Atria is raising its EBIT guideline for 2021
Atria Plc Insider information 14th of June 2021, at 5.30 pm
Atria is raising its EBIT guideline for 2021
Atria raises its EBIT guideline for 2021 and estimates the adjusted EBIT to be EUR 41-48 million (EUR 40.5 million).
The reason for the improvement in the EBIT forecast is increased pork exports from Finland to China, favorable sales structure and cost control during the first half of the year. In addition, the negative impact of the operating activities of OOO Pit-Product on the Group's EBIT was shorter than forecast. OOO Pit-Product was sold on April 30, 2021. The earnings trend towards the end of the year is affected by the development in the demand of various sales channels, the profitability of exports and the effects of cost inflation.
The statement describing the development of EBIT and the amount of translation differences accumulated from the sale of OOO Pit-Product are updated in the new guidelines. In other respects, the guidelines have remained unchanged.
Updated guidelines:
In 2021, Atria Group's adjusted EBIT is estimated to be EUR 41-48 million (EUR 40.5 million).
The adjusted EBIT is determined by adjusting the EBIT recognised in the income statement with material items affecting comparability. These may include events that are not part of the company's ordinary business activities, such as reorganisation of operations, capital gains and losses from the sale of operations, impairment, and the costs of discontinuing significant operations. Such an item affecting EBIT, is the translation difference recognition of EUR -45 million arising from the sale of OOO Pit-Product. The translation difference was recognised after the deal was finalised.
Atria operates mainly in the retail and Food Service markets in Finland and Sweden. The strong and rapid changes in the global meat market will have a greater impact on the company's development and reduce predictability.
Consumption of poultry meat is expected to continue to increase, while consumption of red meat is expected to decline slightly. Atria has increased its meat exports, and pork exports to China, for example, are expected to increase further during 2021.
The coronavirus pandemic that began in 2020 and continues in early 2021 has caused strong and rapid changes in the business environment in the food industry. This has hindered the predictability of the company’s development. Immediate effects related to Atria's business have included national restrictions on restaurant operations and public food services, resulting in reduced sales to Food Service customers. During the coronavirus pandemic, the importance of ordinary everyday food has strengthened. The possible weakening of consumer purchasing power will also affect food purchases and may shift the sales structure of Atria's products into an unfavourable direction.
Previously published guidelines were:
In 2021, Atria Group's adjusted EBIT is estimated to be EUR 37–43 million (EUR 40.5 million).
The adjusted EBIT is determined by adjusting the EBIT recognised in the income statement with material items affecting comparability. These may include events that are not part of the company's ordinary business activities, such as reorganisation of operations, capital gains and losses from the sale of operations, impairment, and the costs of discontinuing significant operations. Such an item affecting EBIT, if realised, is the translation difference recognition arising from the sale of OOO Pit-Product. Cumulated translation differences associated with Pit-Product stood at around EUR -45 million on 31 December 2020. Translation differences depend on the development of the Russian rouble exchange rate and will be recognised after the deal has been finalised.
Atria operates mainly in the retail and Food Service markets in Finland and Sweden. The strong and rapid changes in the global meat market will have a greater impact on the company's development and reduce predictability.
Consumption of poultry meat is expected to continue to increase, while consumption of red meat is expected to decline slightly. Atria has increased its meat exports, and pork exports to China, for example, are expected to increase further during 2021.
The coronavirus pandemic that began in 2020 and continues in early 2021 has caused strong and rapid changes in the business environment in the food industry. This has hindered the predictability of the company’s development. Immediate effects related to Atria's business have included national restrictions on restaurant operations and public food services, resulting in reduced sales to Food Service customers. During the coronavirus pandemic, the importance of ordinary everyday food has strengthened. The possible weakening of consumer purchasing power will also affect food purchases and may shift the sales structure of Atria's products into an unfavourable direction.
Atria will publish its half-year report for 2021 on July 20, 2021 at approximately 8:00 AM.
For more information, please contact Juha Gröhn, CEO of Atria Plc, tel. +358 400 684224.
ATRIA OYJ
Juha Gröhn
CEO
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Nasdaq Helsinki Ltd
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www.atria.com