AS PRFoods Unaudited Consolidated Interim Report 3d Quarter and 9 months 2022/23

Consolidated Unaudited Interim Report of AS PRFoods for the 3rd quarter and 9 months of 2022/2023 financial year

Updated with Estonian translation of interim report

PRFoods continues to operate now as Estonian-British group, having two productions facilities in Estonia and United Kingdom respectively. Fish farming operations are taking place only in Estonia, with further capacity expansions planned. Q3 and 9 months results show that downsizing operations was risky but proven right, as our profitability has substantially improved. EBITDA from operations improved from -1,1 meur year ago to 0,04 meur. Operating results was near zero when last year it was still -1,4 meur. We finished quarter with small profit compared to -4,5 meur loss last year (due to divestments). On 9 months basis our EBITDA from operations improved from -2,3 meur to 200,000 eur positive result, , while our sales were down 57%. Gross profit improved by 23% in absolute terms, which is very remarkable result. We finished 9 months with 800,000 eur profit compared to -6,6 million lass last year (incl one -off effect of divestments)While our products are in strong demand, the overall price increases have negative effect on purchase frequency. High inflation and high food prices persist, making consumption growth unlikely. Also high leverage of the group straddles the company with extreme cash flow management challenges. We believe with new farming licences we can re-establish PRFoods as regional leader in fish farming and processing. 2024 we see significant growth in sales to Finland and elsewhere in the region. Challenges remain, as for entire food processing sector, but I am very pleased with personal commitment and professionalism in our operating companies, John Ross Jr. and Saare Kala. Their effort has put the company on new lease of life.

KEY RATIOS

INCOME STATEMENT

mln EURunless indicated otherwise	3Q 2022/2023	2021/2022	3Q 2021/2022	2020/2021
Sales	3,7	42,1	7,4	58,7
Gross profit	1,1	3,1	-0,3	5
EBITDA from operations	0,0	-1,7	-1,1	-1,2
EBITDA	0,2	-2,1	-0,9	-1,3
EBIT	-0,1	-4,2	-1,4	-3,9
EBT	0,1	-8,2	-4,5	-5
Net profit (loss)	0,1	-8,2	-4,5	-5,2
Gross margin	28,7%	7,4%	-4,3%	8,50%
Operational EBITDA margin	10%	-4,1%	-15,5%	-2,1%
EBITDA margin	5,7%	-5,1%	-12,2%	-2,1%
EBIT margin	-1,9%	-9,9%	-19,2%	-6,6%
EBT margin	2,7%	-19,5%	-63,7%	-8,5%
Net margin	2,8%	-19,4%	-61,1%	-8,8%
Operating expense ratio	-37,1%	-17,1%	-15,6%	16,1%

BALANCE SHEET

mln EURunless indicated otherwise	31.03.2023	30.06.2022	31.03.2022	30.06.2021
Net debt	16,58	24,7	23,9	20,9
Equity	7,8	8,1	10,1	15,8
Working capital	0,8	-3,2	-2,9	-2,9
Assets	29,8	38,9	40	55,3
Liquidity ratio	1,0x	0,7x	1,0x	0,9x
Equity ratio	26,0%	20,7%	25,3%	28,6%
Gearing ratio	68,1%	75,4%	70,2	56,9%
Debt to total assets	0,8x	0,8x	0,8x	0,7x
Net debt to operating EBITDA	21,4x	-14,5x	21,4x	-16,9x
ROE	1,3%	-68,5%	-34,8%	-28,7%
ROA	0,3%	-17,3%	-9,4%	-9,1%

Consolidated Statement of Financial Position

EUR '000	31.03.2023	31.03.2022	30.06.2022
ASSETS
Cash and cash equivalents	457	119	110
Receivables and prepayments	3 093	3 669	2 567
Inventories	1 785	2 661	2 196
Biological assets	-	2 313	3 003
Total current assets	5 336	8 762	7 876

Deferred tax assets	-	97	93
Long-term financial investments	304	230	229
Tangible assets	6 766	9 017	8 882
Intangible assets	17 401	21 942	21 837
Total non-current assets	24 471	31 286	31 041
TOTAL ASSETS	29 806	40 048	38 917

EQUITY AND LIABILITIES
Interest-bearing liabilities	1 450	7 484	7 094
Payables and prepayments	3 055	4 004	3 978
Government grants	-	152	-
Total current liabilities	4 505	11 640	11 073

Interest-bearing liabilities	15 585	16 523	17 725
Payables and prepayments	-	-	204
Deferred tax liabilities	1 645	1 536	1 599
Government grants	321	226	265
Total non-current liabilities	17 551	18 285	19 792
TOTAL LIABILITIES	22 056	29 925	30 865

Share capital	7 737	7 737	7 737
Share premium	14 007	14 007	14 007
Treasury shares	- 390	- 390	- 390
Statutory capital reserve	51	51	51
Currency translation differences	261	815	839
Retained profit (loss)	- 14 162	- 11 819	- 14 391
Equity attributable to parent	7 504	10 401	7 853
Non-controlling interest	246	- 278	199
TOTAL EQUITY	7 750	10 123	8 052
TOTAL EQUITY AND LIABILITIES	29 806	40 048	38 917

Consolidated Statement of Profit or Loss And Other Comprehensive Income

EUR '000	3Q 2022/2023	3Q 2021/2022	9m 2022/2023	9m 2021/2022
Revenue	3 675	7 379	15 585	36 878
Cost of goods sold	-2 619	-7 698	-12 404	-34 270
Gross profit	1 056	-319	3 181	2 608

Operating expenses	-1 362	-1 149	-3 855	-5 853
Selling and distribution expenses	-621	-964	- 1 935	-4 213
Administrative expenses	-741	-185	-1 920	-1 640
Other income / expense	66	-198	-2	-136
Fair value adjustment on biological assets	170	246	0	314
Operating profit (loss)	-71	-1 420	-677	-3 067
Financial income / expenses	171	-3 283	1 619	-3 651
Profit (Loss) before tax	101	-4 703	942	-6 718
Income tax	2	192	-106	83
Net profit (loss) for the period	103	-4 511	836	-6 635

Net profit (loss) attributable to:
Owners of the Parent Company	153	-4 481	821	-6 641
Non-controlling interests	-51	-30	15	6
Total net profit (loss) for the period	102	-4 511	836	-6 635

Other comprehensive income (loss) that may subsequently be classified to profit or loss:
Foreign currency translation differences	-133	-140	-578	132
Total comprehensive income (expense)	-31	-4 651	258	-6 503

Total comprehensive income (expense) attributable to:
Owners of the Parent Company	20	-4 621	243	-6 509
Non-controlling interests	-51	-30	15	6
Total comprehensive income (expense) for the period	-31	-4 651	258	-6 503

Profit (Loss) per share (EUR)	0.00	-0.12	0.02	-0.17

Diluted profit (loss) per share (EUR)	0.00	-0.10	0.02	-0.15