2014-02-13 07:00:00 CET
2014-02-13 07:00:03 CET
REGULATED INFORMATION
Atria Oyj - Financial Statement Release
Atria Group's net sales increased – arrangements in Atria Russia weighed down performance
Seinäjoki, Finland, 2014-02-13 07:00 CET (GLOBE NEWSWIRE) -- Atria Plc's 2013
Financial Statement, 13 February 2014 at 8 am
ATRIA PLC'S FINANCIAL STATEMENT RELEASE 1 JANUARY - 31 DECEMBER 2013
Atria Group's net sales increased - arrangements in Atria Russia weighed down
performance
1 January - 31 December 2013
- Consolidated net sales totalled EUR 1,411.0 million (EUR 1,343.6 million).
- Consolidated EBIT was EUR 19.7 million (EUR 30.2 million) and EBIT without
non-recurring items amounted to EUR 37.0 million (EUR 30.7 million).
- Atria Finland's net sales grew by EUR 67.3 million, totalling EUR 886.8
million (EUR 819.5 million).
- Atria Finland's EBIT was EUR 32.9 million (EUR 36.5 million). EBIT without
non-recurring items amounted to EUR 31.8 million (EUR 37.0 million).
- Atria Scandinavia's EBIT was EUR 12.2 million (EUR 8.2 million) and EBIT
without non-recurring items amounted to EUR 13.2 million (EUR 8.2 million).
- Atria Russia's EBIT was EUR -21.0 million (EUR -8.6 million) and EBIT without
non-recurring items amounted to EUR -3.6 million (EUR -8.6 million).
- Atria stopped primary pork production in Russia and decided to discontinue
industrial production in Moscow. These arrangements resulted in the recognition
of EUR 25.0 million of non-recurring costs, EUR 17.4 million of which is
allocated to EBIT.
- Atria Baltic's EBIT was EUR 0.1 million (EUR -1.5 million).
- The Group's equity ratio was 42.2 per cent (41.5%).
1 October - 31 December 2013
- Consolidated net sales totalled EUR 360.6 million (EUR 360.6 million).
- Consolidated EBIT was EUR 10.6 million (EUR 7.8 million).
- Atria Finland's EBIT was EUR 9.1 million (EUR 11.0 million).
- Atria Scandinavia's EBIT was EUR 5.7 million (EUR 1.9 million).
- Atria Russia's EBIT was EUR -1.9 million (EUR -3.9 million) and EBIT without
non-recurring items amounted to EUR 0.1 million (EUR -3.9 million).
- Non-recurring costs related to the organisation of Atria Russia's operations
were recorded in the amount of EUR 2.0 million.
- Atria Baltic's EBIT was EUR 0.1 million (EUR -0.2 million). *Non-recurring
items are included in the reported figures.
Q4 Q4 Q1-Q4 Q1-Q4
-------------------------------
EUR million 2013 2012 2013 2012
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Net sales 360.6 360.6 1,411.0 1,343.6
EBIT 10.6 7.8 19.7 30.2
EBIT, % 2.9 2.2 1.4 2.2
Profit before taxes 7.1 6.1 6.9 18.9
Earnings per share, EUR 0.33 0.18 -0.15 0.35
Non-recurring items* -2.0 -0.5 -17.3 -0.5
*Non-recurring items are included in the reported EBIT.
Review 1 October - 31 December 2013
Atria Group's net sales for the fourth quarter totalled EUR 360.6 million (EUR
360.6 million). EBIT increased to EUR 10.6 million (EUR 7.8 million). EBIT
without non-recurring items was EUR 12.6 million (EUR 8.3 million). The fourth
quarter EBIT includes a total of EUR 2.0 million of non-recurring costs (EUR
0.5 million).
Atria decided to discontinue primary pork production in Russia and industrial
operations in Moscow. Atria recognised impairments totalling EUR 23.0 million
for the third quarter, EUR 15.4 million of which was allocated to EBIT.
Furthermore, EUR 2.0 million of non-recurring costs related to the
discontinuation of the aforementioned operations was recognised for the fourth
quarter.
Atria Finland's fourth quarter net sales totalled EUR 226.0 million (EUR 221.4
million), showing growth of EUR 4.6 million year-on-year. EBIT amounted to EUR
9.1 million (EUR 11.0 million). The increase in net sales was caused by
stronger market share and growth in sales volumes in the retail sector.
According to Atria's own estimate, the company's total market share was
approximately 27 per cent. The tough market conditions in both retail trade and
the wholesale and industrial market weighed down EBIT. Meat raw material prices
remained roughly at the same level year-on-year.
Atria Scandinavia's net sales for the fourth quarter totalled EUR 102.9 million
(EUR 103.2 million). In local currencies, net sales increased by 2.1 per cent
year-on-year. EBIT amounted to EUR 5.7 million (EUR 1.9 million). The growth of
EBIT was due to the stable raw material prices and improved sales structure.
Sales to Food Service and fast food customers were particularly strong.
Atria Russia's net sales for the fourth quarter amounted to EUR 30.6 million
(EUR 32.8 million). In the local currency, net sales increased by 3.5 per cent
year-on-year. EBIT was EUR -1.9 million (EUR -3.9 million). Non-recurring costs
related to the organisation of operations in Russia were recorded in the amount
of EUR 2.0 million. EBIT without non-recurring costs amounted to EUR 0.1
million (EUR -3.9 million). The profitability of industrial operations improved
owing to efficiency improvement measures.
Atria Baltic's net sales for the fourth quarter amounted to EUR 7.9 million
(EUR 8.8 million). Thanks to efficiency improvement measures, EBIT grew by EUR
0.3 million to EUR 0.1 million (EUR -0.2 million).
Review 1 January - 31 December 2013
Atria Group's net sales for the year totalled EUR 1,411.0 million (EUR 1,343.6
million), up by EUR 67.4 million year-on-year. Due to non-recurring costs,
consolidated EBIT weakened by EUR 10.5 million compared to the previous year,
standing at EUR 19.7 million (EUR 30.2 million). EBIT without non-recurring
items amounted to EUR 37.0 million (EUR 30.7 million).
Atria recognised EUR 25.0 million of non-recurring costs for its Russian
operations, EUR 17.4 million of which was allocated to EBIT. An impairment of
EUR 1.0 million was recognised for Atria Scandinavia's operations due to sold
property. A non-recurring profit of EUR 1.1 million resulting from the reversal
of an impairment charge on property that had been for sale was recognised in
Finland.
In March, Atria issued a fixed-interest bond worth EUR 50 million. The funds
were used for refinancing and for the Group's general financing needs. The loan
period is five years and a coupon rate of 4.375 per cent is payable on the
loan. The bonds are publicly traded on the NASDAQ OMX Helsinki Ltd stock
exchange.
The Group's free cash flow for the period under review (operating cash flow -
cash flow from investments) was EUR 54.1 million (EUR 49.7 million), and net
liabilities were EUR 305.9 million (EUR 363.9 million).
Atria Finland's net sales for the year totalled EUR 886.8 million (EUR 819.5
million), up by EUR 67.3 million year-on-year. EBIT amounted to EUR 32.9
million (EUR 36.5 million). EBIT includes a non-recurring profit of EUR 1.1
million resulting from the reversal of an impairment charge on property that
had been for sale in Forssa. Full-year net sales increased in all sales
channels, and growth was particularly strong in the retail sector. EBIT was
weighed down by deteriorating market conditions at the end of the year, the
higher price of meat raw material compared to the previous year and
persistently low export prices for meat.
Atria Scandinavia's net sales for the year totalled EUR 395.0 million (EUR
387.8 million), up by EUR 7.2 million year-on-year. In local currencies, net
sales grew by 1.8 per cent year-on-year. EBIT amounted to EUR 12.2 million (EUR
8.2 million). EBIT includes non-recurring costs of EUR 1.0 million resulting
from the impairment of the sold property. EBIT improved due to marketing
efforts at the beginning of the year and the improved sales structure towards
the end of the year, along with more stable meat raw material prices.
Atria Russia's net sales for the year amounted to EUR 121.5 million (EUR 126.3
million). In the local currency, net sales grew by 2.2 per cent year-on-year.
EBIT was EUR -21.0 million (EUR -8.6 million). Atria decided to discontinue
primary production in Russia and industrial operations in Moscow, concentrating
the latter in St Petersburg. As a result of these arrangements, Atria Russia
recognised a total of EUR 25.0 million of non-recurring costs, EUR 17.4 million
of which was allocated to EBIT and EUR 7.6 million to deferred tax assets. EBIT
without non-recurring costs amounted to EUR -3.6 million (EUR -8.6 million).
The results of industrial operations improved, but EBIT without non-recurring
costs was negative due to the poor profitability of primary production. It is
estimated that the discontinuation of primary production and the Moscow-based
production operations will generate annual cost savings of about EUR 6 million
compared to 2013. The cost savings will be fully realised as of the beginning
of 2015.
Atria Baltic's net sales for the year totalled EUR 32.9 million (EUR 34.2
million), representing a fall of EUR 1.3 million year-on-year. The EUR 0.1
million EBIT (EUR -1.5 million) was EUR 1.6 million higher than the EBIT for
the corresponding period last year. The positive performance was due to the
improved sales structure and the cost savings resulting from efficiency
improvement measures.
Key indicators
EUR million 31.12.13 31.12.12
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Shareholders´ equity per share EUR 14.45 15.15
Interest-bearing liabilities 334.7 370.5
Equity ratio, % 42.2 41.5
Gearing, % 81.3 85.9
Net gearing, % 74.3 84.3
Gross investments in fixed assets 41.1 56.2
% of net sales 2.9 4.2
Average FTE 4,669 4,898
Events after the period under review
Atria Plc and Saarioinen Oy signed a preliminary agreement in July under which
Atria will purchase Saarioinen's procurement, slaughtering and cutting
operations for beef, pork and chicken. In conjunction with the deal, Atria and
Saarioinen signed an agreement concerning meat deliveries from Atria to
Saarioinen. The operations covered by the deal employ about 400 people on
average. As a result of the deal, Atria's net sales are projected to grow by
around EUR 70 million per year. On 21 January 2014, the Finnish Competition and
Consumer Authority announced its approval of the acquisition. The operations
were consolidated into Atria as of 1 February 2014. The purchase price was
approximately EUR 30 million, and it was paid using cash funds and borrowed
capital. The acquisition had no material effect on the Group's key figures.
Outlook for the future
In 2013, consolidated EBIT without non-recurring costs was EUR 37.0 million. In
2014, it is projected to be higher. Net sales are expected to grow in 2014.
Board of Directors' proposal for profit distribution
The Board of Directors proposes that a dividend of EUR 0.22 be paid for each
share for the financial year 2013.
Disclosure
Atria Plc complies with the disclosure procedure in accordance with standard
5.2b of the Financial Supervisory Authority and publishes its financial
statement release for 1 January to 31 December 2012 as an attachment to this
stock exchange release. The full release is available on the company's website
at www.atriagroup.com.
More 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, 13 February 2014, at 9:30 am
at Atria Plc's Helsinki office, Läkkisepäntie 23, Helsinki. The presentation
material will be available on the company's website
(www.atriagroup.com/en/investors/FinancialInformation/quarterlyreports) after
the publication of the financial statements and as an attachment to this stock
exchange release.
ATRIA PLC
Juha Gröhn
CEO
DISTRIBUTION
Nasdaq OMX Helsinki Ltd
Major media
www.atriagroup.com
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