PRFoods, which is engaged in fish processing in Finland and Estonia as well as fish farming in Sweden and Finland, has reported a 3.2% sales increase in the first quarter of the year.
Vertically integrated, the group processes trout farmed in the lakes of Sweden and in the archipelago in Turku area in Finland, as well as salmon imported from Norway, in production facilities at Heimon Kala OY in Renko, Finland and Vettel OÜ on the island Saaremaa, Estonia.
In Q1 the unaudited consolidated sales revenue of PRFoods increased by 3.2% y-o-y, to reach €10.6 million, thanks to the fact that the average price of rainbow trout was 67% higher in the 1st quarter of 2017 compared to same period previous year, while the average price of salmon was accordingly 18% higher compared to previous year.
The largest increase compared to previous year in revenue came from the smoked products group, which increased by €0.4 million (11.6%). The revenue from the raw fish and fillets product group decreased by €0.3 million (5.9%). The revenue from the other fish products group increased by €0.2 million, (13.6%).
Based on client segments, the first 3 months’ revenue of 2017 from the retail chain sector decreased by €0.9 million (16.4%), and increased in both the food service and wholesale sector, totalling €1.2 million. The increase in the service sector was 26.7% and in the wholesale sector 20.9%.
The decrease in the retail chain sector over the past 1.5 years can mostly be attributed to the loss of several Private Label products from PRF’s product portfolio. Regarding the extreme price volatility of raw materials this year, it is unprofitable for the company to be actively involved in manufacturing Private Label goods for retail chains because of their lower margins. High prices of salmon and rainbow trout have also caused retail chains to reduce the number of campaigns.
Finnish revenue increased in first 3 months of 2017 by €0.7 million (8.6%). The share of Finnish market formed 85.2% of the total revenue, having increased by 4.2 percentage points compared to the same period last year. Meanwhile revenues in in Estonia decreased by €0.4 million (30.4%). The proportion of the revenue from the Estonian market decreased by -4.4 percentage points in comparison with the same period last year.
Revenue in other countries increased by €0.04 million in 1st quarter of 2017, an increase of 0.2%.
(Image courtesy of PR Foods).