Interim Report of Atria Plc 1 January - 30 September 2012

Atria Plc Interim Report 1 November  2012 at 8.00 am

Review Q3/2012

Atria Group’s net sales for July–September totalled EUR 341.1 million (EUR 325.5 million), showing growth of EUR 15.6 million compared to the corresponding period last year. EBIT improved by EUR 7.6 million year-on-year, amounting to EUR 16.6 million (EUR 9.0 million).

Atria Finland’s Q3/2012 net sales totalled EUR 205.1 million (EUR 197.5 million), showing growth of EUR 7.6 million year-on-year. The EUR 12.5 million EBIT (EUR 9.0 million) was EUR 3.5 million higher than the EBIT for the corresponding period last year. This increase was due to improved conditions in the meat market and higher sales prices especially in export and wholesale.

Atria Scandinavia's Q3/2012 net sales totalled EUR 100.1 million (EUR 93.5 million), representing an increase of EUR 6.6 million year-on-year. In the local currency, net sales were at the same level as last year. EBIT amounted to EUR 4.4 million (EUR 4.7 million). The reason for this decrease was the higher price of meat raw material. Atria has not been able to pass on all of the increased raw material costs to sales prices.

Atria Russia’s Q3/2012 net sales amounted to EUR 33.9 million (EUR 31.0 million). In the local currency, net sales grew by 5.5 per cent year-on-year. EBIT was EUR 0.6 million (EUR -3.3 million), showing an improvement of EUR 3.9 million over the comparative period. This increase was due to implemented efficiency improvement measures and the raising of sales prices.

Atria Baltic’s Q3/2012 net sales amounted to EUR 8.4 million (EUR 9.0 million). EBIT was EUR -0.4 million (EUR -0.4 million).

Olle Horm was appointed Executive Vice President of Atria Baltic and a member of Atria Group’s Management Team. He assumed his position on 15 August 2012 and reports to Juha Gröhn, CEO, Atria Plc.

Review 1 January–30 September 2012

Atria Group’s net sales for January–September totalled EUR 982.9 million (EUR 963.1 million), showing growth of EUR 19.8 million compared to the corresponding period last year. EBIT improved by EUR 18.6 million year-on-year, amounting to EUR 22.4 million (EUR 3.8 million). The results for the period include net EUR 0.1 million of non-recurring profit.

Atria Finland’s net sales for January–September totalled EUR 598.1 million (EUR 586.8 million), up by EUR 11.3 million year-on-year. The EUR 25.5 million EBIT (EUR 12.2 million) was EUR 13.3 million higher than the EBIT for the corresponding period last year. This increase was due to improved conditions in the meat market, higher sales prices, an enhanced sales structure and implemented efficiency improvement measures.

Atria Scandinavia's net sales for January–September totalled EUR 284.6 million (EUR 277.1 million), representing an increase of EUR 7.5 million year-on-year. In the local currency, net sales were at the same level as last year. EBIT amounted to EUR 6.3 million (EUR 9.7 million). The reason for this decrease was the higher price of meat raw material. Atria has not been able to pass on all of the increased raw material costs to sales prices.

Atria Russia’s net sales for January–September amounted to EUR 93.5 million (EUR 91.8 million). In the local currency, net sales were at the same level as last year. EBIT was EUR -4.7 million (EUR -14.5 million), showing an improvement of EUR 9.8 million over the comparative period. This increase was due to implemented efficiency improvement measures, price increases and the streamlining of the product range.

Atria Baltic’s net sales for January–September totalled EUR 25.4 million (EUR 26.3 million), representing a fall of EUR 0.9 million year-on-year. EBIT was EUR -1.3 million (EUR -0.4 million), which is EUR 0.9 million weaker than in the same period last year. The result for the comparative period contain EUR 0.9 million of non-recurring profit. The results were weighed down by the increase in raw material prices, which could not be fully transferred to sales prices.

Due to an increase in investments, the Group's free cash flow (operating cash flow – cash flow from investments) during the review period was EUR -1.5 million (EUR -0.6 million). Interest-bearing net liabilities came to EUR 417.8 million, showing an increase of EUR 15.1 million since the turn of the year. This increase was mainly due to exchange rate changes.

During the review period, a programme was launched to improve the profitability of Atria Scandinavia’s production of meat products. Atria is investing approximately EUR 4.7 million in new production equipment for the Malmö plant. The manufacture of ham products and the slicing of cold cuts will be transferred from the Halmstad plant to the Malmö plant. By the end of September, most of the production had been transferred to Malmö. The transfer will be completed by the end of 2012. The programme is expected to generate annual cost savings of approximately EUR 1.5 million. The savings will begin to materialise in 2012 and will be fully effective from the beginning of 2013.

During the review period, Atria Russia launched a programme aimed at improving production efficiency at the Sinyavino and Gorelovo plants in St Petersburg. These measures are expected to generate annual cost savings of around EUR 2.0 million, which will be fully realised from the beginning of 2013. Meat products are now produced at the centralised Sinyavino and Gorelovo plants.

Atria Plc’s Board of Directors decided to terminate the share incentive plan for Atria Group's key personnel and replace it with a new long-term reward programme. The share incentive plan will no longer be applied in 2012.

Key indicators

Outlook for the future

The Group’s EBIT was EUR 8.0 million in 2011. EBIT is expected to be considerably higher in 2012. Some growth in net sales is expected for 2012.

Publication procedure

Atria Plc complies with the publication procedure in accordance with standard 5.2b of the Financial Supervisory Authority and publishes its 1 JANUARY – 30 SEPTEMBER 2012 interim report release as an attachment to this company announcement. The full interim report is available on the company’s website at www.atriagroup.com.

For more information, please contact Juha Gröhn, CEO, Atria Plc, tel. +358 400 684 224.

Invitation to a press conference

A press conference conducted in Finnish will be arranged today 1 November 2012 at 9:30 am at Atria offices in Helsinki, address Läkkisepäntie 23, Helsinki. The presentation material will be available on the company’s website (www.atriagroup.com/en/investors/FinancialInformation/quarterlyreports) after the distribution of the interim report and as an attachment to this company announcement.


ATRIA PLC
Board of Directors


DISTRIBUTION
Nasdaq OMX Helsinki Ltd
Major media
www.atriagroup.com