ATRIA GROUP PLC'S INTERIM REPORT, 1 JANUARY ? 31 MARCH 2005
Atria Group plc STOCK EXCHANGE RELEASE 28 April 2005 10.00 a.m.
ATRIA GROUP PLC'S INTERIM REPORT, 1 JANUARY 31 MARCH 2005
The Atria Group's operating profit for the review period was EUR 6.3 million
(EUR 5.8 million). The Group's profit before taxes was EUR 5.8 million (EUR 4.6
million). Turnover amounted to EUR 221.7 million (EUR 185.6 million), earnings
per share to EUR 0.20 (EUR 0.15) and equity per share to EUR 12.71 (EUR 10.60).
CONSOLIDATED BALANCE SHEET
Assets
EUR million 31.3.05 31.3.04 31.12.04
Fixed assets
Intangible assets 21.0 13.8 13.8
Goodwill
on consolidation 34.5 34.5 34.6
Tangible assets 276.4 259.0 267.4
Calculatory tax receivables on benefit-based pension
responsibilities 0.1 2.5 0.1
Loan receivables and
other receivables 4.5 0.6 4.2
Investments 7.3 7.2 6.3
Total 343.8 317.6 326.4
Current assets
Inventories 54.4 48.0 48.0
Accounts receivable and
other receivables 127.2 86.2 131.6
Cash in hand
and at bank 10.7 9.1 12.6
Total 192.3 143.3 192.2
Assets, total 536.1 460.9 518.6
Liabilities
EUR million 31.3.05 31.3.04 31.12.04
Equity belonging to parent company's
shareholders 248.7 222.1 244.3
Minority interests 19.5 1.5 19.6
Equity, total 268.2 223.6 263.9
Long-term borrowed capital
Interest-bearing debts 84.5 85.3 83.2
Calculatory tax debts 18.5 15.4 21.4
Pension liabilities 0.4 8.7 0.4
Total 103.4 109.4 105.0
Short-term borrowed capital
Interest-bearing debts 62.3 41.8 32.8
Accounts payable and
other debts 102.2 86.1 116.9
Total 164.5 127.9 149.7
Borrowed capital,
total 267.9 237.3 254.7
Liabilities, total 536.1 460.9 518.6
CONSOLIDATED PROFIT AND LOSS ACCOUNT
EUR million 1-3/05 % 1-3/04 % 1-12/04 %
Turnover 221.7 185.6 833.7
Expenses. excl. the accrual of
benefit-based pensions -207.4 -172.3 -764.6
Accrual of benefit-
based pensions -0.1 8.1
Depreciations -8.0 -7.4 -27.9
Operating profit 6.3 2.8 5.8 3.1 49.3 5.9
Share of associated
company earnings 0.3 0.1 0.5
Financial income and
expenses -0.8 -1.3 -5.2
Profit before taxes 5.8 2.6 4.6 2.5 44.6 5.3
Taxes -1.6 -1.4 -8.5
Calculatory taxes on benefit-based
pensions' accrual -2.4
Minority interest -0.3
Profit for the financial
year 4.2 1.9 3.2 1.7 33.4 4.0
Undiluted
earnings/share, 0.20 0.15 1.58
Earnings/share adjusted
by dilution effect, 0.20 0.15 1.58
CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY
mill. EUR
Equity belonging to the owners of parent company
Mino Share
rity's holders'
share equity
in total
Share Share Trans- Profits Total
equity premium lation
fund diff.
funds
Shareholders'
equity 1 Jan. 2004 35.8 104.5 79.2 219.5 1.6 221.1
Changes in shareholder's
equity 1 Jan - 31 Dec. 2004
Translation differences 0.5 0.5 0.5
Increase in
minority interest 17.6 17.6
Profit for the
financial year 33.4 33.4 0.3 33.7
Distribution
of dividends -9.0 -9.0 -9.0
Shareholders'
equity 31 Jan. 2004 35.8 104.5 0.5 103.6 244.4 19.5 263.9
Shareholders'
equity 1 Jan. 2005 35.8 104.5 0.5 103.6 244.4 19.5 263.9
Changes in shareholder's
equity 1 Jan - 31 Mar, 2005
Translation differences 0.1 0.1 0.1
Profit for the
financial year 4.2 4.2 4.2
Distribution
of dividends
Shareholders'
equity 31 Mar, 2005 35.8 104.5 0.6 107.8 248.7 19.5 268.2
CONSOLIDATED CASH FLOW CALCULATION
EUR million 1-3/05 1-3/04 1-12/04
Cash flow
from operations -2.1 10.8 72.1
Financial items
and taxes -1.3 0.2 -13.2
Cash flow
from operations -3.4 11.0 58.9
Investments
Investments in tangible
and intangible assets -23.0 -8.1 -33.9
Investments -2.5 0.1 0.5
Cash flow
from investments -25.5 -8.0 -33.4
Loans drawn down 32.9 16.3 12.8
Loans repaid -6.0 -20.1 -28.5
Dividends paid -9.0
Cash flow
from financing 26.9 -3.8 -24.7
Change in liquid funds -2.0 -0.8 0.8
INDICATORS
EUR million 1-3/05 1-3/04 1-12/04
Undiluted
earnings/share, 0.20 0.15 1.58
Earnings/share adjusted
by dilution effect, 0.20 0.15 1.58
Equity/share, 12.71 10.60 12.51
Interest-bearing debts 146.9 127.1 116.0
Equity ratio, % 50.1 48.6 50.9
Gross investments 23.0 7.8 37.3
Gross investments
/turnover, % 10.4 4.2 4.5
Personnel on average 4 090 3 435 3 638
SEGMENT-SPECIFIC DATA
GEOGRAPHICAL
EUR million 1-3/05 % 1-3/04 % 1-12/04 %
Turnover
Finland 144.7 65.3 119.4 64.3 525.8 63.1
Sweden 74.0 33.4 66.8 36.0 310.2 37.2
Others and eliminations 3.0 1.4 -0.6 -0.3 -2.3 -0.3
Total 221.7 100.0 185.6 100.0 833.7 100.0
Operating profit
Finland 5.8 92.1 4.3 74.1 37.7 76.5
Sweden 0.7 11.1 1.6 27.6 12.1 24.5
Others and eliminations -0.2 -3.2 -0.1 -1.7 -0.5 -1.0
Total 6.3 100.0 5.8 100.0 49.3 100.0
Investments
Finland 22.0 95.7 5.4 69.2 28.8 77.2
Sweden 0.7 3.0 1.5 19.2 6.9 18.5
Others 0.3 1.3 0.9 11.5 1.6 4.3
Total 23.0 100.0 7.8 100.0 37.3 100.0
EUR million 31.3.05 % 31.3.04 % 31.12.04 %
Funds
Finland 452.8 84.5 384.8 83.5 433.7 83.6
Sweden 128.9 24.0 129.5 28.1 137.7 26.6
Others and eliminations -45.6 -8.5 -53.4 -11.6 -52.8 -10.2
Total 536.1 100.0 460.9 100.0 518.6 100.0
Debts
Finland 194.7 72.7 168.7 71.1 180.2 70.7
Sweden 65.2 24.3 70.6 29.8 73.7 28.9
Others and eliminations 8.0 3.0 -2.0 -0.8 0.8 0.3
Total 267.9 100.0 237.3 100.0 254.7 100.0
BUSINESS-RELATED
EUR million 1-3/05 % 1-3/04 % 1-12/04 %
Turnover
Meat Industries 173.7 78.3 163.7 88.2 710.8 85.3
Wholesale Trade 55.0 24.8 25.1 13.5 136.3 16.3
Eliminations -7.0 -3.2 -3.2 -1.7 -13.4 -1.6
Total 221.7 100.0 185.6 100.0 833.7 100.0
LIABILITIES
EUR million 31.3.05 31.3.04 31.12.04
Debts for which collateral has been provided
in the form of mortgages and other securities
Loans from financial
institutions 76.5 73.5 66.2
Pension fund loans 6.1 5.5 6.0
Total 82.6 79.0 72.2
Mortgages and other securities given
as comprehensive security
Real-estate mortgages 77.5 75.4 74.3
Corporate mortgages 43.7 38.0 43.0
Other collateral 40.6 37.6 41.3
Total 161.8 151.0 158.6
Contingent liabilities
not included in the balance sheet
Unused limits 85.5 75.2 79.4
Guarantees 3.1 1.3 1.9
ATRIA ACHIEVES POWERFUL INCREASE IN TURNOVER
Atria Group plc, the largest company in the meat industry in Finland, is
demonstrating a powerful increase in its turnover and it will also retain its
position as industry leader this year. In addition to having the support of
organic growth, turnover has increased by the inclusion of the Estonian AS
Valga Lihatööstus, acquired in January, and the procurement company A-Farmers
Ltd in the consolidated turnover.
The turnover produced during the first quarter amounted to EUR 221.7 million
(EUR 185.6 million), which represents an increase of 19.5%. The Group's
operating profit amounted to EUR 6.3 million (EUR 5.8 million), an increase of
8.6%. The profit before taxes was EUR 5.8 million (EUR 4.6 million), an
increase of 26.1%.
The beginning of the year in Finland saw a reduction in the production of both
pig and bovine. The reduction was less at Atria than in the country as a whole,
and the amount of meat processed, poultry included, was down by 1.1%. The
producer prices for both pig and bovine were significantly higher than at the
same time last year, but the market situation for meat, too, has improved
throughout Europe. Within the Atria Group, this meant a decrease in the
profitability of meat product production in all of the units. However, Atrias
overall market situation, with meat included, developed in such a positive
manner that it enabled an improvement in the Group's earnings.
Atria Group the domestic market leader
The retail trade in Finland grew by 8.0% and the company also retained its
position as the market leader on the domestic retail market. Atria succeeded
especially in meat industries, meat products and in cold cuts. Brazilian
chicken, imported by competitors and sold fresh to consumers, placed stiff
price pressure on Finnish Atria's chicken. It was possible however to keep
profitability at the level of the previous year by applying certain improvement
and marketing measures.
Liha ja Säilyke Oy, operating in Forssa, was able to retain its position on the
convenience food market, but the rise in the costs of raw materials impaired
its earnings. Liha ja Säilyke Oy's turnover stayed at the level of the previous
year. In February a new logistics centre costing EUR 6 million was opened in
Forssa. The objective of Liha ja Säilyke Oy's logistics centre's customer
service and dispatching activity is to offer flexible service meeting the
changing needs of customers.
Lithells Group a strong Number Two in Sweden
The turnover produced by the Lithells Group operating in Sweden amounted to EUR
74.0 million during the first quarter (EUR 66.8 million), which represents an
increase of 10.4%. The operating profit amounted to EUR 0.7 million (EUR 1.6
million). Atria Lithells AB, the company producing the Lithells Group's meat
products, suffered from the marked rise in raw materials costs when the
corresponding raising of retail prices failed. However, cost efficiency and
productivity showed a significant improvement during the period under review.
Atria Concept AB, the company engaged in fast food business with its Sibylla
chain of outlets and Svensk Snabbmat för Storkök AB, a local wholesaler, were
able to carry on positive business.
Atria expands within the Baltic Sea region
UAB Vilniaus Mesa, operating in Lithuania, and the Estonian company AS Valga
Lihatööstus, acquired in January, are undergoing a process of adaptation of
functions in compliance with the requirements of the Atria Group. The
organisation of Vilniaus Mesa and its marketing policy have been developed
powerfully since the beginning of the year to make them correspond to Atria's
operating principles. The business results for both companies do not as yet
have a significant impact on the consolidated result. The long-term objective
of Atria is to further strengthen the Group's operations in the Baltic
countries.
Moreover, Atria aims to launch production operations in the western parts of
Russia. The results of thorough reports will be made public probably before
midsummer. It is believed that Russia will provide good long-term possibilities
for developing the business of the entire Group.
Investments
Atria has several on-going investments at the Nurmo unit. An ultra-modern pig
slaughtering line costing more than EUR 20 million has already begun
operations, but its final completion is scheduled for the first half of the
coming year. The company has commenced dismissal negotiations in connection
with the closing down of pig slaughtering operations in Kuopio. Extension work
is also in progress on some of the product lines at the Nurmo meat products
plant. All in all, there are nearly 130 000 sq. metres of modern production
facilities in use at Atria Group plc's Nurmo unit. The Nurmo unit employs about
1 600 people. The Group has a total of 4 100 employees.
Future prospects
Atria believes that its business over the whole year will develop in the same
way as during the early months of the year. The most powerful development in
the sales and business result will take place during the second and third
quarters because from the point of view of the years result the summer's sales
outcome is of crucial importance to the entire Group. In Sweden, the earnings
of Lithells AB are expected to fall somewhat during the year. However, it is
difficult at this stage to make the result prognosis for the Group covering the
entire year when considering the market changes taking place in Europe and
affecting the company's market situation. At the moment, especially in the case
of pork, the market situation is weakening in Europe, but it is still premature
to estimate how long-lasting these market changes will be. However, no actual
price collapse is envisaged.
IAS/IFRS - Comparability of the figures for 2004 and 2005
The Atria Group reports the figures actualised for 2005 and their comparison
data in accordance with the IAS/IFRS standards. The differences between the
IFRS comparison data for the year 2004 and the data as per the Finnish
reporting standard were published on 19.4.2005 and they may be viewed at our
website (www.atria.fi).
Disability pension required a reservation to be made on 1.1.2004. Due to
changes in our Group structure and in the Finnish TEL pension legislation, the
business result for the year 2004 includes a reservation dated 1.1.2004 and
entered as income as follows: Q1/2004, EUR -0.1 million; Q2/2004, EUR 2.3
million; Q3/2004, EUR 0.3 million; Q4/2004, EUR 3.2 million. Following these
entries as income, the said reservation amounts to just EUR 0.3 million. In the
comparison with figures for the years 2004 and 2005, one should note the random
nature of the discharge of this reservation. The entry of this reservation as
income is presented in our interim reviews on lines of its own. Apart from
this, the figures are comparable and contain no random factors.
ATRIA GROUP PLC
Seppo Paatelainen
CEO
DISTRIBUTION
Helsinki Exchanges
Principal media
www.atria.fi
Interim reports are mailed upon request and are available on our Internet site,
www.atria.fi.
