For Premia Foods, the 1st quarter of 2014 may be characterised by rapid increase of turnover and improved profitability:
- The unaudited consolidated turnover increased by 11.9%, i.e. 2.2 million euro, reaching 20.5 million euro, if compared to the 1st quarter of 2013.
- The gross margin of the first three months of 2014 was 23.3% which is by 2.7 percentage points higher than a year earlier. The gross margin increased in all business segments, the fastest increase came from the ice cream business segment where the gross margin increased by 8.8 percentage points.
- The gross profit increased by 1.0 million euro, i.e. by 26.6%. The greatest monetary increase came from the fish business segment where the gross profit increase by 0.5 million euro during the reporting period. The ice cream business segment followed with the increase of 0.3 million euro.
- The EBITDA from operations was 0.6 million euro, which is a record-making result, exceeding the result of the previous year by 1.0 million euro.
- The operating profit was -1.2 million euro, which is by 0.1 million euro better than the result of the 1st quarter of 2013, whereas for the first time in Premia’s history the ice cream business segment generated operating profit during the low season of ice cream sales.
- The net profit was -1.1 million euro, exceeding the result of the previous year by 4.2%.
- The operating expense ratio, i.e. its proportion in turnover, decreased by 3.6 percentage points, reaching 23.5%, if compared to the same period of the previous year.
Loss from the fish stock revaluation during the first quarter was 1.1 million euro, during the 1st quarter of 2013 the respective number was -0.2 million euro. The main reason for the change was the recovery from the restrictions established by the Swedish Board of Agriculture, the aim was to return to regular farming volumes. By the end of the 1st quarter of 2014, the proportion of juveniles reached 60% of the biological assets, whereas it was only 39% one year earlier. Characteristically to the fish farming sector, the fair value of juveniles is accounted at cost price, not at the market price. In addition to the above, if during the 1st quarter of 2013 the market price of rainbow trout increased rapidly (+27%, if compared to 31.12.2012), then during the 1st quarter of 2014 the price decreased by 3%, if compared to the year-end.
The fluctuations of the Russian ruble and the Swedish krona resulted in the exchange rate loss of 138 thousand euro; 84% of which, i.e. 116 thousand euro, was unrealised loss from the revaluation of claims.
| KEY RATIOS |
| Profit & Loss, EUR mln | formula | Q1 2014 | Q1 2013 | ||
| Sales | 20.5 | 18.3 | |||
| Gross profit | 4.8 | 3.8 | |||
| EBITDA from operations | before one-offs and fair value adjustment | 0.6 | -0.4 | ||
| EBITDA | -0.6 | -0.7 | |||
| EBIT | -1.2 | -1.3 | |||
| Net profit | -1.1 | -1.2 | |||
| Gross margin | Gross profit / Net sales | 23.3% | 20.6% | ||
| Operational EBITDA margin | EBITDA from operations/Net sales | 2.9% | -2.2% | ||
| EBIT margin | EBIT / Net sales | -5.8% | -7.3% | ||
| Net margin | Net earnings / Net sales | -5.6% | -6.5% | ||
| Operating expense ratio | Operating expenses / Net sales | 23.5% | 27.1% |
| Balance Sheet, EUR mln | formula | 31.03.14 | 31.03.13 | ||
| Net debt | Short and Long term Loans and Borrowings - Cash | 13.6 | 13.2 | ||
| Equity | 36.1 | 35.3 | |||
| Working capital | Current Assets - Current Liabilities | 8.5 | 10.4 | ||
| Assets | 63.8 | 62.4 | |||
| Liquidity ratio | Current Assets / Current Liabilities | 1.47 | 1.73 | ||
| Equity ratio | Equity / Total Assets | 56% | 57% | ||
| Gearing ratio | Net Debt / (Equity + Net Debt) | 27% | 27% | ||
| Net debt-to-EBITDA | Net Debt / EBITDA from operations | 2.82 | 2.80 | ||
| ROE | Net Earnings / Average Equity | 3% | 0% | ||
| ROA | Net Earnings / Average Assets | 2% | 0% |
Consolidated statement of financial position
| EUR ‘000 | 31/03/2014 | 31/12/2013 | 31/03/2013 |
| Cash and cash equivalents | 1,447 | 1,314 | 1,776 |
| Receivables and prepayments | 8,036 | 8,356 | 7,861 |
| Inventories | 12,958 | 10,258 | 10,909 |
| Biological assets | 4,111 | 6,270 | 4,078 |
| Total current assets | 26,552 | 26,198 | 24,624 |
| Deferred income tax assets | 611 | 557 | 548 |
| Long-term financial investments | 136 | 127 | 129 |
| Investment property | 2,084 | 2,084 | 2,084 |
| Property, plant and equipment | 12,094 | 12,500 | 12,488 |
| Intangible assets | 22,370 | 22,373 | 22,500 |
| Total non-current assets | 37,295 | 37,641 | 37,748 |
| TOTAL ASSETS | 63,847 | 63,839 | 62,372 |
| Borrowings | 6,984 | 6,035 | 4,129 |
| Payables and prepayments | 11,059 | 10,057 | 10,095 |
| Total current liabilities | 18,043 | 16,092 | 14,224 |
| Borrowings | 8,050 | 8,470 | 10,827 |
| Deferred income tax liabilities | 476 | 716 | 593 |
| Government grants | 1,212 | 1,264 | 1,438 |
| Total non-current liabilities | 9,738 | 10,450 | 12,857 |
| Total liabilities | 27,781 | 26,542 | 27,081 |
| Share capital | 19,342 | 19,342 | 19,342 |
| Share premium | 16,026 | 16,026 | 16,026 |
| Statutory capital reserve | 6 | 6 | 6 |
| Other reserves | 0 | 62 | 46 |
| Currency translation differences | 715 | 748 | 504 |
| Retained earnings | -23 | 1,113 | -633 |
| Equity attributable to equity holders of the parent | 36,066 | 37,297 | 35,291 |
| Total equity | 36,066 | 37,297 | 35,291 |
| TOTAL LIABILITIES AND EQUITY | 63,847 | 63,839 | 62,372 |
Consolidated statement of profit or loss and other comprehensive income
| EUR ‘000 | Q1 2014 | Q1 2013 | ||
| Revenue | 20,450 | 18,277 | ||
| Cost of goods sold | -15,679 | -14,507 | ||
| Gross profit | 4,771 | 3,770 | ||
| Operating expenses | -4,813 | -4,951 | ||
| Sales and marketing expenses | -3,896 | -3,948 | ||
| General and administrative expenses | -917 | -1,003 | ||
| Other income and expenses, net | -6 | 58 | ||
| Revaluation of biological assets | -1,129 | -203 | ||
| Operating loss | -1,177 | -1,326 | ||
| Finance income | 11 | 101 | ||
| Finance costs | -288 | -101 | ||
| Loss before income tax | -1,454 | -1,327 | ||
| Corporate income tax | 318 | 141 | ||
| Net loss for the period | -1,136 | -1,186 | ||
| Other comprehensive income / expense that might subsequently classified to profit or loss: | ||||
| Currency translation differences | -33 | 19 | ||
| Other comprehensive income /expense | -33 | 19 | ||
| Total comprehensive expense | -1,169 | -1,167 | ||
| Net loss for the period: | ||||
| Attributable to equity holders of the parent | -1,136 | -1,186 | ||
| Net loss for the period | -1,136 | -1,186 | ||
| Comprehensive expese for the period: | ||||
| Attributable to equity holders of the parent | -1,169 | -1,167 | ||
| Total comprehensive expense | -1,169 | -1,167 | ||
| Earnings per share | ||||
| Basic earnings per share (EUR) | -0.03 | -0.03 | ||
| Diluted earnings per share (EUR) | -0.03 | -0.03 |
Additional information:
Katre Kõvask
AS Premia Foods
Chairman of the Management Board
T: +372 6 033 800
katre.kovask@premia.ee
www.premiafoods.eu
