Information on preliminary financial results for H1 2024

The Management Board of Przedsiębiorstwo Przemysłu Spożywczego PEPEES S.A. (the Company, the Issuer) announces that it has decided to publish the preliminary financial results for the aforementioned period.

Preliminary financial results of the Issuer's Capital Group for H1 2024 (data for H1 2023 is presented in brackets):
- sales revenue: PLN 113,809 thousand (PLN 121,523 thousand)
- operating profit (loss): loss PLN 6,774 thousand, (profit PLN 13,620 thousand)
- net profit (loss): loss PLN 11,035 thousand, (profit PLN 6,624 thousand)

Preliminary financial results of Przedsiębiorstwo Przemysłu Spożywczego PEPEES S.A. for H1 2024 (data for H1 2023 is presented in brackets):
- sales revenue: PLN 86,307 thousand (PLN 89,528 thousand)
- profit (loss)from operating activities: loss PLN 5,726 thousand, (profit PLN 10,704 thousand)
- net profit (loss): loss PLN 7,988 thousand (profit PLN 5,825 thousand).

In the opinion of the Issuer's Management Board, the loss sustained in H1 2024 was at most affected by the lower market price of the main product, to be exact the potato starch, as compared to 2023. The average selling price of starch was approximately PLN 900/t lower in H1 2024 than in the comparable period last year.
In the opinion of the Issuer's Management Board, the forecast for H2 2024 and beyond is more optimistic, as a gradual upward trend in the selling price can be observed in the starch market from July 2024 onwards (1.7% increase in July compared to June, 3.3% increase in August compared to July). The Issuer's Management Board expects that this favourable trend for the Group will continue, allowing higher sales revenues to be generated in the coming months. Simultaneously, the Group plans on sourcing higher volumes of raw material for processing, which should contribute to lower unit production costs. Additionally, a new line for the production of starch modifiers is scheduled to be launched at the beginning of 2025, which will enable the Issuer to open up to new (both food and pharmaceutical) markets. Product diversification will enable the Group to compete against foreign companies and to attract new customers.

The Issuer would like to remind you that the audited final financial results for H1 2024 will be reported in the consolidated semi-annual report to be published on 20 September 2024.

Date Full name Position/Function Signature
2024/09/16 Wojciech Faszczewski President of the Management Board
2024/09/16 Tomasz Rogala Member of the Management Board