Published: 2020-04-12 18:35:35 CEST
PRFoods
Company Announcement

PRF: AS PRFoods’ unaudited preliminary consolidated turnover of the 3rd quarter and 9 months of the 2019/2020 financial year

PRFoods’ unaudited preliminary consolidated turnover in 3Q of the fiscal year 2019/2020 (1Q 2020) amounted to EUR 18.49 million euros i.e. increased by 2.3% compared to the same period a year ago (18.08 million euros in 1Q 2019). Turnover of the first 9 months of the financial year was 63.24 million (9m 2018/2019: 64.19 million euros).

  • Q3 sales increased by 2,3%, raw fish and fillets growth was 23,8% and smoked products sales decreased by 12%.
  • HoReCa  dropped by 15,2% of which March impacted most by 36% decrease (in comparison  January decrease was 2,7% and February  3,8%), in March the emergency situation impacted HoReCa sales in Finland and Estonia already.
  • 9 months y-o-y sales decreased only by 1,5% and there has been change in product portfolio - raw fish and fillets grew 4% pp and share of smoked fish decreased by 5% pp. The share of raw fish of total sales is  45% and smoked products comprise 38%.

„As a result of Covid-19 epidemic, the customer behaviour has changed. We see growth in retail sales at the expense of HoReCa and increase of fresh fish sales. We believe that this trend is permanent and fits our long-term plans. HoReCa share in our sales historically has been around 20-30%, part of sales these  have been now transferred to retail“ commented Indrek Kasela, chairman of PRFoods. „We predict that fish prices will remain low until summer, as many international salmon buying high purchase power markets like USA and China are seeing decreased demand, which makes salmon and trout products more competitive with meat in our domestic markets. Most certainly we see some drop in sales in Q4, but at the same time we see no pressure on margins. One must remember that historically smoked products margins have been higher thant those of raw fish and fillets“.

The sales of the raw fish and fillets increased by 23.8% in 3Q compared to last year same period and the share of the product group increased by 8.7 percentage points. The sales of smoked fish product group decreased by 12.0% and the share of it decreased by 5.9 percentage points. The sales of other fish products decreased by 14.7% and the segment’s share by 2.6 percentage points.

Turnover by product groups, mln EUR3Q 19/203Q 18/19Change, EURChange, % 9m 19/209m 18/19Change, EURChange, %
Raw fish and fillets9.277.481.7823.8%28.6926.741.957.3%
Smoked products6.777.69-0.92-12.0%24.0827.86-3.78-13.6%
Other fish products2.432.84-0.42-14.7%10.419.401.0110.8%
Other revenue0.030.06-0.03-51.4%0.060.19-0.13-68.6%
Total 18.4918.080.412.3%63.2464.19-0.94-1.5%

The sales and share of wholesale client group increased by 17.2% and 4.9 percentage points, respectively. HoReCa sector sales declined 15.2% compared to same period last year of which decrease in March was 36%.

Turnover by client groups, mln EUR3Q 19/203Q 18/19Change, EURChange, % 9m 19/209m 18/19Change, EURChange, %
Retail chains7.367.52-0.16-2.2%24.2827.67-3.39-12.2%
Wholesale7.025.991.0317.2%22.0020.891.115.3%
HoReCa3.714.37-0.66-15.2%14.9214.750.171.2%
Other revenue0.400.200.20102.9%2.040.891.16130.9%
Total18.4918.080.412.3%63.2464.19-0.94-1.5%

The three largest markets had an aggregated turnover of 16.31 million euros accounting for 88.3% of total sales in 3Q 2019/2020 compared to 16.49 million euros the same period a year ago when the turnover of the largest markets accounted for 91.2% of the total sales. In quarterly comparison, the sales to Latvia has increased notably.

Turnover by countries,  mln EUR3Q 19/203Q 18/19Change, EURChange, % 9m 19/209m 18/19Change, EURChange, %
Finland12.1912.76-0.57-4.5%41.2044.26-3.06-6.9%
Great Britain2.462.60-0.15-5.7%8.709.10-0.40-4.4%
Estonia1.671.130.5447.6%5.624.920.7014.1%
Latvia0.840.140.70504.8%3.252.001.2562.3%
Other countries1.341.45-0.11-7.8%4.463.900.5614.5%
Total18.4918.080.412.3%63.2464.19-0.94-1.5%

About half the sales among other countries are from Belgium, Greece and France, with largely similar amounts each.

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