PRFOODS SALES HIT BY PANDEMIC – BUT OPTIMISM FOR FUTURE

PRFoods sales hit by pandemic – but optimism for future. The financial results of farmed fish processor AS PRFoods for the last quarter of the financial year have been strongly affected by the states of emergency declared due to the Covid-19 pandemic in all countries where the Group companies operate (Estonia, Finland, Great Britain and Sweden).

Sales revenue for the quarter decreased by 29.7% compared to the same period last year, amounting to 15.1 million euros (Q4 18/19: 21.5 million euros). In the year as a whole, the sales decline was 8.7% (12m 19/20: 78.3 million euros; 12m 18/19: 85.7 million euros) and the EBITDA for the financial year was 1.6 million euros (12m 18/19: 1.7 million euros).

A statement said:

“Considering the situation in the market and comparing the results of our competitors, we can be satisfied with the year. Based on the results of the first half of the financial year, we expected a much stronger result. Given that the impact of the coronavirus on global demand and fish prices rising from China already in January, was negative, we were able to respond satisfactorily during the second half of the financial year, but it was extremely difficult to achieve a positive result with the entire market in descent.

“HoReCa’s restrictions and the drastic decline in air transport affected the company’s turnover since mid-March, and unfortunately the recovery of the hotel, restaurant and other catering segments has been difficult in PRFoods’ main markets in Finland and the United Kingdom. Due to the decline in salmon and trout prices, finished products have also become cheaper, especially in the Finnish market, affecting profitability.

PRFoods withstood the Covid-19 pandemic with a strengthened balance sheet, having refinanced short-term loans with five-year bonds at the beginning of the year, and also, we have improved cash flows by keeping the level of raw material inventory at an optimal level.”