ATRIA OYJ'S FINANCIAL STATEMENTS 1 JANUA

      
      
ATRIA OYJ STOCK EXCHANGE RELEASE 24 FEBRUARY 2003 AT 10.00 A.M.	1(7)


ATRIA OYJ'S FINANCIAL STATEMENTS 1 JANUARY - 31 DECEMBER 2002	 		

Atria Group's turnover increased by 10.9 % amounting to EUR 707.0 
million (EUR 637.4 million). Profit before extraordinary items was
EUR 20.4 million, (EUR 23.9 million ). The Board of Directors proposes
that a dividend of 25 % on the share capital be paid.



CONSOLIDATED INCOME STATEMENT (EUR MILLION)

				1-12/2002	1-12/2001	change %

TURNOVER			707.0		637,4		10.9

OPERATING PROFIT		25.6		28.9		-11.5		
				
PROFIT BEFORE EXTRAORDINARY
ITEMS				20.4		23.9		-14.8

GROUP'S PROFIT BEFORE TAXES	20.4		23.9		-14.8

PROFIT FOR THE FINANCIAL YEAR	14.1		15.9		-11.6


CONSOLIDATED BALANCE SHEET (EUR MILLION)
				12/2002		12/2001		change %

ASSETS

FIXED ASSETS		
Intangible assets		50.1		42.0		19.5
Tangible assets			243.8		209.8		16.2
Financial assets		5.0		5.4		-6.2

CURRENT ASSETS			
Stocks				46.1		34.6		32.9
Debtors				77.5		70.3		10.4
Cash at bank and in hand	16.5		10.1		62.5

TOTAL				439.0		372.2		18.0

LIABILITIES

CAPITAL AND RESERVES
Share capital and other
shareholders' capital		188.6		180.7		4.4

MINORITY INTEREST		1.2		0.5		164.9

CREDITORS
Long-term			123.4		83.3		48.1
Short-term			125.8		107.7		16.8

TOTAL				439.0		372.2		18.0

CONSOLIDATED CASH FLOW 
STATEMENT (EUR million)         1-12/2002	1-12/2001	change %
				
Cash flow from oprerations      50.9            47.1            8.1
Financing items and taxes       -14.9           -12.2           22.1
Cash flow from operating        36.0            34.9            3.2            
           
Cash flow from investing
activities                      -66.1           -23.2           184.9

Net change in loans             43.2            5.1             947.1
Dividends paid                  -6.8            -4.0            70.0
Net cash from financing
activities                      36.4            -9.1            500.0

Cash in liquid funds            6.3             2.6             142.3

				    
CONTINGENT LIABILITIES (EUR MILLION)				

				31.12.2002	31.12.2001	change %

LOANS SECURED BY MORTGAGES OR
OTHER SECURITIES
Loans from financial
institutions			95.0		71.8		32.3		
Pension loans			5.4		8.3		-34.9
Total				100.4		80.1		25.3

MORTGAGES AND OTHER SECURITIES
GIVEN AS GENERAL SECURITIES
Property mortgages given	64.4		62.2		3.5
Company mortgages given		25.6		22.3		14.8
Other securities given		40.6		62.7		-35.2
Total				130.6		147.2		-11.3

MORTGAGES AND OTHER COLLATERAL GIVEN ON
BEHALF OF GROUP COMPANIES

Guarantees                      21.8            -               100.0

CONTINGENT LIABILITIES AND LIABILITIES 
NOT INCLUDED IN THE BALANCE SHEET
Limits not used			82.3		76.9		7.0
Guarantees			1.0		0.9		11.1

Leasing liabilities
Falling due in the next 12 months
				1.0		1.0		-		
Falling due at a later time	1.2		1.1		9.1
Total				2.2		2.1		4.8


The figures are not audited.			

KEY FINANCIAL INDICATORS

				2002	2001	2000	1999	1998			

Turnover (EUR million)		707.0	637.4	615.7	557.7	519.2							
Operating margin (EUR million)	50.9	52.0	38.7	36.0	36.8					
% of turnover			7.2	8.2	6.3	6.5	7.1					
Operating profit (EUR million)	25.6	28.9	18.8	16.7	14.5					
% of turnover			3.6	4.5	3.1	3.0	2.8				
Financial income/expenses
				-5.2	-4.9	-5.3	-4.0	-4.4					
% of turnover			0.7	0.8	0.9	0.7	0.9				
Profit before extraordinary items 
(EUR million)			20.4	23.9	13.5	12.6	10.1					
% of turnover			2.9	3.8	2.2	2.3	1.9					
Profit before appropriations and
taxes (EUR million)		20.4	23.9	13.5	12.6	8.8					
% of turnover			2.9	3.8	2.2	2.3	1.7					
Return of equity (ROE) %	7.7	9.2	4.9	5.3	3.8					
Return of investment (ROI) %
				7.9	10.0	6.8	6.6	5.8	
						
				
Equity ratio %			43.3	48.7	46.7	46.3	52.6					
Gross investments in fixed
assets (EUR million)		66.0	23.2	32.1	56.5	19.2					
% of turnover			9.3	3.6	5.2	10.1	3.7					
Personnel			3,300	3,241	3,419	3,264	3,045					
Research and development expenses
				6.1	5.5	5.8	4.3	4.0				
% of turnover			0.9	0.9	0.9	0.8	0.8					
Volyme of orders**		-	-	-	-	

* Booked in total as expenditure for the financial year
** Not a significant indicator, as orders are generally delivered
on the day following the order				
						

KEY INDICATORS FOR SHARES

				2002	2001	2000	1999	1998			
				12 m	12 m	12 m	12 m	12 m		

Earnings per share (EPS) EUR	0.89	1.00	0.52	0.54	0.39					
Shareholders' equity per share
EUR				11.92	10.42	10.73	10.49	10.09					
Dividend/share EUR*		0.425	0.425	0.25	0.25	0.25					
Dividend/profit %*		47.8	42.4	48.5	46.4	65.2					
Effective dividend yield*	3.2	7.1	5.9	5.1	5.3				
Price/earnings ratio (P/E)	8.67	5.97	8.26	9.11	12.25					
Volume of shares traded/thousands, EUR million	
				121.8	94.9	67.9	78.3	75.0					
Volume of shares traded/thousands: 
			A	1,249	1,226	602	1,529	3,479			     			
	       KI		-	-	-	-	260	
Volume of shares traded % 
			A	18.9	18.5	9.1	23.1	79.1		
	       KI		-	-	-	-	11.7					
Number of shares, millions
                  total		15.8	15.8	15.8	15.8	15.8					
Number of shares, millions 
			A	6.6	6.6	6.6	6.6	4.4				
		KI		-	-	-	-	2.2
		KII		9.2	9.2	9.2	9.2	9.2				
Average number of shares adjusted	
with share issue		15.8	15.8	15.8	15.8	15.8			
Number of shares adjusted
with share issue 31.12.		15.8	15.8	15.8	15.8	15.8						


SHARE PRICE TREND
Lowest of period	A	5.85	3.81	4.02	4.05	4.39				
		KI		-	-	-	-	4.73					
Highest of period	A	8.90	6.19	6.00	5.48	9.08				
		KI		-	-	-	-	9.25					
At the end of period	A	7.70	6.00	4.29	4.95	4.46				
		KI		-	-	-	-	5.30					
Average price of the 
financial period	A	7.35	5.22	4.99	4.70	6.50				
		KI		-	-	-	-	7.48				
	
* the proposal of the Board of Directors



	
WEAKENING OF DOMESTIC OPERATIONS CUTS INTO ATRIA'S EARNINGS

During the report year, due to the weakening of the profitability 
of domestic business functions, the Atria Group did not match the 
previous year's financial result. As Atria is first and foremost a 
large slaughtering company, it suffered from the strong decline in 
the profitability of slaughtering and meat-cutting operations. On 
the other hand, the profitability of Swedish business functions 
improved, reaching the target level. However, the realignment of 
Samfood AB, which was integrated into the Swedish organisation at 
the beginning of September, burdened earnings in the last months 
of the year.

In 2002, profit before taxes amounted to EUR 20.4 million, while 
in 2001 the result was EUR 23.9 million. Turnover came in at EUR 
707.0 million (turnover in the previous year was EUR 637.4 
million), representing growth of 10.9 per cent. Domestic business 
operations exclusive of subsidiaries generated EUR 436.0 million, 
representing growth of 1.2 per cent. Turnover of the Sweden-based 
Lithells AB amounted to EUR 243.4 million, up 33.6 per cent. Liha 
ja Säilyke Oy had turnover of EUR 40.2 million. The dividends 
proposed by the company's Board of Directors, EUR 0.425 per share, 
are at the previous year's level. 

In its Finnish operations, Atria successfully increased its market 
share in the retail sector. Atria assumed the position of market 
leader in cold cut products. Likewise, Atria further consolidated 
its leadership in the summertime market for grilling sausages. 
However, the decline in the profitability of slaughtering and 
meat-cutting had the greatest weakening effect on profitability. 
Although the consumption of beef did not continue its downward 
slide in Finland, a substantial amount of extraordinary costs 
remained to be dealt with due to the BSE crisis; it was not 
possible to transfer these costs into sales prices. The strong 
Europe-wide overproduction of pork lowered sales prices in all 
export countries, weakening the profitability of these business 
functions. In the case of numerous products, the overall price 
trend in retail store products was unsatisfactory in Finland.


Acquisition of Samfood business functions turns Atria into a major 
player in Sweden

Last summer, Lithells AB acquired the business functions of 
Samfood from Lantbrukarnas Riksförbund, the agricultural 
producers' organisation of Sweden. Under its former owner, 
Samfood's operations were in the red and its balance sheet was 
overburdened. For this reason, Atria only acquired its business 
functions, fixed assets, inventories and trademarks. At present, 
Samfood's functions are being dynamically meshed with those of 
Atria Lithells AB. Atria Lithells AB's plant in Sköllersta will 
step up its output by about 30 per cent and will specialise in 
meat products, while Samfood AB's Mälmö plant will specialise in 
convenience foods, cold cut products and bacon and its Stockholm 
plant in retail-packed meat. In the first half of the year, the 
adjustment of operations will cause additional expenses, but it is 
believed that Samfood AB's full-year earnings will be in the 
black.

The post-adjustment goal is to merge the business functions of 
Samfood AB and Atria Lithells AB. Even now, the companies have the 
same core management handling production and marketing – and the 
same managing director at the helm.
 
Following the acquisition of the Samfood business functions, 
Lithells emerged as a challenger to market leadership, falling 
behind only a single local co-operative slaughtering company. The 
market share of the products our Group manufactures is already 
over 20 per cent. Because a large share of the market not held by 
these two companies is divided between small local companies, it 
is believed that Lithells is extremely well poised to claim an 
even larger market share as the consolidation trend continues in 
the retail sector. 

At present Lithells AB comprises not only Atria Lithells AB and 
Samfood AB but also Atria Concept AB, which is engaged in the fast 
food business, and Svensk Snabbmat för Storkök Ab, which is in the 
local wholesale business. The present (2003) size of the business 
functions, including Samfood AB, is SEK 3.3 billion, or EUR 360 
million. The Group is now in an excellent stage of development, 
both in terms of its growth and profitability.


Meat market in trouble

The BSE case found in Finland in December 2001 had a substantial 
impact on beef slaughtering and meat-cutting operations at the 
beginning of 2002. The new BSE testing regulations and carcass-
handling procedures were widely implemented. These procedures 
significantly complicated the entire beef production chain. Part 
of the costs involved have become permanent burdens in the chain. 
The situation improved, as far as testing procedures are 
concerned, when BSE testing picked up its pace and the National 
Veterinary and Food Research Institute EELA's unit in Kuopio began 
to perform such tests in the summer. By the end of 2002, beef 
consumption had returned to the same level as in the previous 
year, having slipped by about six per cent during the first half 
of the year. Demand for beef recovered clearly towards the end of 
the year in the rest of the EU as well, although beef consumption 
had slumped far more dramatically in the other EU countries than 
in Finland following the outbreak of BSE in autumn 2001. In the 
case of beef, the dry-aged Atria Takuumurea meats continued to 
bolster their position during the report year as a high-quality 
range of beef products. Takuumurea products are in good demand in 
the institutional catering and retail markets. In the pork market, 
producer price levels declined in 2002 in the entire EU area when 
the market situation weakened. Pork production volumes have been 
on the rise. The amount of pork processed by Atria has also risen, 
especially in meat-cutting. In particular, the changes in the 
market situation have impacted on the export market, where the 
pork supply was at a higher level in the report year than in 2001. 
Atria has traditionally exported pork to the Far East – namely 
Japan and Korea – and to Russia, Sweden and the United States.


Atria's processed meat production in Finland

Atria is the Finnish market leader when it comes to products such 
as cold cuts and grilling sausages. These products successfully 
improved their positions last year and this trend is expected to 
continue. Poultry consumption is still rising and our capability 
of meeting demand will improve significantly once the extension to 
Atria's poultry unit is completed in early summer. At that time, 
we will also be able to lower costs. All in all, Atria has managed 
to raise its degree of processing each year, but because meat 
production is now rising vigorously in Finland, the relative 
degree of processing cannot grow in the domestic market due to the 
increased meat production volume. For this reason, our 
subsidiaries and exports will assume greater significance in the 
future.

Liha ja Säilyke Oy pruned its product range last year, focusing on 
its core product areas: convenience foods and cold-cut production. 
Its profitability trend remained favourable. A plot has been 
acquired for the company with a view to the expansion of its 
business premises.


Outlook for 2003

The first half of the year is always weak for earnings. This year, 
we will post a loss during this period. It is the quietest part of 
the year for demand. Strong beef production at a time when 
domestic demand is at its lowest will put a damper on the Finnish 
market. At the same time, strong overproduction in Europe and the 
Russian purchase restrictions will hinder exports and lead to low 
price levels. However, it is now expected that the European meat 
market as a whole will improve towards the end of the year, and 
the price levels will be rectified at that time. 

Competition in the Finnish retail sector is continuing to heat up. 
The retail sector's willingness to pull industry into the price 
competition will make it more difficult to correct market price 
levels in step with the rise in costs. In such a situation, 
competition within the field also tends to increase.

At present, it is exceptionally difficult to predict full-year 
earnings in Finland. Regarding our subsidiaries, including those 
in Sweden, we believe that their total earnings will improve 
compared with their level in 2002. The earnings target for the 
entire Group's budget has been set at a higher level than the 
final result for 2002. The Group's turnover is expected to rise to 
EUR 850 million, of which Sweden will account for about EUR 360 
million.


Annual General Meeting, 7 May 2003

Atria Oyj's Annual General Meeting will be held at 14:00 on 7 May 
2003 in Kuopio on the company's premises at the address Ankkuritie 
2, 70460 Kuopio, Finland. 

The following matters will be dealt with at the meeting:
1. The matters specified as being the business of Annual General 
Meetings in
Article 16 of the Articles of Association
2. The Board of Directors' proposal to amend Articles 1 and 2 of 
the Articles of Association
The Board of Directors proposes that Article 1 of the Articles of 
Association, concerning the business name and domicile of the 
company, and Article 2, concerning its field of business, be 
amended as follows:

Article 1: The company's business name and domicile
The company's business name is Atria Yhtymä Oyj in Finnish, Atria 
Koncern Abp in Swedish and Atria Group plc in English. The company 
is domiciled in Kuopio.

Article 2: The company's field of business
The company's field of business comprises slaughtering, meat-
processing and convenience foods as well as related industrial and 
business operations. The company shall engage in these operations 
either on its own or through subsidiaries. 

The right to attend the Annual General Meeting rests with 
shareholders who have been recorded as shareholders by 25 April 
2003 in the company's shareholder register maintained by Finnish 
Central Securities Depository Ltd, unless otherwise stated in law.

Shareholders may register by mailing or telephoning the company's 
head office (P.O. Box 900, 60060 ATRIA, +358 6 416 8306 / Liisa 
Liukku) or by mailing or telephoning the company's office in 
Kuopio (P.O. Box 147, 70101 Kuopio, tel. +358 17 156 230 / Eija 
Vuorinne). The letter must be received before the end of the 
registration deadline. Any proxies should be submitted to the 
place of registration within the registration period.


ATRIA OYJ

Seppo Paatelainen
Managing Director



DISTRIBUTION

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