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PRF: Consolidated turnover of AS Premia Foods, I quarter 2011

Teade

The consolidated turnover of AS Premia Foods in the first quarter of 2011 was
16.6 million euro having grown by 11.1%, i.e. 1.7 million euro if compared on
yearly basis. 

Tallinn, Estonia, 2011-04-12 15:05 CEST (GLOBE NEWSWIRE) --
In the first quarter the greatest proportion of the turnover of the company was
traditionally generated from the fish and fish products business segment,
formulating altogether 44.7% of the turnover and the second position was
assumed by the frozen goods, which generated 29.5% of the turnover. Business
segments wise the third position is held by ice cream, which generated 24.2% of
the turnover of the first quarter. 



Proportions of business segments in the turnover  Q1 2011  Q1 2010
Fish and fish products                              44.7%    51.7%
Frozen goods                                        29.5%    33.5%
Ice cream                                           24.1%    12.7%
Other                                                1.7%     3.0%



The greatest input to the turnover growth in the first quarter came from ice
cream business segment, which grew over two times if compared to the same
period last year, i.e. 110.4%. At the same time, fish and fish products
business segment and frozen goods segment continue with turnovers comparable to
the first quarter of 2010. 



Business segment turnover (M EUR)  Q1 2011  Q1 2010  Change (%)
---------------------------------------------------------------
Ice cream                              4,0      1,9      110,4%
---------------------------------------------------------------
Frozen goods                           4,9      5,0       -2,2%
---------------------------------------------------------------
Fish and fish products                 7,4      7,8       -4,1%
---------------------------------------------------------------
Other                                  0,3      0,3       -5,5%
---------------------------------------------------------------
Total                                 16,6     15,0       11,1%
---------------------------------------------------------------



There are two main reasons for the remarkable growth of the ice cream business
segment. Firstly, as of the first quarter 2011 the turnover of ice cream
includes the turnover of Khladokombinat No. 1 in St. Petersburg, which was not
consolidated into the turnover of the first quarter of 2010 due to the fact
that the company was not yet owned by Premia Foods. Secondly, the company
managed to outperform the set targets in all the Baltic markets and by virtue
of strong product portfolios achieve great results in the ice cream business
segment despite to the low season. The growth of the ice cream business segment
in the Baltics, excluding Khladokombinat No. 1, was 12%. 

The frozen goods business segment did surprisingly well as the turnover was in
the same level as in the first quarter of 2010 and the fall-behind experienced
in the previous year has stopped. This indicated clearly that the
reorganisations in the product portfolios conducted during the financial crisis
and the new more forcible approach in the Lithuanian market has resulted in
success and enabled to keep up the sales volumes. 

Also the turnover generated in the fish and fish products business segment
exceeded the set expectations. The mere 4% difference compared to the results
of the same period of 2010 is above all remarkable due to the fact that the
material part of the turnover seasonality related to Easter fell into the first
quarter in 2010; however, in 2011 the holiday having positive impact on the
fish consumption will be only in the second quarter. The turnover achieved in
the first quarter 2011, which is almost equal to the result of the same period
of 2010 is above all reflecting the great efforts made by the sales team and
the positive impact gained from the development of the product portfolio
conducted in the Finnish and Estonian markets. In addition to that, the sales
of the chilled packed fish products in Latvia and Lithuania have also
increased. 

From altogether five geographical target markets of Premia Foods, the greatest
proportion in the turnover in the first quarter of 2011 was generated from the
Finnish market, input of which was 38% of the total turnover. Finnish market
was followed by Estonian, Latvian and Russian markets and the fifth position
was held by Lithuania. 



Turnover of geographical markets (M EUR)  Q1 2011  Q1 2010  Change (%)
----------------------------------------------------------------------
Finland                                       6,3      7,0       -9,4%
----------------------------------------------------------------------
Estonia                                       4,7      4,3        8,7%
----------------------------------------------------------------------
Latvia                                        2,3      2,3       -0,9%
----------------------------------------------------------------------
Lithuania                                     1,4      1,3        9,1%
----------------------------------------------------------------------
Russia                                        1,9        0  NA        
----------------------------------------------------------------------
Total                                        16,6     15,0       11,1%
----------------------------------------------------------------------



The growth in turnover in the first quarter came from the Baltics and Russia.

The Baltic markets are the main target markets of ice cream and frozen goods,
but in also fish and fish products are sold in these countries, in lesser
volume though. The results of the first quarter, which have resulted in
turnover growth of approximately 9% in Estonia and Lithuania should be
considered success but also the result comparable to the same period of 2010
achieved in Latvia is of the opinion of the management a good outcome. 

Finland is the main target market of fish and fish products for Premia Foods
and as mentioned above, the result of the first quarter of 2010 has been
materially influenced by the fact of the Easter falling into the end of the
quarter. Due to the same, the sales volumes went materially up during the
referred period and the year's result falling behind only by 700,000 euro
indicates that the sales activities in Finland have been a success and the
positions in the market has been maintained. 

In Russian product portfolio the first quarter has mainly been represented by
ice cream, the proportion of frozen goods is still unremarkable. The achieved
turnover of 1.9 million euro is in compliance with the management's
expectations and the low season occurred due to weather conditions. The Russian
ice cream market, which is similar to Lithuanian market, can be characterised
by remarkable dependence on the weather conditions due to which the ice cream
consumption per capita may differ up to 8 times average during winter and
summer periods. 






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