Preliminary financial results for the third quarter of 2016

The Board of Directors of Przedsiębiorstwo Przemysłu Spożywczego “PEPEES” S.A. (“the Company”, “the Issuer”) hereby informs that, in connection with the termination, on 26 October 2016, of the aggregation of financial data carried out to prepare the consolidated financial statements of the Company and of the Issuer’s Group for the third quarter of 2016, the decision was made to publish preliminary financial results for the aforementioned period.

Year-to-date (YTD) results for three quarters of 2016
Preliminary YTD financial results of the Issuer’s Group for the first three quarters of 2016 (the data for the corresponding period of 2015 are presented in brackets)
- sales revenue: PLN 129,922 thousand (PLN 106,253 thousand)
- operating profit: PLN 13,540 thousand (PLN 5,340 thousand)
- net profit: PLN 9,670 thousand (PLN 2,653 thousand)
Preliminary YTD financial results of Przedsiębiorstwo Przemysłu Spożywczego PEPEES S.A. for the first three quarters of 2016:
- sales revenue: PLN 99,983 thousand (PLN 78,729 thousand)
- operating profit: PLN 11,683 thousand (PLN 4,776 thousand)
- net profit: PLN 9,281 thousand (PLN 3,723 thousand)

Results for the third quarter of 2016
Preliminary financial results of the Issuer’s Group for the third quarter of 2016 (the data for the corresponding period of 2015 are presented in brackets)
- sales revenue: PLN 43,427 thousand (PLN 36,426 thousand)
- operating profit: PLN 6,328 thousand (PLN 1,769 thousand)
- net profit: PLN 4,432 thousand (PLN 868 thousand)
Preliminary financial results of Przedsiębiorstwo Przemysłu Spożywczego PEPEES S.A. for the third quarter of 2016:
- sales revenue: PLN 34,711 thousand (PLN 26,460 thousand)
- operating profit: PLN 5,881 thousand (PLN 1,103 thousand)
- net profit: PLN 4,533 thousand (PLN 821 thousand)

The Company’s Board of Directors hereby explains that the significant increase in profit recorded in the third quarter of 2016 occurred due to, among other things, higher sales, including especially exports, and higher production as compared to the corresponding period in the previous year. In addition, in the third quarter of 2016, the parent company sold a part of PMEF energy efficiency certificates (the so-called ‘white certificates’) granted to it in 2016, earning the total income of PLN 958 thousand, which will be recognised in the statement of comprehensive income in ‘other operating income’ and these transactions will increase the result at the operating level by the same amount.
At the same time, the Issuer would like to note that the final financial results for the third quarter of 2016 will be communicated in the extended consolidated quarterly report to be published on 14 November 2016.

Signatures of the Company’s representatives

President of the Board of Directors Wojciech Faszczewski 2016-10-26