Information about preliminary financial results for 2017

The Board of Directors of Przedsiębiorstwo Przemysłu Spożywczego PEPEES S.A. (‘the Company’, ‘the Issuer’) hereby informs that, in the process of preparing financial statements for 2017, following the completion on 16 March 2018 of the verification of the structure of held assets, including interests in subsidiaries, a decision was made to recognise non-monetary write-downs related to shares in the subsidiary CHP Energia Sp. z o.o, which will be accounted for:
- in the financial statements of the Issuer’s Group as a write-down of goodwill determined upon the acquisition of this company due to impairment amounting to PLN 4,346 thousand;
- in the Issuer’s separate financial statements as a write-down of shares held, receivables and advances in this subsidiary in the total amount of PLN 3,464 thousand, due to negative equity of the company.
The write-downs are accounting transactions and will not affect the liquidity and current operations of the Issuer’s Group.
At the same time, the Issuer informs that, irrespective of the recognition of the aforementioned write-downs, the aggregation of financial data carried out to prepare the financial statements and reports of the Company and of the Issuer’s Group for 2017 was completed on 16 March 2018, and hence the decision was made to publish preliminary financial results for the aforementioned period.
Preliminary results for 2017 are presented below (the data for 2016 are shown in brackets).
Preliminary financial results of the Issuer’s Group:
- sales revenue: PLN 224,273 thousand (PLN 185,675 thousand)
- profit on operating activities: PLN 21,853 thousand (PLN 23,584 thousand)
- net profit attributable to equity holders of the parent: PLN 13,364 thousand (PLN 17,600 thousand)
Preliminary financial results of Przedsiębiorstwo Przemysłu Spożywczego PEPEES S.A.:
- sales revenue: PLN 162,454 thousand (PLN 143,767 thousand)
- profit on operating activities: PLN 19,568 thousand (PLN 19,833 thousand)
- net profit: PLN 12,319 thousand (PLN 15,918 thousand)

The Company’s Board of Directors explains that, despite much higher sales revenue, net profit of both the Group and PEPEES is lower than in the previous year due to the aforementioned write-downs, higher personnel costs and higher costs of electricity used in the production process.

At the same time, the Issuer would like to remind shareholders that the final financial results for 2017 will be presented in annual (separate and consolidated) financial statements to be published on 29 March 2018.

SIGNATURES OF THE COMPANY’S REPRESENTATIVES
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