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PRF: In 2011 Premia Foods forecasts 10% increase in turnover and 25% increase in profit

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Premia Foods AS forecasts the consolidated turnover of 2011 to be 85 million
euro, which compared to 2010 means a 10% increase in turnover; and a net profit
to be 1.6 million euro, which means a 25% increase in net profit. Subject to
the approval of the Supervisory Board, the Management Board of Premia Foods
makes the annual General Meeting a proposal to resolve distribution of profit
in the amount corresponding to 30% of the 2010 net profit of Premia Foods to be
paid as the dividends of 2010. 

Tallinn, Estonia, 2011-03-09 15:15 CET (GLOBE NEWSWIRE) --

According to the management of the company, increase of turnover and profit is
expected in all business segments and the increase of sales volumes together
with the increase of production efficiency in fish and ice-cream segment will
bring along increase of profit. 

In ice-cream segment, the management expects growth in all target markets,
thereby for the purpose of expanding and improving the efficiency of production
activities, the company has executed a lease agreement with an ice-cream
producer OOO „Leda“ and as a result of which the production activities of
Khladokombinat will be relocated from the existing lease premises in the centre
of St Petersburg to logistically well-suitable premises of the ice-cream
factory situated 160 km from St Petersburg in the city of Kirishi. Costs
occurred in the course of the relocation in 2011 amount to 280,000 euro but at
the same time the relocating the activities of Khladokombinat to new rental
premises results in savings amounting approximately up to 100,000 euro in 2011
and as from 2012 approximately up to 500,000 euro per year. Operating in the
new premises will additionally enable the company to diversify the product
line. Due to the relocation employment contracts with 137 employees related to
production in St Petersburg will be terminated, but at the same time 80 new
employees in Kirishi will be hired, also key employees of the sales and
marketing divisions and some of the current production specialists continue to
work for the company. Improvement of efficiency and continuous development of
the existing brands in the Baltics is, in the opinion of the management, solid
ground for the growth expectations. 

Aggressive approach in frozen goods segment continues and in addition to the
existing markets the company enters into that business segment also in St
Petersburg and Finland by development of company's own trademarks, which will
be achieved through diversification of product line. Increase of volumes in the
frozen goods business segment enables to even out the effect of seasonality of
the ice-cream segment. 

In fish segment growth is expected after the reorganisation of production
carried out last year and because of active product development carried out for
trademark Heimon Gourmet in the Finnish market and by launching the trademark
Viking in the Baltics' frozen fish products segment this year. 

“The Supervisory Board has approved the proposal of the Management Board to
distribute profit in the amount corresponding to 30% of the 2010 net profit of
Premia Foods to be paid as the dividends of 2010 and corresponding proposal
will be made to the annual General Meeting of shareholders in order to get its
approval. In our opinion it is important to develop consistent dividend policy
on which the shareholders could rely on in the future. Liquidity ratios and
debt-to-equity ratio of Premia Foods are solid and the company has enough funds
or options for future investments and further development,” said the Chairman
of the Management Board Kuldar Leis. 

Premia Foods is a group of companies consolidating food companies, which
operates in the Baltic countries as well as in Finland, Sweden and Russia and
which is particularly well-known for its highly rated trademarks. The company's
unaudited consolidated turnover for 2010 was 77.3 million euro and altogether
797 people are employed by the company. Premia Foods is listed on NASDAQ OMX
Tallinn Stock Exchange since 5 May 2010. 


         Kuldar Leis
         Premia Foods
         Chairman of the Management Board
         T: 6 033 800
         [email protected]
         www.premiafoods.eu