ATRIA LITHELLS AB TO RAISE ITS PRODUCT PRICES
ATRIA GROUP PLC STOCK EXCHANGE RELEASE 9 December 2004 10:00 am
ATRIA'S SWEDISH SUBSIDIARY ATRIA LITHELLS AB TO RAISE ITS PRODUCT PRICES AS A RESULT OF THE SHARP INCREASE IN THE PRICE OF RAW MATERIALS Atria Lithells AB is a subsidiary of Lithells AB which is owned by Atria Group plc. The company, which produces processed meat products and convenience foods, is to raise its product prices to compensate for the increase in the price of raw materials. In particular, the prices of both pork selections used in sausage production and beef selections used in minced meat production have increased. The results for the whole of Lithells AB and its subsidiary Atria Lithells AB have been good during the first three quarters of this year. During the last quarter the sharp increase in the price of raw materials has dramatically raised production expenses. To compensate for the negative effect of these price increases, Atria Lithells AB, in accordance with supplier contracts, already informed its customers in September about the need to increase prices. The new prices will come into effect in December 2004 and in January 2005. The following possible price increases will be announced to customers according to future changes in the price of raw materials. Due to the level of price competition in the retail business, customers of Atria Lithells AB are strongly against the raised prices. To adjust its operations to any possible decrease in sales volume following the increase in prices, Atria Lithells AB, in accordance with the Swedish Act on Co-determination, is to start MBL negotiations on 21 December 2004. The number of personnel involved in the negotiations cannot yet be estimated. In general the results of the Atria Group have been positive during the last quarter. The final result of the Atria Group this year will be significantly better than in the previous year. ATRIA GROUP PLC Seppo Paatelainen President DISTRIBUTION www.atria.fi Helsinki Exchanges Principal media