2014-07-24 07:00:01 CEST
2014-07-24 07:00:08 CEST
REGULATED INFORMATION
Atria Oyj - Interim report (Q1 and Q3)
Atria Group's net sales and EBIT grew in the second quarter
Seinäjoki, Finland, 2014-07-24 07:00 CEST (GLOBE NEWSWIRE) -- Atria Plc,
Interim Report, 24 July 2014 at 8.00 am
INTERIM REPORT OF ATRIA PLC 1 JANUARY - 30 JUNE 2014
Atria Group's net sales and EBIT grew in the second quarter
1 April - 30 June 2014
- Consolidated net sales totalled EUR 371.4 million (EUR 363.6 million).
- Consolidated EBIT was EUR 8.4 million (EUR 7.7 million).
- Atria Finland's net sales totalled EUR 246.5 million (EUR 230.9 million).
- Atria Finland's EBIT was EUR 5.9 million (EUR 7.4 million).
- Atria Scandinavia's EBIT was EUR 3.4 million (EUR 1.8 million).
- Atria Russia's EBIT was EUR -1.1 million (EUR 0.4 million).
- Atria Baltic's EBIT was EUR -0.1 million (EUR 0.0 million) and EBIT without
non-recurring items amounted to EUR 0.3 million (EUR 0.0 million).
- In April Atria lowered its EBIT forecast: EBIT in 2014 is expected to fall
clearly short of the previous year's operative EBIT of EUR 37.0 million.
1 January - 30 June 2014
- Consolidated net sales totalled EUR 698.4 million (EUR 692.0 million).
- Consolidated EBIT was EUR 5.8 million (EUR 10.9 million).
- Atria Finland's net sales totalled EUR 463.4 million (EUR 436.0 million).
- Atria Finland's EBIT was EUR 6.2 million (EUR 14.1 million) and EBIT without
non-recurring items amounted to EUR 7.0 million (EUR 13.0 million).
- Atria Scandinavia's net sales totalled EUR 183.8 million (EUR 192.3 million).
- Atria Scandinavia's EBIT was EUR 4.4 million (EUR 1.8 million).
- Atria Russia's EBIT was EUR -3.2 million (EUR -2.8 million).
- Atria Baltic's EBIT was EUR -0.3 million (EUR -0.4 million) and EBIT without
non-recurring items amounted to EUR 0.1 million (EUR -0.4 million).
- The Group's equity ratio was 40.9 per cent (31 December 2013: 42.2 %).
Q2 Q2 H1 H1
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EUR million 2014 2013 2014 2013 2013
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Net sales 371.4 363.6 698.4 692.0 1,411.0
EBIT 8.4 7.7 5.8 10.9 19.7
EBIT, % 2.3 2.1 0.8 1.6 1.4
Profit before taxes 9.9 4.1 4.1 4.8 6.9
Earnings per share, EUR 0.28 0.10 0.09 0.06 -0.15
Non-recurring items* -0.4 0.0 -1.2 1.1 -17.3
*Non-recurring items are included in the reported figures.
Review 1 April - 30 June 2014
Atria Group's net sales for April-June totalled EUR 371.4 million (EUR 363.6
million). Net sales grew by EUR 7.8 million year-on-year. EBIT was EUR 8.4
million (EUR 7.7 million), including a sales loss of EUR 0.4 million recognised
under the sale of a Lithuanian factory.
In April Atria lowered its EBIT forecast. The company expects the 2014 EBIT
without non-recurring items to be clearly lower than the previous year's EBIT
of EUR 37.0 million. According to the previously published EBIT forecast, the
Group's EBIT for 2014 was estimated to be higher than EUR 37.0 million. Net
sales are expected to grow in 2014.
The EBIT forecast was adjusted due to the difficult conditions in the Finnish
and Russian meat markets. An oversupply of pork and tougher competition have
decreased sales prices both in Finland and elsewhere in the EU. As a result,
Atria Finland's earnings in the first part of the year were not as high as
expected. Russia's import ban on EU pork and the weakening of the rouble have
raised the price of meat raw material in Russia by over 30 per cent from the
beginning of the year. Because of the highly competitive market situation,
Atria Russia has not been able to pass on the rapidly increased raw material
costs to sales prices.
Atria's share of the April-June income from joint ventures and associates was
EUR 4.7 million (EUR 0.5 million). Atria's joint venture, the Finnish Meat
Research Institute LTK Co-operative, sold its subsidiary Maustepalvelu Oy. For
the deal, LTK recognised a sales profit that increased Atria's share in LTK's
net assets.
Atria Finland's net sales for April-June totalled EUR 246.5 million (EUR 230.9
million), up by EUR 15.6 million year-on-year. This increase was due to the
consolidation of the operations acquired from Saarioinen and the increase in
poultry feed sales. However, the cold weather in the early summer slowed the
sales of seasonal products. EBIT was EUR 5.9 million (EUR 7.4 million), down by
EUR 1.5 million year-on-year. Price competition continued to be tight in
April-June. With the exception of the poultry product group, the overall
consumption of the product groups represented by Atria decreased year-on-year.
Atria will increase the efficiency of beef and pork procurement and processing
at its Jyväskylä plant to improve profitability and productivity. Operational
restructuring and improved efficiency will result in annual savings of about
EUR 5 million compared to the current cost level. These savings will be
realised from the beginning of 2015.
Atria Scandinavia's net sales for April-June totalled EUR 95.4 million (EUR
98.1 million). At comparable exchange rates, net sales grew by 1.1 per cent
year-on-year. Net sales increased more slowly due to the increased market share
of private labels in the Swedish retail sector in the product groups
represented by Atria. EBIT was EUR 3.4 million (EUR 1.8 million). The increase
in EBIT year-on-year is due to stable meet raw material prices and better cost
efficiency.
Atria Russia's net sales for April-June totalled EUR 25.9 million (EUR 31.5
million). At a comparable exchange rate, net sales fell by 7.9 per cent
year-on-year. The decrease in comparable net sales was due to the continuous
weakening of consumers' purchasing power and the discontinuation of primary
production at the end of last year. The total market for the product groups
represented by Atria decreased during the period under review. EBIT was EUR
-1.1 million (EUR 0.4 million). The prices of meat raw materials continued to
rise in April-June.
Atria Baltic's net sales for April-June totalled EUR 9.6 million (EUR 9.3
million). Sales volumes rose slightly. EBIT was EUR -0.1 million (EUR 0.0
million). EBIT includes a non-recurring sales loss of EUR 0.4 million for the
sale of a factory in Lithuania.
Review 1 January - 30 June 2014
Atria Group's net sales for January-June totalled EUR 698.4 million (EUR 692.0
million). Net sales grew by EUR 6.4 million year-on-year. EBIT was EUR 5.8
million (EUR 10.9 million). EBIT includes a total of EUR 1.2 million of
non-recurring costs. Non-recurring costs of EUR 0.8 million were recognised for
the takeover of the operations acquired from Saarioinen and a sales loss of EUR
0.4 million was caused by the sale of a Lithuanian factory.
Atria acquired Saarioinen Oy's procurement, slaughtering and cutting operations
for beef, pork and chicken. The operations were consolidated into Atria as of 1
February 2014. The total purchase price was EUR 29.2 million.
Investments during the period under review totalled EUR 48.9 million (EUR 20.7
million) including the purchase price EUR 29.2 million paid for the operations
acquired from Saarioinen. The Group's free cash flow for the period (operating
cash flow - cash flow from investments) was EUR -12.8 million (EUR -1.0
million) and net liabilities were EUR 319.5 million (31 December 2013: EUR
305.9 million).
Atria Finland's net sales for January-June totalled EUR 463.4 million (EUR
436.0 million). This increase was due to the consolidation of the operations
acquired from Saarioinen as of the beginning of February and the launch poultry
feed sales at the beginning of the year. Sales to the retail sector and Food
Service customers have remained stable. EBIT for January-June was EUR 6.2
million (EUR 14.1 million), down by EUR 7.9 million year-on-year. EBIT includes
EUR 0.8 million of non-recurring costs related to the takeover of the
operations acquired from Saarioinen. EBIT for the comparative period contains
EUR 1.1 million of non-recurring profit. EBIT for the beginning of the year was
weakened by tight price competition. However, the price of meat raw material
has decreased compared to the previous year. At the beginning of the year,
Atria made significant investments in order to strengthen the Atria brand.
Atria Scandinavia's net sales for January-June totalled EUR 183.8 million (EUR
192.3 million). At comparable exchange rates, net sales fell by 0.6 per cent
year-on-year. The increase in the sales of private labels throughout the first
part of the year in the Swedish retail market weighed down the sales of Atria's
own brands. EBIT for January-June was EUR 4.4 million (EUR 1.8 million). Better
cost efficiency and more stable meat raw material prices strengthened EBIT.
Atria Russia's net sales for January-June totalled EUR 47.3 million (EUR 58.9
million). At comparable exchange rates, net sales fell by 5.8 per cent
year-on-year. The decrease in comparable net sales was due to the
discontinuation of primary production at the end of last year and the weakening
of consumers' purchasing power. EBIT for January-June was EUR -3.2 million (EUR
-2.8 million). The weakening of EBIT was due to an increase of over 30 per cent
in meat raw material prices throughout the first part of the year.
Atria Baltic's net sales for January-June totalled EUR 17.0 million (EUR 16.6
million). EBIT for January-June was EUR -0.3 million (EUR -0.4 million). EBIT
includes a non-recurring sales loss of EUR 0.4 million for the sale of a
factory in Lithuania. EBIT without non-recurring items improved due to the
better sales structure and the improved cost efficiency of production.
Key indicators
EUR million 30.6.14 30.6.13 31.12.13
--------------------------------------------------------------
Shareholders´ equity per share EUR 14.19 14.78 14.45
Interest-bearing liabilities 324.0 382.6 334.7
Equity ratio, % 40.9 40.6 42.2
Gearing, % 80.1 90.8 81.3
Net gearing, % 79.0 86.5 74.3
Gross investments in fixed assets 48.9 20.7 41.1
% of net sales 7.0 3.0 2.9
Average FTE 4,845 4,749 4,669
Short-term business risks
Short-term risks associated with business environment in Russia have increased
from earlier. Otherwise, no significant changes have occurred in Atria Group's
short-term business risks compared to the risks described in the financial
statements for 2013.
Outlook for the future
The company expects the 2014 EBIT without non-recurring items to be clearly
lower than the previous year's EBIT of EUR 37.0 million. Net sales are expected
to grow in 2014.
Dividend distribution
The General Meeting decided that a dividend of EUR 0.22 will be paid for each
share for the financial year that ended on 31 December 2013. Dividends were
paid to shareholders who were entered on the record date for the payment of
dividends in the company's shareholder register, which is maintained by
Euroclear Finland Oy. The record date was 9 May 2014 and the date of payment
was 16 May 2014.
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
JUNE 2014 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 24 July 2014 at
10:00 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
Juha Gröhn
CEO
DISTRIBUTION
Nasdaq OMX Helsinki Ltd
Major media
www.atriagroup.com
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