Atria Plc half-year financial report 1 January - 30 June 2017
Atria Plc, Half-year financial report, 20 July 2017 at 8.00 am
ATRIA PLC HALF-YEAR FINANCIAL REPORT 1 JANUARY – 30 JUNE 2017
Atria Group's EBIT increased and net sales grew in all business areas
April–June 2017
- Consolidated net sales totalled EUR 368.4 million (EUR 341.3 million).
- Consolidated EBIT was EUR 10.0 million (EUR 6.1 million), or 2.7% (1.8%) of net sales.
- Exports to China began in May, and the first shipments of meat arrived in China at the end of June.
- The construction of the solar power park at Nurmo production plant began.
January–June 2017
- Consolidated net sales totalled EUR 701.0 million (EUR 655.8 million).
- Consolidated EBIT was EUR 11.2 million (EUR 7.8 million), which is 1.6 per cent (1.2%) of net sales.
- Atria Finland Ltd signed an agreement to begin exporting pork to China.
| Q2 | Q2 | H1 | H1 | ||
| EUR million | 2017 | 2016 | 2017 | 2016 | 2016 |
| Net sales | |||||
| Atria Finland | 252.4 | 233.9 | 480.6 | 458.6 | 932.3 |
| Atria Scandinavia | 90.2 | 88.8 | 174.3 | 164.5 | 343.4 |
| Atria Russia | 22.9 | 17.6 | 41.6 | 31.2 | 71.8 |
| Atria Baltic | 10.1 | 9.2 | 18.6 | 16.9 | 34.4 |
| Eliminations | -7.3 | -8.3 | -14.2 | -15.5 | -30.1 |
| Total net sales | 368.4 | 341.3 | 701.0 | 655.8 | 1,351.8 |
| EBIT | |||||
| Atria Finland | 7.7 | 3.0 | 11.8 | 4.7 | 24.2 |
| Atria Scandinavia | 1.2 | 3.5 | 1.3 | 4.2 | 8.4 |
| Atria Russia | 0.5 | 0.1 | -1.2 | -0.6 | -0.7 |
| Atria Baltic | 0.9 | -0.3 | 1.5 | -0.5 | 0.7 |
| Unallocated | -0.4 | -0.2 | -2.0 | 0.0 | -0.8 |
| EBIT, total | 10.0 | 6.1 | 11.2 | 7.8 | 31.8 |
| EBIT% | 2.7 % | 1.8 % | 1.6 % | 1.2 % | 2.3 % |
| Profit before taxes | 8.3 | 4.8 | 9.1 | 4.5 | 26.1 |
| Earnings per share, EUR | 0.23 | 0.13 | 0.21 | 0.10 | 0.65 |
| EBIT includes | |||||
| non-recurring items: | |||||
| Atria Baltic: Pig farm sale | - | -1.0 | - | -1.0 | -1.0 |
| Atria Scandinavia: Sale of the real estate company | - | 1.4 | - | 1.4 | 1.4 |
| Adjusted EBIT | 10.0 | 5.7 | 11.2 | 7.4 | 31.4 |
Juha Gröhn, CEO
“Atria’s net sales have increased during the first half of the year, and profits have improved compared to last year. The growth is based on both organic growth and on acquired operations. The strategy of healthy growth is being implemented, and it is especially delightful that net sales have grown in all business areas.
Atria's profits increased in Q2 in Finland, the Baltic countries, and Russia. In part, this has been influenced by the recuperation of the meat market, but also by our modernised product line and the successful execution of several projects improving productivity. In Estonia, production was centralised at a single plant last year. In Finland, the investment in the Nurmo pig cutting plant is at its final phase, and the plant's performance was significantly improved during the spring. The Russian meat product market situation has improved slightly, and the Sibylla concept continues to grow.
Scandinavian profits fell short of last year's levels. This was caused by increases in raw material costs and the costs incurred in taking over poultry operations. Investments at the poultry plant proceed according to plans.
Pork exports to China have begun, and the first shipments of meat from the Atria Nurmo plant arrived in China at the end of June. The demand is good, and the previously estimated amount of 3 million kilos during this year will most likely be surpassed.”
April–June 2017
Atria Group’s net sales for April–June totalled EUR 368.4 million (EUR 341.3 million). EBIT amounted to EUR 10.0 million (EUR 6.1 million). Net sales increased in all business areas. Sales volumes grew in all business areas. The acquisitions made in Finland and Sweden also supported growth. The positive development of EBIT was due to the better profitability in the business areas of Finland, Russia and the Baltic countries. The sales structure was better than during the corresponding period last year. High production costs at the poultry unit weighed down Atria Scandinavia’s EBIT.
Atria Plc donated a total of EUR 60,000 to two Finnish universities and a fund for higher education. The University of Eastern Finland, the University of Vaasa and the South Ostrobothnian University Fund received EUR 20,000 each.
Atria will build the largest solar power park in Finland at the Atria Nurmo production plant, in co-operation with Nurmon Aurinko Oy. The construction of the first phase of the project, partly financed by the Finnish Ministry of Economic Affairs and Employment, started at the beginning of June. The first sections of the power park will be connected to the power grid by the end of July. Ground-mounted 4 MWh solar panel fields will be built by autumn. The largest solar power park in Finland is estimated to be fully commissionable by autumn 2018.
January–June 2017
Atria Group’s net sales for January–June totalled EUR 701.0 million (EUR 655.8 million). EBIT amounted to EUR 11.2 million (EUR 7.8 million). Sales volumes grew in all business areas. The acquisitions made in Finland and Sweden also supported growth. Atria Finland's, Atria Baltic’s and Atria Russia's profitability was better than during the corresponding period last year.
In January, Atria Finland Ltd made an agreement to deliver the first meat batch to China. Atria will deliver about 3 million kilos of frozen pork products to China during 2017. The first product lot arrived in China at the end of June.
| Key indicators | |||
| EUR million | 30.6.17 | 30.6.16 | 31.12.16 |
| Shareholders’ equity per share, EUR | 14.17 | 13.95 | 14.49 |
| Interest-bearing liabilities | 251.2 | 235.9 | 217.8 |
| Equity ratio, % | 45.0 % | 44.8 % | 46.5 % |
| Net gearing, % | 59.6 % | 58.1 % | 50.5 % |
| Gross investments in fixed assets | 24.9 | 42.8 | 82.9 |
| Gross investments, % of net sales | 3.6 % | 6.5 % | 6.1 % |
| Average personnel (FTE) | 4,505 | 4,340 | 4,315 |
| The principles for calculating key indicators were presented in the 2016 annual financial statements. | |||
Outlook for the future
Consolidated EBIT was EUR 31.8 million in 2016. In 2017, EBIT is expected to be better than in 2016 and net sales are expected to grow.
Disclosure
Atria Plc complies with the disclosure procedure in accordance with standard 5.2b of the Financial Supervisory Authority and publishes its half-year financial report for 1 January to 30 June 2017 as an attachment to this stock exchange release. The full release is available on the company's website at www.atria.com.
For more information, please contact: Juha Gröhn, CEO, Atria Plc, tel. +358 400 684224.
Invitation to press conference
A press conference will be held in Finnish today, 20 July 2017, at 10:15 am at Atria Plc’s Helsinki office, Läkkisepäntie 23, Helsinki. The presentation material will be available on the company's website (www.atria.com) after the distribution of the interim report and as an attachment to this company announcement.
ATRIA PLC
Board of Directors
DISTRIBUTION
Nasdaq Helsinki Ltd
Major media
www.atria.com