Estonia-based food group Premia Foods has reported an increase in sales in the first nine months of 2014 with turnover in each of its divisions - including two it has agreed to sell - rising in the third quarter.

Premia booked a 7.4% rise in revenue to EUR78.3m (US$99.1m) for the nine months to the end of September.

Earlier this week, the company announced plans to sell its ice cream and frozen food divisions to Latvian dairy group Food Union, leaving it with operations in the fish products sector.

Premia said sales from the ice cream and frozen food businesses rose in the third quarter of the year. Ice cream, Premia's largest division by turnover, increased 7.7%, mitigating lower sales in the first half of the year. Premia's ice cream sales in the first nine months of 2014 were down 3.5% due to the weakening of the rouble.

Sales of frozen foods were up 8.1% in the first nine months of the year, after three successive quarters of growth.

Premia said sales from its fish and fish products business rose 17.4% during the period thanks to retail sales in Finland.

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PRF: The unaudited consolidated turnover of AS Premia Foods, 3rd quarter and 9 months, 2014

 

The unaudited consolidated turnover of Premia Foods in the 3rd quarter of 2014 increased, if compared to the 3rd quarter of 2013, by 7.3%, i.e. 2.0 million euro, reaching 28.8 million euro. The unaudited consolidated turnover of the 9 months of 2014 reached 78.3 million euro, having increased by 7.4%, i.e. 5.4 million euro, within a year.

On 06.10.2014, AS Premia Foods entered into a sales transaction for the sale of the Baltic and Russian ice cream and frozen goods operations. As a result thereof, the turnover of AS Saaremere Kala, owned by AS Premia Foods, is indicated below under continuing operations. 

Turnover by business segment (MEUR) Q1 2014 Q2 2013 Q2 2014 Q2 2013 Q3 2014 Q3 2013 9 months 2014 9 months 2013 9 months 2014/
9 months 2013
Ice cream 3.6 3.6 10.3 12.1 11.2 10.4 25.2 26.1 -3.5%
Frozen goods 6.1 5.9 6.7 6.0 6.7 6.2 19.5 18.1 +8.1%
Fish and
fish products
10.1 8.2 11.2 8.9 9.9 9.4 31.2 26.5 +17.4%
Other 0.7 0.6 0.9 0.8 0.9 0.9 2.5 2.2 +11.4%
Total 20.5 18.3 29.1 27.8 28.8 26.9 78.3 72.9 +7.4%
incl. continuing operations 10.1 8.2 11.2 9.0 10.0 9.5 31.3 26.7 +17.2%


The turnover of the ice cream business segment increased in the 3rd quarter of 2014 by 0.9 million euro, i.e. 8.4%. In the summary of 9 months, the turnover of the business segment, if calculated in euro, decreased by 0.9 million euro, i.e. 3.5%, if compared to the same period of the previous year, however, if the weakening of the Russian ruble against euro is eliminated, the turnover of the business segment increased by 0.6% during the given period. The turnover of ice cream increased in Estonia, Finland and, if calculated in Russian rubles, in the Russian market. The turnover of ice cream decreased the most in Lithuania during the reporting period; however, a major part of the decrease in turnover in the Lithuanian market came from the decreased turnover of private label products. In summary of the 9 months, the ice cream business segment contributed 32.1% to the total turnover of Premia Foods.     

The turnover of the frozen goods business segment increased on an annual basis by 8.6%, i.e. 0.5 million euro, during the 3rd quarter of 2014. In summary of the 9 months of 2014, the increase of the business segment was 8.1%, i.e. 1.5 million euro, if compared to the previous year. The greatest monetary contribution into the increased turnover came from Latvia where the turnover increased by 1.0 million euro. The proportion of the turnover of the frozen goods in the total turnover of the 9 months of 2014 was 25.0%.   

The turnover of the fish and fish products business segment increased during the 3rdquarter of 2014 by 5.2%, i.e. 0.5 million euro, if compared to the 3rd quarter of 2013. In summary of the 9 months, the turnover of the fish business segment increased by 17.4%, i.e. 4.6 million euro, in annual comparison. The increase came mostly from the Finnish retail market and the cold and hot smoked product groups. The fish and fish products business segment contributed 39.8% to the total turnover of Premia Foods during the 9 months of 2014. 

Turnover by target market (MEUR) Q1 2014 Q1 2013 Q2 2014 Q2 2013 Q3 2014 Q3 2013 9 months 2014 9  months 2013 9 months 2014/
9 months 2013
Finland 8.9 6.8 10.1 8.0 8.9 8.3 27.8 23.1 +20.8%
Estonia 5.3 5.3 7.8 7.9 8.5 8.1 21.7 21.3 +1.6%
Latvia 3.4 2.9 4.4 4.3 4.6 4.0 12.3 11.2 +10.4%
Lithuania 1.7 1.8 3.7 4.0 3.9 3.5 9.3 9.3 +0.0%
Russia 1.1 1.4 3.0 3.5 2.8 2.8 7.0 7.7 -9.4%
Other 0.0 0.0 0.1 0.2 0.0 0.1 0.1 0.3 -48.6%
Total   20.5 18.3 29.1 27.8 28.8 26.9 78.3 72.9 +7.4%

In summary of the 9 months of 2014, the turnover increased in the Finnish, Latvian and Estonian markets. In Lithuania, the level of the previous year was maintained. The main influence of the decrease in turnover in the Russian market was the weakening of the Russian ruble exchange rate against euro. However, Premia buys the raw materials necessary for the ice cream production in rubles and sells the final product in the Russian market also only in rubles, therefore, the fluctuations of the ruble against euro does not impact the daily work of the company and, if calculated in rubles, the turnover in the Russian market increased on an annual basis by 4.3%. The proportion of the Baltics in the turnover of Premia Foods during the 9 months of 2014 was 55.3%.

Original source: Premia Foods