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

Management interim statement or quarterly financial report

Unique data record identifier

6246

Submission date and time

18.08.2017 22:15:29

Content of announcement in Estonian

Title

PRF: AS-i PRFoods 2017. aasta 2. kvartali ja 6 kuu konsolideeritud auditeerimata vahearuanne

Message

Tallinn, Eesti, 2017-08-18 21:15 CEST (GLOBE NEWSWIRE) --
Ülevaade majandustegevusest

JUHTKONNA KOMMENTAAR

PRFoodsi esimene poolaasta oli väga huvitav. Ühelt poolt olime vastakuti
jätkuva ajalooliselt kõrgete toorkala hindadega, mis mõjutas meie kasumlikkust.
Teiselt poolt muutsime fundamentaalselt oma äri, lisades John Ross Jr. (JRJ) ja
Coln Valley Smokery Ltd. (CVS) oma gruppi. PRFoods teatas samuti Trio Trading
(Trio) omandamisest Soomes, tehingu peab kinnitama aktsionäride erakorraline
koosolek 28.08.2017. Konsolideeritud pro forma käive peaks ületama 100 miljoni
euro piiri 2017 aastal. PRFoods võib deklareerida, et on saavutanud olulise
teetähise oma strateegias, et arendada ettevõttest rahvusvaheline bränditud
premium kalatoodete valmistaja. JRJ ja CVS on ennast tõestanud kui juhtivad
rahvusvahelised Šoti lõhetoodete valmistajad, mis on saavutanud kõrge
tunnustuse nii kodu- kui välisturgudel. JRJ kannab väga ihaldatud ning
eksklusiivset Kuningliku Garantii märki ja pärjati Suurbritannia olulisema
kaubandusauhinnaga Queen’s Award ekspordi eest 2016. 

19.07.2017 kiitsid PRFoods aktsionärid 85% JRJ ja CVS aktsiate omandamise
heaks. JRJ ja CVS majandusaasta lõppes 30.06.2017. Majandusaasta 2016-2017
konsolideeritud auditeerimata käive oli 19,7 miljonit eurot, korrigeeritud
EBITDA 2,4 miljonit eurot, puhaskasum +1,3 miljonit eurot ja netovõlg -0,8
miljonit eurot. 

Omandatud ettevõtted mitte ainult ei tugevda meie brändiportfelli, vaid peaksid
oluliselt parandama meie kasumlikkust edaspidiselt. Trio omandamine aitab meil
konsolideerida ja muuta kasumlikumaks meie senist koduturgu Soomet ning
võimaldab meile täiendavat tootmisvõimsust ekspordi kasvuks. Me eeldame, et
grupi CAPEX väheneb võttes arvesse meie viie erineva tootmisplatvormi
omavahelisi olulisi ja koheseid sünergiaid. 

PRFoodsi käive kasvas teises kvartalis 33,9% ja jõudis 13,1 miljoni euro
tasemele. Sellest olulisem oli, et suutsime 19,7% võrra parandada oma
brutomarginaali võrreldes 2016. aasta sama perioodiga tasemele 7,5% (2kv 2016:
6,3%). 

EBITDA äritegevusest paranes 200 000 euro võrra aasta baasil ning oli -0,1
miljonit (2kv 2016: -0,3 miljonit), ilma ühekordsete kuludeta mis olid seotud
tehingutega, oli EBITDA kasv 400 000 eurot. 

Teise kvartali puhaskahjum oli -0,1 miljonit eurot võrreldes +0,04 miljoni
euroga aastal 2016. Ilma ühekordsete kuludeta kasvas kasum 100 000 eurot
võrreldes 2016. aasta teise kvartaliga. 

Kuigi me oleme mõõdukalt rahul tulemuste paranemisega, usume, et meil on ruumi
parandada oluliselt oma tulemuslikust teisel poolaastal, kuna tooraine hinnad
hakkasid langema alles teise kvartali lõpus ja müügihindade tõus toimus mais.
Teise kvartali jahe ilm mõjutas negatiivselt meie kalakasvatuse juurdekasvu ja
sellega seoses ka kasumit ning biomassi ümberhindluse tulem oli 400 000 eurot
teises kvartalis võrreldes 900 000 euroga eelmise aasta samal perioodil. Tuleb
märkida et biomassi juurdekasv juulis oli juba 400 tonni tänu soojemale ilmale. 

Grupi konsolideeritud EBITDA oli 340 000 eurot võrreldes 660 000 euroga eelmise
aasta vastaval perioodil, valdavalt mõjutas seda biomassi madalam kasum. Ilma
ühekordsete kuludeta oli teise kvartali EBITDA 540 000 eurot, mis on 100 000
eurot vähem võrreldes eelmise aasta sama perioodiga. 

Väga kõrged tooraine hinnad mõjutasid meie tegevust esimesel poolaastal, kui
nüüd näeme kiiret hinnalangust lõhe hindades, mis peaksid toetama meie
kasumlikkust teisel poolaastal. Vikerforelli hinnad on püsinud stabiilselt
kõrged, mis ühelt poolt toetab meie kalakasvatuse kasumlikkust, kuid samas
mõjutab äritegevust ja tootmist, kuna ligi poole vikerforellist peame ostma
kolmandatelt osapooltelt. 

Kuue kuu tulemusi mõjutas negatiivselt kehv esimene kvartal. Esimese poolaasta
käive oli 23,6 miljonit eurot, kasvades 18,2% aasta baasil. Brutomarginaal oli
6,4% võrreldes 8,0% aasta tagasi. 

Biomassi ümberhindluse mõju oli 200 000 eurot võrreldes 500 000 euroga aasta
tagasi, äritegevuse EBITDA oli -0,4 miljonit eurot (6 kuud 2016: -0,03 miljonit
eurot). 

Kalavarude maht tonnides oli esimese poolaasta lõpus 1 414 tonni, aastane
muutus 15,3% ehk 188 tonni. Rahalises vääringus on kalavarude maht 8,25
miljonit eurot, kasv, 2,47 miljonit eurot võrreldes eelmise aasta sama
perioodiga, ehk 42,6%. 

Konsolideeritud EBITDA oli -220 000 eurot võrreldes 440 000 euroga aasta
tagasi. Ilma ühekordsete kuludeta oli konsolideeritud EBIDTA -10 000 eurot. 

Puhaskahjum oli esimesel poolaastal -1,0 miljonit eurot võrreldes -0,4 miljoni
euroga aasta tagasi. Ilma ühekordsete kuludeta oli puhaskahjum -0,8 miljonit
eurot vähenedes 0,3 miljoni euro võrra võrreldes eelmise aasta sama perioodiga. 

Me eeldasime, et kasumlikkus paraneb kiiremini, kuid kaks põhilist faktorit,
milleks olid kõrgel püsinud tooraine hind lõppmüügihindade tõstmine toimus
aeglasemas tempos. 

Väga positiivne on, et oleme suutnud märkimisväärselt vähendada oma
tegevuskulusid. Tegevuskulude osakaal käibest oli teises kvartalis 9,5%
võrreldes 12,7% eelmise aasta samal perioodil. Esimese poolaasta baasil oli
tegevuskulude osakaal 10,2% võrreldes 11,6% eelmise aasta esimesel poolaastal.
See tõestab, et ettevõtte on suuteline operatiivselt ja paindlikult kohanduma
kiiresti muutuvas kulukeskkonnas. 

PRFoodsi bilanss on jätkuvalt tugev. Netovõlgnevus on 1,0 miljonit eurot
võrreldes -1,4 miljoni euroga võrreldavad perioodiga. Juulis lisandusid laenud
seoses ettevõtete omandamisega, mida kirjeldatakse täpsemalt 3. kvartali
aruandes. Netovõlgnevuse suhe EBITDA-sse oli 1,6 ja käibekapitali tase on 11,5
miljonit eurot. Netovõlgnevuse suurenemine on tingitud kalakasvatuse mahu ja
kalasööda arvelt. 

Toorkala hind oli erakordselt kõrge esimese kvartalis võrreldes ajalooliste
hindadega, mõjutades nii nõudlust kui kasumlikkust. Erakordne oli, et
vikerforelli hind oli kõrgem kui lõhel ja arvestades, et vikerforell oli siiani
meie põhitooraine, muutis see esimese kvartali erakordselt keeruliseks. Me
ennustame, et teisel poolaastal, toorkala hind hakkab langema, mis on hea uudis
nii tootjatele kui klientidele. 

PRFoods on lõpetanud kaubamärkide uuendamise protsessi ning läheb üle uuendatud
brändile sel sügisel. 

PRFoods eeldab käesolevaks aastaks pro forma käibeks üle 100 miljoni euro ning
normaliseeritud ning konsolideeritud EBITDA taset 6 miljonit eurot. 

2. kvartal 2017 võrreldes 2016. aasta 2. kvartali tulemusega

  -- Auditeerimata konsolideeritud käive 13,1 miljonit eurot, kasv +33,9% ehk
     +3,3 miljonit eurot.
  -- Brutomarginaal 7,5%, kasv +1,2 protsendipunkti ehk +19,7%.
  -- Bioloogiliste varade ümberhindluse positiivne mõju +0,4 miljonit eurot (2.
     kvartal 2016: positiivne mõju +0,9 miljonit eurot).
  -- EBITDA äritegevusest -0,1 miljonit eurot, kasv +0,2 miljonit eurot (ilma
     2017. aasta ühekordse kulu mõjuta EBITDA +0,1 miljonit eurot, kasv +0,4
     miljonit eurot).
  -- EBITDA +0,3 miljonit eurot, kasv +0,2 miljonit eurot (ilma 2017. aasta
     ühekordse kulu mõjuta EBITDA +0,5 miljonit eurot, kasv +0,4 miljonit
     eurot).
  -- Ärikasum +0,03 miljonit eurot, kahanemine -0,3 miljonit eurot (ilma 2017.
     aasta ühekordse kulu mõjuta ärikasum 0,2 miljonit eurot, kahanemine -0,1
     miljonit eurot).
  -- Puhaskahjum -0,1 miljonit eurot, kasv -0,2 miljonit eurot (ilma 2017. aasta
     ühekordse kulu mõjuta puhaskasum 0,1 miljonit eurot, kasv +0,04 miljonit
     eurot).

6 kuud 2017 võrreldes 2016. aasta 6 kuud tulemusega

  -- Auditeerimata konsolideeritud käive 23,6 miljonit eurot, kasv +18,2% ehk
     +3,6 miljonit eurot.
  -- Brutomarginaal 6,4%, vähenemine -1,6 protsendipunkti.
  -- Bioloogiliste varade ümberhindluse positiivne mõju +0,2 miljonit eurot (6
     kuud 2016: positiivne mõju +0,5 miljonit eurot).
  -- EBITDA äritegevusest -0,4 miljonit eurot, halvenemine -0,3 miljonit eurot
     (ilma 2017. aasta ühekordse kulu mõjuta EBITDA -0,2 miljonit eurot,
     kahanemine -0,1 miljonit eurot).
  -- EBITDA -0,2 miljonit eurot, kahanemine -0,7 miljonit eurot (ilma 2017.
     aasta ühekordse kulu mõjuta EBITDA       -0,01 miljonit eurot, kahanemine
     -0,5 miljonit eurot).
  -- Ärikahjum -0,8 miljonit eurot, halvenemine -0,7 miljonit eurot (ilma 2017.
     aasta ühekordse kulu mõjuta ärikahjum -0,6 miljonit eurot, halvenemine -0,5
     miljonit eurot).
  -- Puhaskahjum -1,0 miljonit eurot, halvenemine -0,5 miljonit eurot (ilma
     2017. aasta ühekordse kulu mõjuta puhaskahjum -0,8 miljonit eurot,
     halvenemine -0,3 miljonit eurot).




VÕTMENÄITAJAD

Kasumiaruanne, milj       1kv      2kv      6k      1kv     2kv      6k      12k
 EUR                     2017     2017    2017     2016    2016    2016     2016
--------------------------------------------------------------------------------
Müügitulu                10,6     13,1    23,6     10,2     9,8    20,0     47,4
--------------------------------------------------------------------------------
Brutokasum                0,5      1,0     1,5      1,0     0,6     1,6      4,0
--------------------------------------------------------------------------------
EBITDA äritegevusest     -0,3      0,1    -0,2      0,2    -0,3   -0,03      0,8
--------------------------------------------------------------------------------
EBITDA                   -0,6      0,3    -0,2     -0,2     0,7     0,4      2,6
--------------------------------------------------------------------------------
EBIT                     -0,9     0,03    -0,8     -0,5     0,3    -0,2      1,4
--------------------------------------------------------------------------------
EBT                      -0,9     -0,1    -1,0     -0,6     0,2    -0,3      1,1
--------------------------------------------------------------------------------
Puhaskasum (-kahjum)     -0,8     -0,1    -1,0     -0,5    0,04    -0,4      0,7
--------------------------------------------------------------------------------
Brutorentaablus          5,0%     7,5%    6,4%     9,5%    6,3%    8,0%     8,5%
--------------------------------------------------------------------------------
Äritegevuse EBITDA      -2,7%     1,0%   -0,7%     2,1%   -2,6%   -0,2%     1,6%
 marginaal                                                                      
--------------------------------------------------------------------------------
EBITDA marginaal        -5,3%     2,6%   -0,9%    -2,2%    6,8%    2,2%     5,5%
--------------------------------------------------------------------------------
EBIT marginaal          -8,3%     0,2%   -3,6%    -5,2%    3,6%   -0,9%     2,9%
--------------------------------------------------------------------------------
EBT marginaal           -8,5%    -0,4%   -4,0%    -5,5%    2,3%   -1,7%     2,4%
--------------------------------------------------------------------------------
Puhasrentaablus         -7,9%    -1,0%   -4,1%    -4,5%    0,4%   -2,1%     1,5%
--------------------------------------------------------------------------------
Tegevuskulude           11,2%     9,5%   10,2%    10,5%   12,7%   11,6%    10,1%
 suhtarv                                                                        
--------------------------------------------------------------------------------



Bilanss, milj EUR    31.03.2017  30.06.2017  31.03.2016  30.06.2016  31.12.2016
-------------------------------------------------------------------------------
Netovõlgnevus               1,6         1,0        -3,1        -1,4         0,3
-------------------------------------------------------------------------------
Omakapital                 22,8        22,7        22,7        22,7        23,8
-------------------------------------------------------------------------------
Käibekapital               11,5        11,5        11,0        11,2        12,4
-------------------------------------------------------------------------------
Varad                      33,3        33,5        28,6        29,3        35,1
-------------------------------------------------------------------------------
Likviidsuskordaja           2,4         2,3         3,7         3,4         2,4
-------------------------------------------------------------------------------
Omakapitali suhtarv       68,5%       67,8%       79,4%       77,6%       67,9%
-------------------------------------------------------------------------------
Finantsvõimendus           6,4%        4,1%      -15,7%       -6,7%        1,2%
-------------------------------------------------------------------------------
Netovõlg/EBITDA             6,4         1,6        -1,1        -0,7         0,4
-------------------------------------------------------------------------------
Omakapitali tootlus        1,5%        0,7%        4,5%        3,6%        3,0%
-------------------------------------------------------------------------------
Varade tootlus             1,1%        0,5%        3,7%        2,9%        2,2%
-------------------------------------------------------------------------------



Konsolideeritud finantsseisundi aruanne

EUR '000                             30.06.2017  30.06.2016  31.12.2016
-----------------------------------------------------------------------
VARAD                                                                  
-----------------------------------------------------------------------
Raha ja ekvivalendid                      4 088       2 632       4 374
-----------------------------------------------------------------------
Nõuded ja ettemaksed                      2 694       2 361       4 056
-----------------------------------------------------------------------
Varud                                     5 105       5 125       5 393
-----------------------------------------------------------------------
Bioloogilised varad                       8 251       5 786       7 584
-----------------------------------------------------------------------
Käibevara kokku                          20 138      15 904      21 407
-----------------------------------------------------------------------
                                                                       
-----------------------------------------------------------------------
Edasilükkunud tulumaksuvara                 226         136         230
-----------------------------------------------------------------------
Pikaajalised finantsinvesteeringud          102         106         103
-----------------------------------------------------------------------
Materiaalne põhivara                      7 019       7 065       7 285
-----------------------------------------------------------------------
Immateriaalne vara                        5 981       6 080       6 031
-----------------------------------------------------------------------
Põhivara kokku                           13 328      13 387      13 649
-----------------------------------------------------------------------
VARAD KOKKU                              33 466      29 291      35 056
-----------------------------------------------------------------------
                                                                       
-----------------------------------------------------------------------
KOHUSTUSED JA OMAKAPITAL                                               
-----------------------------------------------------------------------
Võlakohustused                            4 266         286       3 716
-----------------------------------------------------------------------
Võlad ja ettemaksed                       4 243       4 211       5 131
-----------------------------------------------------------------------
Sihtfinantseerimine                         170         162         162
-----------------------------------------------------------------------
Lühiajalised kohustused kokku             8 679       4 659       9 009
-----------------------------------------------------------------------
                                                                       
-----------------------------------------------------------------------
Võlakohustused                              788         925         940
-----------------------------------------------------------------------
Edasilükkunud tulumaksukohustus             758         337         747
-----------------------------------------------------------------------
Sihtfinantseerimine                         544         635         551
-----------------------------------------------------------------------
Pikaajalised kohustused kokku             2 090       1 897       2 238
-----------------------------------------------------------------------
KOHUSTUSED KOKKU                         10 769       6 556      11 247
-----------------------------------------------------------------------
                                                                       
-----------------------------------------------------------------------
Aktsiakapital                             7 737       7 737       7 737
-----------------------------------------------------------------------
Ülekurss                                 14 007      14 007      14 007
-----------------------------------------------------------------------
Oma aktsiad                                -390        -206        -256
-----------------------------------------------------------------------
Kohustuslik reservkapital                    48          12          12
-----------------------------------------------------------------------
Realiseerimata kursivahed                   417         441         428
-----------------------------------------------------------------------
Jaotamata kasum (-kahjum)                   878         744       1 881
-----------------------------------------------------------------------
Ettevõtte aktsionäridele kuuluv osa      22 697      22 735      23 809
-----------------------------------------------------------------------
OMAKAPITAL KOKKU                         22 697      22 735      23 809
-----------------------------------------------------------------------
OMAKAPITAL JA KOHUSTUSED KOKKU           33 466      29 291      35 056
-----------------------------------------------------------------------



Konsolideeritud koondkasumiaruanne

EUR '000                                  2kv     2kv  6k 2017  6k 2016      12k
                                         2017    2016                       2016
--------------------------------------------------------------------------------
Müügitulud                             13 066   9 761   23 628   19 996   47 429
--------------------------------------------------------------------------------
Müüdud kaupade kulu                   -12 081  -9 146  -22 117  -18 404  -43 410
--------------------------------------------------------------------------------
Brutokasum                                985     615    1 511    1 592    4 019
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Tegevuskulud                           -1 237  -1 235   -2 416   -2 313   -4 785
--------------------------------------------------------------------------------
Turundus- ja müügikulud                  -879    -789   -1 716   -1 555   -3 346
--------------------------------------------------------------------------------
Üldhalduskulud                           -358    -446     -700     -758   -1 439
--------------------------------------------------------------------------------
Muud äritulud/-kulud                     -138      59      -88       71     -118
--------------------------------------------------------------------------------
Bioloogiliste varade ümberhindlus         420     910      150      466    2 263
--------------------------------------------------------------------------------
Ärikasum (-kahjum)                         30     349     -843     -184    1 379
--------------------------------------------------------------------------------
Finantstulud                               -5       1        1        1        2
--------------------------------------------------------------------------------
Finantskulud                              -80    -123     -114     -155     -240
--------------------------------------------------------------------------------
Maksustamiseelne kasum (-kahjum)          -55     227     -956     -338    1 141
--------------------------------------------------------------------------------
Tulumaks                                  -73    -185      -11      -84     -426
--------------------------------------------------------------------------------
Aruandeperioodi puhaskasum (-kahjum)     -128      42     -967     -422      715
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Muu koondkasum (-kahjum), mida võib                                             
 hiljem klassifitseerida                                                        
 kasumiaruandesse:                                                              
--------------------------------------------------------------------------------
Valuutakursi vahed                        -11     -24      -11      -30      -43
--------------------------------------------------------------------------------
Kokku koondkasum (-kahjum)               -139      18     -978     -452      672
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Aruandeperioodi koondkahjumi jaotus:                                            
--------------------------------------------------------------------------------
emaettevõtte aktsionäridele kuuluv       -139      18     -978     -452      672
 osa                                                                            
--------------------------------------------------------------------------------
Aruandeperioodi koondkahjum kokku        -139      18     -978     -452      672
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Tava puhaskasum (-kahjum) aktsia         0,00    0,00    -0,03    -0,01     0,02
 kohta (EUR)                                                                    
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Lahustatud puhaskasum (-kahjum)          0,00    0,00    -0,03    -0,01     0,02
 aktsia kohta (EUR)                                                             
--------------------------------------------------------------------------------



Indrek Kasela
AS PRFoods
Juhatuse liige
T: +372 452 1470
[email protected]
www.prfoods.ee

Content of announcement in English

Title

PRF: Consolidated Unaudited Interim Report of AS PRFoods for 2nd quarter and 6 months of 2017

Message

Tallinn, Estonia, 2017-08-18 21:15 CEST (GLOBE NEWSWIRE) --
Overview of the economic activities

MANAGEMENT COMMENTARY

PRFoods had very exciting first half of 2017. One hand we faced the continued
challenges from historically high raw material prices, affecting our
profitability. On the other hand, we fundamentally changed the business of the
company by adding John Ross Jr (JRJ) and Coln Valley Smokery Ltd. (CVS) to our
group. PRFoods also announced the acquisition of Trio Trading (Trio) in
Finland, to be approved by Extraordinary Shareholders Meeting on 28.8.2017.
Consolidated pro forma sales for 2017 are expected to reach over 100 million
euros this year. PRFoods can declare that it has achieved a major milestone in
our strategy to develop a global leading branded premium seafood products
company. JRJ and CVS have established themselves as leading international
Scottish smoked salmon companies, receiving highest honours at home and abroad.
JRJ carries coveted and very exclusive Royal Warrant and was awarded Queen’s
Award for export in 2016. 

19.07.2017 PRFoods shareholders approved the acquisition of 85% of JRJ and CVS.
Financial year of JRJ and CVS ended 30.06.2017. Consolidated unaudited sales of
financial year 2016-2017 were 19.7 million euros, adjusted EBITDA +2.4 million
euros, net profit +1.3 million euros, net debt -0.8 million euros. 

Not only have these acquisitions strengthened our brand portfolio but are
expected to significantly improve our bottom-line performance going forward.
Trio acquisition will enable us to further consolidate and make more profitable
our previous home market Finland and also give enough capacity for export
growth. We also expect CAPEX to decrease as between five production sites we
have significant and immediate synergies. 

PRFoods sales grew by 33.9% in Q2 reaching 13.1 mEUR. More importantly we
managed to improve our gross margin in existing business by 19.7% on year on
year basis to 7.5% (Q2 2016: 6.3%). 

EBITDA from business operations improved by 200,000 EUR on year on year and was
-0.1 mEUR in Q2 (Q2 2016: -0.3 mEUR), without one-offs related to acquisitions
the improvement was 400,000 euros. 

Net loss for Q2 was -0.1 mEUR compared to +0.04 mEUR in 2016. Without one-off
expenses, the net profit increased by 100,000 euros on year-on-year. 

While we are moderately satisfied with the improvements in Q2, we believe there
is significant room to improve our performance in H2 2017, since we only saw
decrease in raw material prices in the end of Q2 and price adjustments took
effect in May. Cold weather in Q2 affected our fish farming business and
biomass revaluation contributed only 400,000 EUR in Q2 compared to 900,000 in
Q2 2016. It should be mentioned that in July we managed increase our biomass by
400 tons due to much warmer weather. 

Group’s consolidated EBITDA in Q2 2017 was 340,000 euros compared to 660,000
euros in Q2 2016, mostly due to lower biomass revaluation. Without one-off
expenses in Q2 related to acquisitions our Q2 EBITDA was 540,000 euros, 100,000
euros less on year on year basis. 

Very high raw material prices affected our performance in first half of the
year, but we are now seeing very rapid decrease in salmon raw material prices,
which should contribute to better performance in H2. Rainbow trout prices have
remained stable, giving our fish farming boost but on the other hand affecting
production profitability, since close to half of rainbow trout needs to be
sourced from 3d parties. 

6 months results are weighted down by poor performance in Q1 2017. First half
year sales were 23.6 mEUR, increase of 18.2% on year on year. Gross margin was
6.4% compared to 8.0% in H1 2016. 

Biomass revaluation positive effect was 200,000 euros compared to 500,000 year
on year. EBITDA from operations was -0.4 mEUR (6m 2016: -0.03 mEUR) 

Biomass in tons was 1,414 tons at the end of first half year, increasing year
on year by 15.3%. Company has biomass in value of 8.25 mEUR, increase by 2.47
mEUR or 42.6% on year on year. 

Consolidated EBITDA was -220,000 euros compared to 440,000 euros in 2016.
Without one-off expenses related to acquisitions in 2017, consolidated EBITDA
was -10,000 euros. 

Net loss for H1 was -1.0 mEUR compared to -0.4 mEUR in 2016. Without one-offs,
net loss was -0.8 mEUR, decreasing by 0.3 mEUR compared to H1 2016. 

We expected the performance to return to better profitability sooner, but two
main factors, still high raw material in H1 and repricing our products, that
happened at slower pace. 

It is very positive that we have managed to reduce significantly our operating
expenses. Operating expense ratio was 9.5% in Q2, compared to 12.7% during Q2
2016. First half year operating expenses ratio was 10.2% compared to 11.6% year
on year. This proves that company is able to react timely and flexibly adjust
to the environment of volatile cost base. 

Our balance sheet remains strong. Our net debt was 1.0 mEUR compared to -1.4
mEUR in 2016. In July, we took on acquisition debt which will be reflected in
Q3 reports. Our Net Debt to EBITDA is 1.6 and working capital stood at 11.5
mEUR. The increase in net debt is due to increase in biomass in fish farming at
the end of the quarter due to feeding period. 

The prices of raw fish have been very high in Q1 compared to historical prices
of raw material, affecting both demand and profitability. Extraordinarily, the
price of rainbow trout has been higher than salmon and considering that rainbow
trout is our main raw material, the Q1 was most difficult for us. We forecast
that in 2nd half of the year, the prices of raw material will start to drop,
this is good news for us as a producer as well to our customers. 

PRFoods has finished preparations for brand renewal in Finland and will launch
new brand concept this fall. 

PRFoods expects pro forma revenues to be in excess of 100 mEUR and normalized
and consolidated EBITDA to reach 6 mEUR in 2017. 

The 2nd quarter of 2017 compared to the 2nd quarter of 2016


  -- Unaudited consolidated revenue 13.1 million euros, increase +3.3 million
     euros, i.e. +33.9%.
  -- Gross margin 7.5%, increase +1.2 percentage points, i.e. +19.7%.
  -- Positive impact from revaluation of biological assets +0.4 million euros
     (Q2 2016: positive effect +0.9 million euros).
  -- EBITDA from operations -0.1 million euros, increase +0.2 million euros
     (without one-off effects in year 2017 EBITDA from business operations +0.1
     million euros, increase +0.4 million euros).
  -- EBITDA +0.3 million euros, increase +0.2 million euros (without one-off
     effects in 2017 EBITDA +0.5 million euros, increase +0.4 million euros).
  -- The operating profit +0.03 million euros, decrease -0.2 million euros
     (without one-off effects operating profit +0.2 million euros, decrease -0.1
     million euros).
  -- Net loss -0.1 million euros, increase -0.2 million euros (without one-off
     effects net profit 0.1 million euros, increase +0.04 million euros).

The 6 months of 2017 compared to the 6 months of 2016

  -- Unaudited consolidated revenue 23.6 million euros, increase +3.6 million
     euros, i.e. +18.2%.
  -- Gross margin 6.4%, decrease -1.6 percentage points.
  -- Positive impact from revaluation of biological assets +0.2 million euros (6
     months 2016: positive impact of
 +0.5 million euros). 
  -- EBITDA from operations -0.4 million euros, decrease -0.3 million euros
     (without one-off effects in year 2017 EBITDA from business operations -0.2
     million euros, decrease -0.1 million euros).
  -- EBITDA -0.2 million euros, decrease -0.7 million euros (without one-off
     effects in 2017 EBITDA -0.01 million euros, decrease -0.5 million euros).
  -- The operating loss -0.8 million euros, decrease -0.7 million euros (without
     one-off effects in 2017 operating loss -0.6 million euros, increase by -0.5
     million euros).
  -- Net loss -1.0 million euros, decrease -0.5 million euros (without one-off
     effects in 2017 net loss -0.8 million euros, increase -0.3 million euros).



KEY RATIOS

Income Statement,   Q1 2017  Q2 2017  6m 2017  Q1 2016      Q2  6m 2016      12m
 EUR mln                                                  2016              2016
--------------------------------------------------------------------------------
Sales                  10.6     13.1     23.6     10.2     9.8     20.0     47.4
--------------------------------------------------------------------------------
Gross profit            0.5      1.0      1.5      1.0     0.6      1.6      4.0
--------------------------------------------------------------------------------
EBITDA from            -0.3      0.1     -0.2      0.2    -0.3    -0.03      0.8
 operations                                                                     
--------------------------------------------------------------------------------
EBITDA                 -0.6      0.3     -0.2     -0.2     0.7      0.4      2.6
--------------------------------------------------------------------------------
EBIT                   -0.9     0.03     -0.8     -0.5     0.3     -0.2      1.4
--------------------------------------------------------------------------------
EBT                    -0.9     -0.1     -1.0     -0.6     0.2     -0.3      1.1
--------------------------------------------------------------------------------
Net profit (-loss)     -0.8     -0.1     -1.0     -0.5    0.04     -0.4      0.7
--------------------------------------------------------------------------------
Gross margin           5.0%     7.5%     6.4%     9.5%    6.3%     8.0%     8.5%
--------------------------------------------------------------------------------
Operational EBITDA    -2.7%     1.0%    -0.7%     2.1%   -2.6%    -0.2%     1.6%
 margin                                                                         
--------------------------------------------------------------------------------
EBITDA margin         -5.3%     2.6%    -0.9%    -2.2%    6.8%     2.2%     5.5%
--------------------------------------------------------------------------------
EBIT margin           -8.3%     0.2%    -3.6%    -5.2%    3.6%    -0.9%     2.9%
--------------------------------------------------------------------------------
EBT margin            -8.5%    -0.4%    -4.0%    -5.5%    2.3%    -1.7%     2.4%
--------------------------------------------------------------------------------
Net margin            -7.9%    -1.0%    -4.1%    -4.5%    0.4%    -2.1%     1.5%
--------------------------------------------------------------------------------
Operating expense     11.2%     9.5%    10.2%    10.5%   12.7%    11.6%    10.1%
 ratio                                                                          
--------------------------------------------------------------------------------



Balance Sheet, EUR    31.03.2017  30.06.2017  31.03.2016  30.06.2016  31.12.2016
 mln                                                                            
--------------------------------------------------------------------------------
Net debt                     1.6         1.0        -3.1        -1.4         0.3
--------------------------------------------------------------------------------
Equity                      22.8        22.7        22.7        22.7        23.8
--------------------------------------------------------------------------------
Working capital             11.5        11.5        11.0        11.2        12.4
--------------------------------------------------------------------------------
Assets                      33.3        33.5        28.6        29.3        35.1
--------------------------------------------------------------------------------
Liquidity ratio              2.4         2.3         3.7         3.4         2.4
--------------------------------------------------------------------------------
Equity ratio               68.5%       67.8%       79.4%       77.6%       67.9%
--------------------------------------------------------------------------------
Gearing ratio               6.4%        4.1%      -15.7%       -6.7%        1.2%
--------------------------------------------------------------------------------
Net debt-to-EBITDA           6.4         1.6        -1.1        -0.7         0.4
--------------------------------------------------------------------------------
ROE                         1.5%        0.7%        4.5%        3.6%        3.0%
--------------------------------------------------------------------------------
ROA                         1.1%        0.5%        3.7%        2.9%        2.2%
--------------------------------------------------------------------------------



Consolidated statement of financial position

EUR '000                         30.06.2017  30.06.2016  31.12.2016
-------------------------------------------------------------------
ASSETS                                                             
-------------------------------------------------------------------
Cash and cash equivalents             4,088       2,632       4,374
-------------------------------------------------------------------
Receivables and prepayments           2,694       2,361       4,056
-------------------------------------------------------------------
Inventories                           5,105       5,125       5,393
-------------------------------------------------------------------
Biological assets                     8,251       5,786       7,584
-------------------------------------------------------------------
Total current assets                 20,138      15,904      21,407
-------------------------------------------------------------------
                                                                   
-------------------------------------------------------------------
Deferred income tax                     226         136         230
-------------------------------------------------------------------
Long-term financial investments         102         106         103
-------------------------------------------------------------------
Tangible fixed assets                 7,019       7,065       7,285
-------------------------------------------------------------------
Intangible assets                     5,981       6,080       6,031
-------------------------------------------------------------------
Total non-current assets             13,328      13,387      13,649
-------------------------------------------------------------------
TOTAL ASSETS                         33,466      29,291      35,056
-------------------------------------------------------------------
                                                                   
-------------------------------------------------------------------
EQUITY AND LIABILITIES                                             
-------------------------------------------------------------------
Loans and borrowings                  4,266         286       3,716
-------------------------------------------------------------------
Payables                              4,243       4,211       5,131
-------------------------------------------------------------------
Government grants                       170         162         162
-------------------------------------------------------------------
Total current liabilities             8,679       4,659       9,009
-------------------------------------------------------------------
                                                                   
-------------------------------------------------------------------
Loans and borrowings                    788         925         940
-------------------------------------------------------------------
Deferred tax liabilities                758         337         747
-------------------------------------------------------------------
Government grants                       544         635         551
-------------------------------------------------------------------
Total non-current liabilities         2,090       1,897       2,238
-------------------------------------------------------------------
TOTAL LIABILITIES                    10,769       6,556      11,247
-------------------------------------------------------------------
                                                                   
-------------------------------------------------------------------
Share capital                         7,737       7,737       7,737
-------------------------------------------------------------------
Share premium                        14,007      14,007      14,007
-------------------------------------------------------------------
Treasury shares                        -390        -206        -256
-------------------------------------------------------------------
Statutory capital reserve                48          12          12
-------------------------------------------------------------------
Currency translation reserve            417         441         428
-------------------------------------------------------------------
Retained profit (-loss)                 878         744       1,881
-------------------------------------------------------------------
Equity attributable to parent        22,697      22,735      23,809
-------------------------------------------------------------------
TOTAL EQUITY                         22,697      22,735      23,809
-------------------------------------------------------------------
TOTAL EQUITY AND LIABILITIES         33,466      29,291      35,056
-------------------------------------------------------------------



Consolidated statement of profit or loss and other comprehensive income

EUR '000                              Q2 2017      Q2  6m 2017  6m 2016      12m
                                                 2016                       2016
--------------------------------------------------------------------------------
Sales                                  13,066   9,761   23,628   19,996   47,429
--------------------------------------------------------------------------------
Cost of goods sold                    -12,081  -9,146  -22,117  -18,404  -43,410
--------------------------------------------------------------------------------
Gross profit                              985     615    1,511    1,592    4,019
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Operating expenses                     -1,237  -1,235   -2,416   -2,313   -4,785
--------------------------------------------------------------------------------
Selling and distribution expenses        -879    -789   -1,716   -1,555   -3,346
--------------------------------------------------------------------------------
Administrative expenses                  -358    -446     -700     -758   -1,439
--------------------------------------------------------------------------------
Other income/expenses                    -138      59      -88       71     -118
--------------------------------------------------------------------------------
Fair value adjustment on biological       420     910      150      466    2,263
 assets                                                                         
--------------------------------------------------------------------------------
Operating profit (-loss)                   30     349     -843     -184    1,379
--------------------------------------------------------------------------------
Financial income                           -5       1        1        1        2
--------------------------------------------------------------------------------
Financial expenses                        -80    -123     -114     -155     -240
--------------------------------------------------------------------------------
Profit (-loss) before tax                 -55     227     -956     -338    1,141
--------------------------------------------------------------------------------
Income tax                                -73    -185      -11      -84     -426
--------------------------------------------------------------------------------
Net profit (-loss) for the period        -128      42     -967     -422      715
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Other comprehensive income (-loss)                                              
 that may subsequently be classified                                            
 to profit or loss:                                                             
--------------------------------------------------------------------------------
Foreign currency translation              -11     -24      -11      -30      -43
 differences                                                                    
--------------------------------------------------------------------------------
Total comprehensive income               -139      18     -978     -452      672
 (-expense)                                                                     
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Total comprehensive income                                                      
 (-expense) attributable to:                                                    
--------------------------------------------------------------------------------
Owners of the Company                    -139      18     -978     -452      672
--------------------------------------------------------------------------------
Total comprehensive income               -139      18     -978     -452      672
 (-expense) for the period                                                      
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Profit (-loss) per share (EUR)           0.00    0.00    -0.03    -0.01     0.02
--------------------------------------------------------------------------------
                                                                                
--------------------------------------------------------------------------------
Diluted profit (-loss) per share         0.00    0.00    -0.03    -0.01     0.02
 (EUR)                                                                          
--------------------------------------------------------------------------------



Indrek Kasela
AS PRFoods
Member of the Management Board
Phone: +372 452 1470
[email protected]
www.prfoods.ee