Interim Report of Atria Plc 1 January - 31 March 2017

Atria Plc, Interim Report, 27 April 2017 at 8.00 am


INTERIM REPORT OF ATRIA PLC 1 JANUARY– 31 MARCH 2017

Atria records growth in net sales in all business areas

January–March 2017

- Consolidated net sales totalled EUR 332.5 million (EUR 314.5 million).
- Consolidated EBIT was EUR 1.2 million (EUR 1.6 million), which is 0.4 per cent (0.5%) of net sales.
- Atria Finland Ltd signed an agreement for exporting the first meat batch to China. Atria will deliver about three million kilograms of frozen pork products to its Chinese customers during 2017.
- The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.46 (EUR 0.40) be paid per share.
 

Juha Gröhn, CEO

“Atria’s net sales grew year-on-year in all business areas. Overall, the results were roughly the same as last year. When comparing the quarters, it can be seen that sales is lower in the first three months of a year, which also affects the results. In Finland and the Baltic countries, the results improved from the previous year, while Scandinavia and Russia declined.

Profitability management is largely about the management of product pricing. The share of sales based on campaigns has increased in recent years and, correspondingly, the share of products sold at standard prices has decreased.

The situation in the meat market is beginning to stabilise after years of instability. This means improved operating conditions for those business areas in which the company has slaughterhouse and meat-cutting operations.

Well-Beef and Lagerbergs, which we acquired last year, are continuing their operations as expected. Well-Beef is a stable player, and the investment plan of the Lagerbergs poultry company has been initiated according to plan.

The first pork deliveries to China will take place in May. Atria’s poultry units in Nurmo and Sahalahti have been granted export authorisations to Japan. The commercial effects will be evaluated later.

We have continued to implement the Healthy Growth strategy at a practical level. Early in the year, we launched a Group-wide project that will last for many years: Atria Way of Leading. The project focuses on the broad-based development of leadership skills at both individual and workplace levels.”

January–March 2017

Atria Group’s net sales for January–March amounted to EUR 332.5 million (EUR 314.5 million). EBIT totalled EUR 1.2 million (EUR 1.6 million). Net sales grew in all business areas, mainly due to the acquisitions made last year in Finland and Sweden. Sales to retail customers increased in Russia and Estonia. Atria Finland’s EBIT was up from the year before due to improvements in category profitability and sales structure. In Russia, EBIT was brought down by higher raw material prices.

Atria Finland Ltd signed a delivery agreement for exporting the first meat batch to China. Atria will deliver about three million kilograms of frozen pork products to its Chinese customers during 2017. The delivery includes all products derived from a pig’s carcase. The first delivery batch will be sent at the beginning of May.

Atria Finland’s net sales for January–March totalled EUR 228.2 million (EUR 224.7 million). This increase was due to the consolidation of Well-Beef’s operations into Atria late last year. EBIT amounted to EUR 4.1 million (EUR 1.7 million). Atria has made efforts to improve sales structure and category profitability.

Atria Scandinavia’s net sales for January–March amounted to EUR 84.1 million (EUR 75.7 million). In the local currency, net sales grew by 12.6 per cent due to the poultry company acquired last year. EBIT amounted to EUR 0.0 million (EUR 0.7 million). EBIT was brought down by an unfavourable sales structure.

Atria Russia’s net sales for January–March amounted to EUR 18.7 million (EUR 13.6 million). In the local currency, net sales grew by 4.6 per cent. EBIT was EUR -1.7 million (EUR -0.7 million). The increase in net sales was due to increased sales to retail and in the Sibylla business. Food Service sales declined during the review period. The results were brought down by an increase in meat raw materials costs compared to the previous year and investments in marketing.

Atria Baltic’s net sales for January–March totalled EUR 8.5 million (EUR 7.7 million). EBIT was EUR 0.5 million (EUR -0.2 million). Average sales prices were higher than in the same period last year, and the profitability of industrial operations has improved. Atria’s market share strengthened in the product groups represented by the company.

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.

Board of Directors’ proposal for profit distribution

The Board of Directors proposes that a dividend of EUR 0.46 be paid for each share for the financial year 2016.

Disclosure

Atria Plc complies with the disclosure procedure in accordance with standard 5.2b of the Financial Supervisory Authority and publishes its interim report for 1 January to 31 March 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, 27 April 2017, at 9:30 am at Finlandia Hall, in the Aurora room. Entrance is through door M4 or K4. 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