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PRF: Unaudited consolidated turnover of AS Premia Foods, 2nd quarter and 6 months 2012

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Tallinn, Estonia, 2012-07-10 08:00 CEST (GLOBE NEWSWIRE) --


The unaudited consolidated turnover of AS Premia Foods in the 2nd quarter 2012
was 26.1 million euro. The turnover result decreased by 1.5 million euro, i.e.
5.4%, if compared to the same period previous year. The company’s turnover of 6
months was 43.2 million euro. If compared to the same period previous year, the
result decreased by 1 million euro, i.e. 2.4%. 

While summarising both periods – the 2nd quarter and 6 months – the turnover
increased in the frozen goods business segment and the results of the ice cream
and the fish business segments were a bit less than in 2011. As to the target
markets, the turnover increased during the first 6 months in all Baltic states,
the results of the Finnish and Russian markets were somewhat less than during
the same period previous year. 



Turnover by business          Q1    Q1    Q2    Q2  6 months 2012  6 months 2011
 segment                    2012  2011  2012  2011                              
(MEUR)                                                                          
Ice cream                    3.7   4.0  10.7  12.2           14.4           16.3
Frozen goods                 5.3   4.9   5.6   5.0           11.0           10.0
Fish and fish products       7.7   7.4   9.1   9.8           16.8           17.2
Other                        0.4   0.3   0.6   0.5            1.0            0.8
Total                       17.1  16.7  26.1  27.6           43.2           44.2

In the ice cream business segment, the good result of the 6 months of 2011 was
achieved due to the favourable weather conditions in the 2nd quarter. The cold
spring and cool June of 2012 had an adverse effect on the ice cream market as a
whole influencing negatively the consumption of ice cream in all the target
markets of Premia. Due to the above, the turnover result did not reach the
level of the 6 months of 2011. The only target market where the company was
able to achieve the result comparable with the one of 2011 was the Estonian
market, where the turnover was mere 1% less than during the 6 months of 2011.
The turnover results suffered the most in the Latvian and Russian markets; also
the turnover result of the 6 months of 2011 was not reached in Lithuania. 

Without prejudice to the foregoing, as also indicated in our previous reports,
it must be emphasised that the results of the ice cream business segment must
be evaluated on the basis of the summarised results of the whole summer period,
including both, the 2nd and the 3rd quarter. Due to the seasonal effects, the
comparison of one summer quarter with the same period previous year may not
result in adequate understanding of the results of the entire business segment. 

The sales of frozen goods are continuously increasing. The 1 million euro, i.e.
10%, increase in turnover is the result of great efforts made in all the target
markets of Premia. The turnover has increased the most in the Latvian market,
followed by the Lithuanian and Estonian markets. It is evident that the sales
of frozen goods are recovering from the distress of the financial crisis and
that the high-quality vegetable mixtures are gaining popularity. Positive
trends may also be seen in the HoReCa sector. 

The turnover of the fish and fish products business segment was during the
period of the 6 months of 2012 most influenced by the decreased price of raw
fish. The average market price of raw fish and fillet has decreased, if
compared to the same period previous year, by approximately 27%, which quite
naturally has had an effect on the turnover results. The Finnish market being
the main target market of fish sales for Premia may be characterised by
aggressive competition as to prices.  Additionally the price pressure of
private label products is increasing.  Due to the tough competition conditions
Premia is mainly focused on the products with higher additional value. Premia
has launched several novelties, whereas the Iso-Grilli group of products, which
gained popularity already two years ago, has been renewed. While summarising
the 6 months period, the turnover of the fish business segment has decreased by
2%, i.e. 415 thousand euro, if compared to the same period previous year. 



Turnover by target market       Q1    Q1    Q2    Q2      6 months      6 months
 (MEUR)                       2012  2011  2012  2011          2012          2011
Finland                        6.7   6.3   7.9   8.5          14.6          14.9
Estonia                        4.9   4.7   7.5   7.5          12.4          12.2
Latvia                         2.4   2.3   3.7   3.6           6.1           5.9
Russia                         1.5   1.9   3.3   4.3           4.8           6.2
Lithuania                      1.6   1.4   3.6   3.6           5.2           5.1
Other markets                    0     0   0.1   0.1           0.2           0.1
Total                         17.1  16.7  26.1  27.6          43.2          44.2



While summarising the 6 months period, the best turnover result has been
achieved in the Latvian market, where the growth has been 4%, i.e. 0.2 million
euro. However, it must be noted that also other Baltic markets have improved
their results, if compared to the first 6 months of 2011 – Estonia by 1.7% and
Lithuania by 1.9%. The results of the 6 months of 2011 were not reached in
Finland and Russia. In the Finnish market, the turnover results suffered due to
the decrease of market prices as referred to above. In Russia, Premia is
continuously reorganising its product portfolio. Due to the policy applied by
retail chains, novelties were launched only in the end of May.  The assortment
of Khladokombinat No. 1 is being reviewed and less popular and products driving
inefficient production are removed from the portfolio, which in turn has had a
planned effect on the turnover results. As in the St. Petersburg’s market
Premia is engaged only in the sales of ice cream, the effects of cold spring
and cool June cannot be compensated on the account of other business segments
and the weather conditions there had a significant adverse effect on the
consumption of ice cream. 


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