Interim Report of Atria Plc 1 January - 31 March 2012

Atria Plc   Company Announcement   3 May 2012 at 8.00 am


INTERIM REPORT OF ATRIA PLC 1 January–31 March 2012

Atria Group’s EBIT improved clearly

- EBIT improved to EUR 0.1 million (EUR -4.2 million)
- Net sales increased to EUR 308.6 million (EUR 304.0 million)
- The Group’s equity ratio was 40.1 per cent (41.2%)
- Atria Finland’s EBIT grew to EUR 5.2 million (EUR 0.6 million)
- Atria Scandinavia’s EBIT decreased to EUR 0.2 million (EUR 2.3 million)
- Atria Russia’s EBIT improved to EUR -3.3 million (EUR -5.6 million)

*Extraordinary items are included in the reported figures.


Review Q1/2012

Atria Group’s net sales totalled EUR 308.6 million (EUR 304.0 million), growing by EUR 4.6 million compared to the corresponding period last year. EBIT improved by EUR 4.3 million year-on-year, amounting to EUR 0.1 million (EUR -4.2 million). The results for the corresponding quarter last year include a net amount of EUR -0.5 million of non-recurring expenses.

Atria Finland’s net sales totalled EUR 188.5 million (EUR 186.2 million), showing growth of EUR 2.3 million year-on-year. The EUR 5.2 million EBIT (EUR 0.6 million) was EUR 4.6 million higher than the EBIT for the corresponding period last year. This increase was due to an improved sales structure, implemented efficiency improvement measures and higher sales prices.

Atria Scandinavia’s net sales were EUR 89.5 million (EUR 87.9 million), representing a rise of EUR 1.6 million compared to the same period last year. In the local currency, net sales grew by 1.9 per cent year-on-year. Raw material costs weighed down EBIT to EUR 0.2 million (EUR 2.3 million), which is EUR 2.1 million lower than in the comparative period.

Atria Russia’s net sales amounted to EUR 28.3 million (EUR 28.3 million). In the local currency, net sales decreased by 2.5 per cent year-on-year. Operating loss was EUR -3.3 million (EUR -5.6 million), showing an improvement of EUR 2.3 million over the comparative period. This increase was due to implemented efficiency improvement measures and the streamlining of the product range.

Atria Baltic’s net sales totalled EUR 7.9 million (EUR 8.1 million), representing a fall of EUR 0.2 million year-on-year. Operating loss was EUR -0.5 million (EUR -0.2 million), which is EUR 0.3 weaker than in the same period last year. The results for the corresponding period last year contain EUR 0.3 million of non-recurring profit.

Due to the increase of investments the Group’s free cash flow for the period (operating cash flow - cash flow from investments) was EUR -5.5 million (EUR 1.2 million), and net liabilities were EUR 411.6 million (EUR 410.8 million).

During the review period, a programme was launched to improve the profitability of Atria Scandinavia’s production of meat products. The programme is aimed at streamlining and automating the production process of ham products and the slicing of cold cuts. 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. The Halmstad plant will be closed down after the production transfer. 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. These measures are expected to generate annual cost savings of around EUR 2 million, which will be fully realised from the beginning of 2013.

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.

After the review period, Olle Horm was appointed Executive Vice President of Atria Baltic and a member of Atria Group’s Management Team. Horm will assume his position on 15 August 2012 at the latest. He will report to Juha Gröhn, CEO, Atria Plc. Atria Baltic’s current Executive Vice President, Rauno Väisänen, will return to Atria Finland.

Outlook for the future

The Group’s EBIT was EUR 8.0 million in 2011. A considerably higher EBIT is anticipated for 2012, and performance is expected to improve, especially in the second half of the year. A moderate increase in net sales is also expected in 2012.

Dividend distribution proposal

The Board of Directors proposes that a dividend of EUR 0.20 be paid for each share for the financial year 2011.

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 – 31 March 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 3 May 2012 at 9:30 am at Finlandia Hall, in the Elissa room. Entrance is through door M3. 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
Juha Gröhn
CEO


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