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PRF: AS PRFoods’ unaudited preliminary consolidated turnover of the 4th quarter and 12 months of the 2019/2020 financial year

Teade

PRFoods' unaudited preliminary consolidated turnover in 4(th) quarter of the
fiscal year 2019/2020 amounted to EUR 15.11 million euros, decreased by 29.5%
compared to the same period a year ago (4Q 2018/2019: 21.42 million euros). The
preliminary turnover of the first 12 months of the financial year was 78.34
million euros (12m 2018/2019: 85.61 million euros).

  * The Q4 decline in sales was 29.5%; including sales increase in retail sector
    by 7.3%, sales decrease in HoReCa sector by 65.0% and in wholesale sector by
    49.6% (partly also influenced by HoReCa sector) compared to the same period
    previous year;

  * The 12-months sales decrease compared the same period a year ago was 8.5%,
    mainly affected by lower sales figure in the 4(th) quarter. During
    2019/2020 the product portfolio experienced a change where raw fish and
    fillets' segment increased by 4 pp and smoked products declined accordingly.

Indrek Kasela, CEO, PRFoods :

?Last  quarter was defined by the fact that most countries took drastic measures
to combat COVID-19 pandemic. PRFoods' main markets, Finland and UK, closed 100%
HoReCa   markets,  except  for  takeaways.  Similarly,  passenger  ferries,  air
transport  and hotels were closed, which has been important sector in our sales.
Finland  and UK  have opened  restaurants in  June and July respectively, albeit
with  restrictions.  In  Baltic  States,  including  Estonia,  HoReCa sector has
recovered rapidly and spread of virus has been contained. Already in June we saw
most  of our  markets becoming  more lively,  also prices  recovered. HoReCa was
closed  also in  many other  countries in  Europe and  Asia, where we export our
products. We saw increased sales in retail and people shopped more.

COVID-19 made salmon and trout prices very volatile, which decreased ca 30% over
the  same periood  last year.  Primarly it  impacted sales  and prices  of fresh
fish,  but at  the same  time we  saw no  negative impact  on demand.  Quite the
opposite, we have increased our market share in retai chains in fresh fish whole
sale.  On positive  side, we  can mention  that despite  of drastic drop in fish
prices,  we have managed to maintain price levels, including in smoked products,
compared  to  last  year.  In  recognition  of  PRFoods,  all our factories were
functioning  during  the  crisis.  Also  we  managed  to increase our volumes in
retail, particularly in Baltic States both in fresh fish and smoked products. We
must  take into account  that according to  OECD, the decline  in tourism sector
will  be 45-70% due to COVID-19 and we cannot  assume full recovery of HoReCa in
2020/21. PRFoods  took  already  earlier  direction  to increase sales in retail
chains,  also in fresh fish sales to retail  and in market share. We also seeing
consolidation of market share to stronger players.

PRFoods  has been receiving COVID-19 subsidies mostly related to labour. We have
also reduced our cost base. We must thank governments of Estonia, Finland and UK
for  developing rapid support  mechanisms for industries.  Considering that food
production  is  of  strategic  importance,  we  have  prepared  for next wave of
pandemic.  In case COVID-19 new waves will not be as drastic in Europe and Asia,
we  can be optimistic  about next financial  year. Bigger investments, including
automatization  of  factories,  are  underway  and  we are launching several new
products  for retail markets  for Europe and  elsewhere. Brexit in  UK has given
certain  advantages to local producers, incl John  Ross Jr. and already today we
can  see some positive impact, incl on profitability , as domestic retail chains
prefer  local producers  for supply  security. We  see increased  competition in
Finland,  as due to fall in exports,  lots of local producers are refocussing on
domestic  market. Our strength and  advantage is our fish  farming, that give us
competitive  edge over other processors. We have put lot of focus on development
of  fish farming in Estonia,  where it can be  strategically important sector on
state level."

In  the 4(th) quarter of the financial year  sales in both fresh fish and smoked
fish  product groups  declined. Total  turnover of  raw fish and fillets product
group in the financial year remained at level of the previous financial year and
accounted  for  46% of  the  total  product  portfolio (12m 2018/2019: 42%). The
turnover of smoked products decreased by 18.4%, resulting in the product group's
share of the total portfolio decreasing to 38% (12m 2018/2019: 43%).

+--------+--------+--------+-------+-------+---------+---------+-------+-------+
|Turnover|        |        |       |       |         |         |       |       |
|by      |        |        |       |       |         |         |       |       |
|product |        |        |       |       |         |         |       |       |
|groups, |        |        |Change,|Change,|         |         |Change,|Change,|
|mln EUR |4Q 19/20|4Q 18/19|EUR    |%      |12m 19/20|12m 18/19|EUR    |%      |
+--------+--------+--------+-------+-------+---------+---------+-------+-------+
|Raw fish|        |        |       |       |         |         |       |       |
|and     |        |        |       |       |         |         |       |       |
|fillets |7.28    |9.14    |-1.86  |-20.3% |35.97    |35.88    |0.09   |0.3%   |
+--------+--------+--------+-------+-------+---------+---------+-------+-------+
|Smoked  |        |        |       |       |         |         |       |       |
|products|6.05    |9.06    |-3.00  |-33.2% |30.13    |36.92    |-6.78  |-18.4% |
+--------+--------+--------+-------+-------+---------+---------+-------+-------+
|Other   |        |        |       |       |         |         |       |       |
|fish    |        |        |       |       |         |         |       |       |
|products|1.77    |3.20    |-1.43  |-44.7% |12.18    |12.60    |-0.42  |-3.3%  |
+--------+--------+--------+-------+-------+---------+---------+-------+-------+
|Other   |        |        |       |       |         |         |       |       |
|revenue |0.00    |0.02    |-0.02  |-95.8% |0.06     |0.21     |-0.15  |-72.9% |
+--------+--------+--------+-------+-------+---------+---------+-------+-------+
|Total   |15.11   |21.42   |-6.31  |-29.5% |78.34    |85.61    |-7.26  |-8.5%  |
+--------+--------+--------+-------+-------+---------+---------+-------+-------+

By  customer groups, the sales growth of  retail chains in the 4(th) quarter was
7.3%, and  in the HoReCa and wholesale  sectors the sales decreased by 65.0% and
49.6%, respectively. During the financial year, the largest decrease in turnover
was in the HoReCa sector - 16.1%.

+---------+--------+--------+-------+-------+---------+---------+-------+-------+
|Turnover |        |        |       |       |         |         |       |       |
|by client|        |        |       |       |         |         |       |       |
|groups,  |        |        |Change,|Change,|         |         |Change,|Change,|
|mln EUR  |4Q 19/20|4Q 18/19|    EUR|      %|12m 19/20|12m 18/19|    EUR|      %|
+---------+--------+--------+-------+-------+---------+---------+-------+-------+
|Retail   |        |        |       |       |         |         |       |       |
|chains   |    9.24|    8.61|   0.63|   7.3%|    33.52|    36.28|  -2.76|  -7.6%|
+---------+--------+--------+-------+-------+---------+---------+-------+-------+
|Wholesale|    3.70|    7.34|  -3.64| -49.6%|    25.69|    28.22|  -2.53|  -9.0%|
+---------+--------+--------+-------+-------+---------+---------+-------+-------+
|HoReCa   |    1.81|    5.17|  -3.36| -65.0%|    16.72|    19.92|  -3.20| -16.1%|
+---------+--------+--------+-------+-------+---------+---------+-------+-------+
|Other    |        |        |       |       |         |         |       |       |
|revenue  |    0.36|    0.30|   0.06|  21.8%|     2.41|     1.18|   1.22| 103.5%|
+---------+--------+--------+-------+-------+---------+---------+-------+-------+
|Total    |   15.11|   21.42|  -6.31| -29.5%|    78.34|    85.61|  -7.26|  -8.5%|
+---------+--------+--------+-------+-------+---------+---------+-------+-------+

The  three largest  markets had  an aggregated  turnover of  12.74 million euros
accounting  for 84.3% of total sales in  the 4(th) quarter of the financial year
compared  to the sales of 19,22 million euros and the share of 89.7% in the same
period a year ago. Notably have increased sales to Latvia.

+-----------+--------+--------+-------+-------+---------+---------+-------+-------+
|Turnover by|        |        |       |       |         |         |       |       |
|countries, |        |        |Change,|Change,|         |         |Change,|Change,|
|mln EUR    |4Q 19/20|4Q 18/19|    EUR|      %|12m 19/20|12m 18/19|    EUR|      %|
+-----------+--------+--------+-------+-------+---------+---------+-------+-------+
|Finland    |    9.69|   14.99|  -5.31| -35.4%|    50.86|    59.83|  -8.97| -15.0%|
+-----------+--------+--------+-------+-------+---------+---------+-------+-------+
|Great      |        |        |       |       |         |         |       |       |
|Britain    |    1.65|    2.84|  -1.19| -41.9%|    10.35|    12.09|  -1.74| -14.4%|
+-----------+--------+--------+-------+-------+---------+---------+-------+-------+
|Estonia    |    1.40|    1.38|   0.02|   1.5%|     7.02|     5.77|   1.25|  21.7%|
+-----------+--------+--------+-------+-------+---------+---------+-------+-------+
|Latvia     |    1.34|    0.54|   0.80| 149.3%|     4.59|     1.84|   2.75| 149.9%|
+-----------+--------+--------+-------+-------+---------+---------+-------+-------+
|Other      |        |        |       |       |         |         |       |       |
|countries  |    1.03|    1.66|  -0.64| -38.2%|     5.52|     6.08|  -0.57|  -9.3%|
+-----------+--------+--------+-------+-------+---------+---------+-------+-------+
|Total      |   15.11|   21.42|  -6.31| -29.5%|    78.34|    85.61|  -7.26|  -8.5%|
+-----------+--------+--------+-------+-------+---------+---------+-------+-------+

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