PRF: Consolidated sales turnover of Premia Foods AS, IV quarter and 12 months of 2010

17.01.2011

The consolidated unaudited sales turnover of Premia Foods AS in 2010 was 77.3 million euro (1209.6 million Estonian kroons), having grown by 8.6 million euro (134.7 million Estonian kroons) i.e. 12.5% per year. The company’s sales turnover in the fourth quarter was 17.8 million euro (278.8 million Estonian kroons), having grown by 2.0 million euro (31.2 million Estonian kroons) i.e. 12.6% per year.

The results of the fourth quarter and 12 months indicate that the areas of activities are well balanced.

Fish and fish products still form the greatest part i.e. 38.5% of the turn-over; therewith that area of activity formed 52.3% of the company’s turnover in the fourth quarter. The 7.7% increase in the sales turnover in the fourth quarter and 1.6% increase in the sales turnover throughout the year compared to the same periods of 2009, is considered very positive by the management of the company because 2010 was significantly more complicated for production and sale of fish products in the Baltic states and foremost in Finland, due to extraordinary circumstances (fast increase of fresh fish prices and fire accident in the Uusikaupunki production unit).

Ice cream has had the greatest growth of all the areas of activities and forms a bit more than one third i.e. 34.2% of the annual sales turnover, therewith the sales turnover of ice cream in the fourth quarter grew by 88.4% i.e. by 1.6 million euro (24.4 million Estonian kroons) compared to the same period of the previous year. The reason for such a good result is the sales results of Khladokombinat No 1, located in St Petersburg, consolidated since May 2010, and active work with both popular new products and sales campaigns in the Baltics.

Frozen products, the third main area of activity, form a bit more than a quarter of the whole annual sales turnover i.e. 25.7% and have reached the comparable level in volume with the one of 2009. The sales volumes of frozen products have stabilized and diversely from 2009, the sales volume of frozen products in 2010 has grown in the fourth quarter compared to the third quarter. The reason is active work with the sales in the Baltics and the positive seasonal effect of Christmas holidays, which also increased the popularity of frozen poultry meat products, especially in Estonia.

Finnish market formed the biggest part i.e. 45% of the sales turnover of Premia Foods in the fourth quarter, by providing additional turnover in amount of 0.6 million euro (9.4 million Estonian kroons) compared to the same period of the previous year. The Finnish market gave a turnover of 26.2 million euro (410.7 Estonian kroons), which exceed the 12 months’ turnover of 2009 by 1.4 million euro (21.2 million Estonian kroons). The management considers this a very good result, because the increase in turnover was mostly caused by launching new products with high added value and actively taking part in Christmas campaigns, and also successful work in HoReCa sector. The trademark “Heimon Gourmet” owned by Premia Foods continues as one of the leaders in the chilled fish market in Finland and the company continues to hold the 25% market share in the retail market of Finland’s chilled packaged fish products.

In the Estonian market, the result of the fourth quarter was approximately the same as the result of the fourth quarter in 2009. As an annual conclusion, Estonia is continuously the second most important market of Premia Foods, whereas the turnover of 21.5 million euro (337.6 million Estonian kroons) and the positive results of the last two quarter of 2010 give reasons for satisfaction. The company continues as the leader of the ice cream market in Estonia, having a 40% market share by revenue. The company is also continuously among the leaders in the frozen products market.

There are also positive signals in Latvia because the turnover continued to increase both in the third and fourth quarter compared to the same periods of 2009. The annual turnover of 2010 in amount of 10.9 million euro (169.9 million Estonian kroons) sets Latvia to the third position among the markets of Premia Foods. Latvian economy was in a very difficult situation in 2010 and the efforts made in Latvian market for retaining and improving its position have been successful. Premia Foods continues on the second position in Latvian ice-cream market having a 14% market share by revenue and also being among the leaders in the frozen products market.

In every quarter of 2010 the Lithuanian market exceeded the 2009 turnover results. The annual result of 6.2% increase in turnover, i.e. 0.5 million euro (7.8 million Estonian kroons) compared to the previous period is the result of persistent work. Lithuanian market is the most complex market of the Baltic states but 2010 showed that the previous choices concerning personnel, product assortment and product development are justified. Premia Foods gained the leader position in Lithuanian ice cream market in the summer of 2010 with 21% value share.

The product portfolio of Khladokombinat No 1 in St.Petrsburg consists of ice cream of almost 100% and the goal for 2010 was optimizing the portfolio by stopping the ineffective products and concentrating on the development of the existing brands together with achieving sufficient distribution for those. Russian business results are consolidated into the turnover of Premia Foods since May 2010 and the turnover of 8.2 million euro (144.0 million kroons) meaning 22%-25% of market share in the region and strong 2nd position on the market, is matching the expectations for the year of the management of Premia Foods. Important seasonal effects caused by the changes in weather have material impact on the Russian ice cream market alike the Lithuanian market – the severe decrease in weather temperature after a very warm summer decreased the necessary impulsivity needed for buying ice cream. One of the circumstances affecting the market is also the fact that although small ice creams are popular in St Petersburg’s market, the family ice creams which form a significant part of the ice cream sales in winter in Estonia are significantly less known in St Petersburg’s market due to cultural and historical reasons. Thus seasonal effects to the sales of ice cream in St Petersburg area both in high or low seasons are bigger than in nearer countries (Estonia, Finland), which must be considered as a cultural difference.
 

Additional information:
Kuldar Leis
Premia Foods
CEO
T: 6 033 800
kuldar.leis[A]premia.ee
www.premiafoods.eu