PRF: Consolidated Unaudited Interim Report of AS PRFoods for 3rd quarter of 2018 and 3 months of 2018/2019 financial year
Comunicato Precedente
Comunicato Successivo
Management commentary
We remind you that since we changed our financial year, the last financial year was extended to 18 months. The financial year that began on 01.07.2018 is of standard length and ends 30.06.2019. In the report, the comparable data from the 3rd quarter of 2017 is used.
The Q3 results of PRFoods indicate that the chosen strategy is bearing fruit. We took the direction to margin improvement and discontinuing activities in lower margin sectors and this has started to manifest itself in results. Gross profit growth by 21% is very positive. We have also increased our own brand's share in retail, including in Estonia. The UK sales have been impacted by a very volatile UK Sterling since Brexit vote. Q3 operating results and EBITDA was impacted by one-time bonuses paid for previous financial year, that temporarily hiked our labour costs. Considering that the major salary increases in the company took place last year, we do not see any short-term pressure on wages. We have also started to consolidate parallel functions in the group companies and moving the group's support services to regions with more optimal costs.
New investments programme is on track and from 2019 we are moving to only using environmentally sustainable packaging, starting from Estonia first.
Biomass revaluation was significantly lower compared to same period last year. There are mainly two reasons for that, we started the season with lower biomass volume and the biomass growth in the beginning of the season was slower, but at the same time better weather in Q3 allowed for additional growth and we delayed most of harvesting until November. Hence the biomass revaluation was transferred to Q4.
3 months consolidated results are as follows:
- Unaudited consolidated revenue 19.39 million euros, an increase by +1.40 million euros, i.e. +7.8%.
- Gross margin 15.2%, an increase by +1.6 percentage points i.e. +11.9%.
- Positive impact from revaluation of biological assets +0.07 million euros (3Q 2017: positive impact +1.07 million euros).
- Negative effect of one-offs to the result -0.01 million euros (3Q 2017: negative influence -0.28 million euros).
- EBITDA from operations +1.06 million euros, a decrease by -0.15 million euros.
- EBITDA +1.12 million euros, a decrease by -0.88 million euros (without one-off effects EBITDA +1.13 million euros, a decrease by -1.15 million euros).
- The operating profit +0.57 million euros, a decrease by -0.95 million euros (without one-off effects operating profit +0.58 million euros, a decrease by -1.22 million euros).
- Net profit +0.14 million euros, a decrease by -0.97 million euros (without one-off effects net profit +0.15 million euros, a decrease by -1.23 million euros).
Q4 forecast meets the management's expectations and the management remains positive about the outlook and improved profitability.
Quarterly presentation will be published on our website latest at 7th of December.
KEY RATIOS
| Income Statement, EUR mln | Q3 2018 | Q3 2017 | 18m 2017/2018 |
| Sales | 19.4 | 18.0 | 118.5 |
| Gross profit | 3.0 | 2.5 | 14.7 |
| EBITDA from operations | 1.1 | 1.2 | 5.8 |
| EBITDA | 1.1 | 2.0 | 4.2 |
| EBIT | 0.6 | 1.5 | 1.5 |
| EBT | 0.4 | 1.3 | 0.5 |
| Net profit (-loss) | 0.1 | 1.1 | 0.1 |
| Gross margin | 15.2% | 13.6% | 12.4% |
| Operational EBITDA margin | 5.4% | 6.7% | 4.9% |
| EBITDA margin | 5.8% | 11.1% | 3.5% |
| EBIT margin | 3.0% | 8.5% | 1.3% |
| EBT margin | 1.8% | 7.3% | 0.4% |
| Net margin | 0.7% | 6.2% | 0.05% |
| Operating expense ratio | 13.5% | 11.1% | 10.5% |
| Balance Sheet, EUR mln | 30.09.2018 | 30.09.2017 | 30.06.2018 |
| Net debt | 21.9 | 16.7 | 18.1 |
| Equity | 24.1 | 23.7 | 23.3 |
| Working capital | 2.0 | 5.1 | 2.8 |
| Assets | 64.5 | 68.0 | 65.5 |
| Liquidity ratio | 1.1x | 1.2x | 1.1x |
| Equity ratio | 37.4% | 34.9% | 35.6% |
| Debt to total assets | 47.6% | 41.3% | 43.7% |
| Gearing ratio | 0.6x | 0.7x | 0.6x |
| Net debt-to-EBITDA | 3.8x | 8.0x | 3.1x |
| ROE | 0.1% | -1.4% | 0.2% |
| ROA | 0.0% | -0.6% | 0.1% |
Consolidated statement of financial position
| EUR '000 | 30.09.2018 | 30.09.2017 | 30.06.2018 |
| ASSETS | |||
| Cash and cash equivalents | 2,788 | 6,420 | 5,960 |
| Receivables and prepayments | 4,219 | 6,102 | 4,706 |
| Inventories | 11,782 | 8,641 | 12,678 |
| Biological assets | 7,825 | 10,551 | 6,498 |
| Total current assets | 26,614 | 31,714 | 29,842 |
| Deferred income tax | 26 | 226 | 153 |
| Long-term financial investments | 134 | 102 | 134 |
| Tangible fixed assets | 14,528 | 13,562 | 12,764 |
| Intangible assets | 23,195 | 22,383 | 22,604 |
| Total non-current assets | 37,883 | 36,273 | 35,655 |
| TOTAL ASSETS | 64,497 | 67,987 | 65,497 |
| EQUITY AND LIABILITIES | |||
| Loans and borrowings | 13,242 | 9,460 | 12,562 |
| Payables | 11,179 | 16,831 | 14,254 |
| Government grants | 242 | 307 | 216 |
| Total current liabilities | 24,663 | 26,598 | 27,032 |
| Loans and borrowings | 11,480 | 13,661 | 11,487 |
| Payables | 519 | 0 | 0 |
| Deferred tax liabilities | 2,426 | 2,843 | 2,441 |
| Government grants | 1,306 | 1,156 | 1,226 |
| Total non-current liabilities | 15,731 | 17,660 | 15,154 |
| TOTAL LIABILITIES | 40,394 | 44,258 | 42,186 |
| Share capital | 7,737 | 7,737 | 7,737 |
| Share premium | 14,007 | 14,007 | 14,007 |
| Treasury shares | -390 | -390 | -390 |
| Statutory capital reserve | 48 | 48 | 48 |
| Currency translation reserve | 31 | 344 | 7 |
| Retained profit (-loss) | 2,004 | 1,988 | 1,904 |
| Equity attributable to parent | 23,437 | 23,734 | 23,313 |
| Non-controlling interest | 666 | -5 | -2 |
| TOTAL EQUITY | 24,103 | 23,729 | 23,311 |
| TOTAL EQUITY AND LIABILITIES | 64,497 | 67,987 | 65,497 |
Consolidated statement of profit or loss and other comprehensive income
| EUR '000 | Q3 2018 | Q3 2017 | 18m 2017/2018 |
| Sales | 19,393 | 17,990 | 118,499 |
| Cost of goods sold | -16,437 | -15,539 | -103,811 |
| Gross profit | 2,956 | 2,451 | 14,688 |
| Operating expenses | -2,623 | -1,992 | -12,423 |
| Selling and distribution expenses | -1,843 | -1,375 | -8,841 |
| Administrative expenses | -780 | -617 | -3,582 |
| Other income | 238 | 513 | 1,059 |
| Other expenses | -71 | -523 | -1,309 |
| Fair value adjustment on biological assets | 73 | 1,072 | -524 |
| Operating profit (-loss) | 573 | 1,521 | 1,491 |
| Financial income | 4 | 1 | 10 |
| Financial expenses | -226 | -209 | -1,034 |
| Profit (-loss) before tax | 351 | 1,313 | 467 |
| Income tax | -209 | -205 | -410 |
| Net profit (-loss) for the period | 142 | 1,108 | 57 |
| Net profit (-loss) attributable to: | |||
| Owners of the company | 99 | 1,113 | 59 |
| Non-controlling interests | 43 | -5 | -2 |
| Total net profit (-loss) | 142 | 1,108 | 57 |
| Other comprehensive income (-loss) that may subsequently be classified to profit or loss: | |||
| Foreign currency translation differences | 24 | -76 | -421 |
| Total comprehensive income (-expense) | 166 | 1,032 | -364 |
| Total comprehensive income (-expense) attributable to: | |||
| Owners of the Company | 123 | 1,037 | -362 |
| Non-controlling interests | 43 | -5 | -2 |
| Total comprehensive income (-expense) for the period | 166 | 1,032 | -364 |
| Profit (-loss) per share (EUR) | 0.00 | 0.03 | -0.01 |
| Diluted profit (-loss) per share (EUR) | 0.00 | 0.03 | -0.01 |
Indrek Kasela
AS PRFoods
Member of the Management Board
Phone: +372 452 1470
[email protected]
www.prfoods.ee
Attachment
- PRF_interim_3m2018_2019
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