PRF: Unaudited consolidated turnover of AS PRFoods for 3rd quarter and 9 months of 2017

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| Source: PRFoods
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Tallinn, Estonia, 2017-10-13 09:02 CEST (GLOBE NEWSWIRE) --  

In the 3rd quarter of 2017 the unaudited consolidated sales revenue of PRFoods increased by +72.1% y-o-y, i.e. by +7.6 million euros, reaching the level of 18.1 million euros. Comparable sales revenue increased by +9.0%, i.e. +1.0 million euros. PRFoods is pleased with the revenue in 3rd quarter.

Majority of growth in comparable sales is contributed to increasing prices for our products. As raw material prices increased for last 9 months, in order to maintain our margins, it was necessary to increase also our sales prices and this process is being executed. Salmon prices have started to decrease, which hopefully will help to boost our margins in Q4. Rainbow trout prices have also started to decrease. One must remain cautious as volatility in raw material prices continues as does global demand for fish, hence access to sustainable and price competitive raw material is very important. The acquisition of John Ross Jr., Coln Valley and Trio Trading has increased Group’s sales by 6,6 million euros and will further support of strategy of international growth and profitability.

The sales revenue in 9 months increased by +11.2 million euros, i.e. +36.8% compared to 9 months 2016. Comparable sales revenue increased at the same period +4.6 million euros, i.e. +15.0%. Sales quantity increased in 9 months by +6.6%, i.e. +307 tonnes compared to previous year, reaching the level of 4,988 tonnes. Comparable sales volume decreased by -9.8%, i.e. -457 tonnes. The decrease in quantities is in line with Group's plans, as PRFoods is continuously removing low-margin products from its product portfolio. PRFoods’ pro forma sales revenue would have been 79.6 million euros if all companies would have been in Group since beginning of the year.

Revenue by product groups 

Revenues mln EUR Q1 2017 Q1 2016 Q2 2017 Q2 2016 Q3 2017 Q3 2016 9m 2017 9m 2016 9m 2017/  9m 2016 Change % Proportion
Smoked products 4.0 3.6 5.9 3.9 9.2 3.9 19.1 11.4 +7.7 +67.9% 45.7%
Other fish products 1.7 1.5 2.3 1.8 2.0 1.5 6.0 4.8 +1.2 +23.8% 14.4%
Raw fish and fillets 4.9 5.1 4.9 4.1 6.7 5.1 16.5 14.3 +2.2 +15.2% 39.4%
Other 0.0 0.0 0.0 0.0 0.2 0.0 0.2 0.0 +0.2 +764.1% 0.5%
Total 10.6 10.2 13.1 9.8 18.1 10.5 41.8 30.5 +11.2 +36.8% 100.0%

The largest increase compared to previous year in revenue came from the smoked products group, which increased by +7.7 million euros, i.e. +67.9%. Comparable sales revenue increased in this segment the most as well by +3.5 million euros, i.e. +30.4%. The revenue from the raw fish and fillets products group increased by +2.2 million euros, i.e. +15.2% and the revenue from the other fish product group increased by +1.2 million euros, i.e. +23.8%. Comparable increase in sales revenue in raw fish and fillets products group was +0.2 million euros, i.e. +1.1% and in other fish products group +1.0 million euros, i.e. +19.8%.

 Revenue by client segments

Revenues mln EUR Q1 2017 Q1 2016 Q2 2017 Q2 2016 Q3 2017 Q3 2016 9m 2017 9m 2016 9m 2017/  9m 2016 Change % Proportion
HoReCa 3.7 2.9 4.7 3.4 5.7 3.6 14.1 10.0 +4.1 +41.5% 33.7%
Retail chains 4.4 5.3 6.5 4.9 7.0 4.4 17.9 14.6 +3.3 +22.6% 42.8%
Wholesale 2.4 2.0 1.8 1.3 5.4 2.5 9.6 5.8 +3.8 +64.7% 22.9%
Other 0.1 0.0 0.1 0.1 0.1 0.1 0.2 0.2 +0.0 +23.8% 0.5%
Total 10.6 10.2 13.1 9.8 18.1 10.5 41.8 30.5 +11.2 +36.8% 100.0%

Based on client segments, the first 9 months’ revenue of 2017 increased the most in HoReCa sector, by +4.1 million euros, i.e. +41.5%. Revenue increased in retail chains sector by +3.3 million euros, i.e. +22.6% and in wholesale sector by +3.8 million euros, i.e. +64.7%. Comparable sales revenue increased in HoReCa sector by +2.8 million euros, i.e. +27.7%, in retail chains sector by +1.7 million euros, i.e. +11.8% and in wholesale sector by +0.1 million euros, i.e. +2.1%.

Revenue by target markets

Revenues mln EUR Q1 2017 Q1 2016 Q2 2017 Q2 2016 Q3 2017 Q3 2016 9m 2017 9m 2016 9m 2017/  9m 2016 Change % Proportion
Finland 9,0 8,3 10,5 8,0 13,0 9,0 32,5 25,3 +7,2 +28,6% 77,8%
Estonia 1,0 1,4 1,6 1,3 0,8 0,9 3,3 3,6 -0,3 -7,4% 8,0%
UK 0,0 0,0 0,0 0,0 3,2 0,0 3,2 0,0 +3,2 - 7,7%
Other 0,6 0,6 0,9 0,5 1,2 0,6 2,7 1,7 +1,0 +62,2% 6,5%
Total 10,6 10,2 13,1 9,8 18,1 10,5 41,8 30,5 +11,2 +36,8% 100,0%

Finnish revenue in first 9 months of 2017 increased by +7.2 million euros, i.e. +28.6%. The share of Finnish market formed 77.8% of the total revenue, having decreased by -4.9 percentage points compared to the same period last year.

First 9 months’ revenue of 2017 decreased in Estonia by -0.3 million euros, i.e. -7.4%. The proportion of the revenue from the Estonian market decreased by -3.8% percentage points in comparison with the same period last year.

UK’s market has become new main market for Group due to acquisition of new companies, sales revenue from this market was 3.2 million euros in 3rd quarter and share of the market was 7.7% of total revenue.

Revenue in other countries increased by +1.0 million euros in 9 months of 2017 and the proportion of revenue from these markets grew by +1.0 percentage points.

Indrek Kasela
AS PRFoods
Member of the Management Board
Phone: +372 452 1470
investor@prfoods.ee
www.prfoods.ee