PRFoods profit slim, salmon looms large

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Tallinn-, Estonia based PRFoods which this summer acquired two renown U.K. salmon brands, has reported that a fall in the price of salmon —  one of its raw materials — has helped it to 71 percent higher sales in third-quarter and €1.4 million in EBIT.

The €0.8-million fall in EBIT over third-quarter 2016 came despite third-quarter gross profit rising year-on-year by “397.6 percent” to €2.5 million on €18 million in sales.

“Main reasons for increase of the operational profitability is attributed to the decrease of raw material prices, particularly salmon, which represents now higher proportion of our business,” company managing director, Indrek Kasela, said in a statement. Although SalmonBusiness had a bevy of questions to put to him about his salmon stores, we failed to reach him on Monday.

After the acquisition of JRJ of Scotland — a Royal Warrant Holder of the British Royal Family(!) — the Nasdaq-listed PRFoods now wields a quality salmon producer and processor in the UK market. As of the weekend, it reported it had an unspecified “biological” asset reserve of 10,500 tonnes, but operations in Estonia, Finland and Scotland as well as Norwegian fish purchases only add speculation about the location of those assets.

PRFoods appears to have first-class harbor facility in Estonia from where it can receive and slaughter salmon and trout. It may be small, but it is vertically integrated with production, processing and retail sales in 30 countries.