,564 |
--------------------------------------------------------------------------------
| Selling and distribution | -75,914 | -58,332 | -185,837 | -163,851 |
--------------------------------------------------------------------------------
| Administrative expenses | -10,730 | -11,268 | -39,542 | -47,713 |
--------------------------------------------------------------------------------
| Other income/expenses | -700 | 30,816 | 48,809 | 32,684 |
--------------------------------------------------------------------------------
| Fair value adjustment on | 19,837 | 20,959 | 20,856 | 30,737 |
| biological assets | | | | |
--------------------------------------------------------------------------------
| Operating profit | 38,947 | 67,604 | 79,070 | 70,443 |
--------------------------------------------------------------------------------
| Financial income | 3,319 | -2,892 | 5,211 | 606 |
--------------------------------------------------------------------------------
| Financial expenses | -9,049 | -3,335 | -20,880 | -20,728 |
--------------------------------------------------------------------------------
| Profit (loss) before tax | 33,217 | 61,377 | 63,401 | 50,321 |
--------------------------------------------------------------------------------
| Deferred income tax | -5,075 | -5,200 | -6,624 | -6,899 |
--------------------------------------------------------------------------------
| Net profit (loss) | 28,142 | 56,177 | 56,777 | 43,422 |
--------------------------------------------------------------------------------
Other comprehensive income (-loss)
--------------------------------------------------------------------------------
| Foreign currency | 1,454 | 4,023 | 4,734 | 2,288 |
| translation differences | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 1,454 | 4,023 | 4,734 | 2,288 |
| income | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | 29,596 | 60,200 | 61,511 | 45,710 |
| income | | | | |
--------------------------------------------------------------------------------
Net profit (loss) for the period attributable to:
--------------------------------------------------------------------------------
| Owners of the Company | 28,142 | 56,015 | 56,555 | 42,954 |
--------------------------------------------------------------------------------
| Non-controlling interest | 0 | 162 | 222 | 468 |
--------------------------------------------------------------------------------
| Total comprehensive | 28,142 | 56,177 | 56,777 | 43,422 |
| income for the period | | | | |
--------------------------------------------------------------------------------
Total comprehensive income (loss) attributable to:
--------------------------------------------------------------------------------
| Owners of the Company | 29,596 | 60,038 | 61,289 | 45,080 |
--------------------------------------------------------------------------------
| Non-controlling interest | 0 | 162 | 222 | 630 |
--------------------------------------------------------------------------------
| Total comprehensive | 29,596 | 60,200 | 61,511 | 45,710 |
| income for the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per share | 0.73 | 24.83 | 2.27 | 18.31 |
--------------------------------------------------------------------------------
| Diluted earnings per share| 0.73 | 24.83 | 2.27 | 18.31 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| EUR '000 | Q3 2010 | Q3 2009 | 9m 2010 | 9m 2009 |
--------------------------------------------------------------------------------
| Sales | 23,227 | 19,468 | 59,490 | 52,873 |
--------------------------------------------------------------------------------
| Cost of goods sold | -16,423 | -14,008 | -44,484 | -38,903 |
--------------------------------------------------------------------------------
| Gross profit | 6,804 | 5,460 | 15,006 | 13,970 |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Operating expenses | -5,538 | -4,448 | -14,404 | -13,521 |
--------------------------------------------------------------------------------
| Selling and distribution | -4,852 | -3,728 | -11,877 | -10,472 |
--------------------------------------------------------------------------------
| Administrative expenses | -686 | -720 | -2,527 | -3,049 |
--------------------------------------------------------------------------------
| Other income/expenses | -45 | 1,970 | 3,119 | 2,089 |
--------------------------------------------------------------------------------
| Fair value adjustment on | 1,268 | 1,340 | 1,333 | 1,964 |
| biological assets | | | | |
--------------------------------------------------------------------------------
| Operating profit | 2,489 | 4,322 | 5,054 | 4,502 |
--------------------------------------------------------------------------------
| Financial income | 212 | -185 | 333 | 39 |
--------------------------------------------------------------------------------
| Financial expenses | -578 | -213 | -1,334 | -1,325 |
--------------------------------------------------------------------------------
| Profit (loss) before tax | 2,123 | 3,924 | 4,053 | 3,216 |
--------------------------------------------------------------------------------
| Deferred income tax | -324 | -332 | -423 | -441 |
--------------------------------------------------------------------------------
| Net profit (loss) | 1,799 | 3,592 | 3,630 | 2,775 |
--------------------------------------------------------------------------------
Other comprehensive income (-loss)
--------------------------------------------------------------------------------
| Foreign currency | 93 | 257 | 303 | 146 |
| translation differences | | | | |
--------------------------------------------------------------------------------
| Other comprehensive | 93 | 257 | 303 | 146 |
| income | | | | |
--------------------------------------------------------------------------------
| Total comprehensive | 1,892 | 3,849 | 3,933 | 2,921 |
| income | | | | |
--------------------------------------------------------------------------------
Net profit (loss) for the period attributable to:
--------------------------------------------------------------------------------
| Owners of the Company | 1,799 | 3,582 | 3,616 | 2,745 |
--------------------------------------------------------------------------------
| Non-controlling interest | 0 | 10 | 14 | 30 |
--------------------------------------------------------------------------------
| Total comprehensive | 1,799 | 3,592 | 3,630 | 2,775 |
| income for the period | | | | |
--------------------------------------------------------------------------------
Total comprehensive income (loss) attributable to:
--------------------------------------------------------------------------------
| Owners of the Company | 1,892 | 3,839 | 3,919 | 2,881 |
--------------------------------------------------------------------------------
| Non-controlling interest | 0 | 10 | 14 | 40 |
--------------------------------------------------------------------------------
| Total comprehensive | 1,892 | 3,849 | 3,933 | 2,921 |
| income for the period | | | | |
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
| Basic earnings per share | 0.05 | 1.59 | 0.15 | 1.17 |
--------------------------------------------------------------------------------
| Diluted earnings per share| 0.05 | 1.59 | 0.15 | 1.17 |
--------------------------------------------------------------------------------
Additional information:
Kuldar Leis
Chairman of the Management Board
[email protected]
+372 6033800