2015-07-30 07:00:01 CEST
2015-07-30 07:00:06 CEST
REGULATED INFORMATION
Atria Oyj - Interim report (Q1 and Q3)
Interim Report of Atria Plc 1 January - 30 June 2015
Atria Group's EBIT at the previous year's level
Seinäjoki, Finland, 2015-07-30 07:00 CEST (GLOBE NEWSWIRE) -- Atria Plc,
Interim Report, 30 July 2015 at 8.00 am
INTERIM REPORT OF ATRIA PLC 1 JANUARY-30 JUNE 2015
Atria Group's EBIT at the previous year's level
April-June 2015
- Consolidated net sales fell by 9.1% to EUR 337.5 million (EUR 371.4 million).
At comparable exchange rates, the decline was 7.3%.
- Consolidated EBIT was EUR 8.4 million (EUR 8.4 million), or 2.5% (2.3%) of
net sales. EBIT includes a total of EUR +1.9 million (EUR -0.4 million) of
non-recurring items.
- Atria acquired the operations of Aalbaek Specialiteter, a Danish manufacturer
of organic cold cuts.
- The sale of the Falbygdens cheese business to Arla in Sweden was completed on
1 April 2015.
- The Campofarm piggery real estate in Russia was sold.
- Net gearing was 58.8% (31 December 2014: 61.8%).
January-June 2015
- Consolidated net sales fell by 6.6% to EUR 652.1 million (EUR 698.4 million).
At comparable exchange rates, the decline was 4.2%.
- Consolidated EBIT was EUR 9.1 million (EUR 5.8 million), or 1.4% (0.8%) of
net sales. EBIT includes a total of EUR +1.9 million (EUR -1.2 million) of
non-recurring items.
- Atria initiated an investment of EUR 36 million in the modernisation of a pig
cutting plant in Nurmo, Finland.
Q2 Q2 H1 H1
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EUR million 2015 2014 2015 2014 2014
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Group
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Net sales 337.5 371.4 652.1 698.4 1,426.1
EBIT 8.4 8.4 9.1 5.8 40.6
EBIT, % 2.5% 2.3% 1.4% 0.8% 2.8%
Profit before taxes 6.0 9.9 4.4 4.1 34.0
Earnings per share, EUR 0.18 0.28 0.11 0.09 0.93
Non-recurring items* 1.9 -0.4 1.9 -1.2 1.0
Net sales by segment
Atria Finland 233.7 246.5 445.9 463.4 945.5
Atria Scandinavia 80.3 95.4 165.4 183.8 371.9
Atria Russia 21.5 25.9 37.3 47.3 98.8
Atria Baltic 8.9 9.6 16.5 17.0 34.5
EBIT by segment
Atria Finland 4.7 5.9 6.6 6.2 33.6
Atria Scandinavia 2.5 3.4 4.4 4.4 14.9
Atria Russia 1.9 -1.1 -0.3 -3.2 -5.7
Atria Baltic 0.2 -0.1 0.1 -0.3 -0.0
*Non-recurring items are included in the
reported figures
April-June 2015
Atria Group's net sales for April-June totalled EUR 337.5 million (EUR 371.4
million). Net sales fell by EUR 33.8 million year-on-year. This decrease was
due to a slow start of the barbecue season and the transfer of the Falbygdens
cheese business to Arla on 1 April 2015. EBIT amounted to EUR 8.4 million (EUR
8.4 million), which includes a total of EUR +1.9 million (EUR -0.4 million) of
non-recurring items.
Atria acquired the operations of Aalbaek Specialiteter A/S, a Danish
manufacturer of organic cold cuts, for EUR 5.5 million. Aalbaek's annual net
sales amount to around EUR 10 million. Aalbaek is the top organic cold cuts
brand in Denmark. The transaction will strengthen Atria's market-leading
position in cold cuts in Denmark. Aalbaek's brands and business, including all
agreements, were transferred to Atria as part of the deal, along with a
charcuterie and production facilities in Farre. The operations were
consolidated into Atria from 11 May 2015.
The Swedish Competition Authority approved the sale of Atria Scandinavia's
Falbygdens cheese business to Arla on 11 March 2015. The selling price is
approximately EUR 30 million when the change in net working capital as per the
sales agreement is taken into account. The operations were transferred to Arla
Foods AB on 1 April 2015. The sale will reduce Atria's annual net sales by EUR
52 million and EBIT by EUR 3 million.
Atria sold a Russian subsidiary on 24 June 2015 for EUR 4.5 million. The
company owned a farm property near Moscow. Non-recurring costs of EUR 0.6
million were recognised for the sale. Additionally, translation differences
accrued in equity improved earnings by EUR 2.5 million.
Atria Finland's net sales for April-June totalled EUR 233.7 million (EUR 246.5
million), down by EUR 12.8 million year-on-year. This decrease was due to lower
consumer demand. The summer barbecue season started late, shrinking the total
market for the product groups represented by Atria by some 2% in terms of
value, compared to the corresponding period last year. EBIT amounted to EUR 4.7
million (EUR 5.9 million). EBIT was brought down by a decrease in meat prices,
which was due to the oversupply of meat in the international market. Atria
Finland's cost-efficiency has remained at a good level.
Atria Scandinavia's net sales for April-June totalled EUR 80.3 million (EUR
95.4 million). Net sales at comparable exchange rates were roughly the same as
in the corresponding period last year, when the changes arising from the sale
of the Falbygdens cheese business and the acquisition of Aalbaek are excluded.
EBIT for April-June was EUR 2.5 million (EUR 3.4 million). This decline was
mainly due to the sale of the Falbygdens cheese business.
Atria Russia's net sales for April-June totalled EUR 21.5 million (EUR 25.9
million). Net sales in the local currency grew by 6.8% year-on-year. This
growth was due to price increases. EBIT came to EUR 1.9 million (EUR -1.1
million), which includes a total of EUR +1.9 million (EUR 0.0 million) of
non-recurring items. Comparable EBIT was EUR 0.1 million (EUR -1.1 million).
Comparable EBIT mainly improved due to price increases, the elimination of
unprofitable products, and improved cost-efficiency in industrial operations.
Atria Baltic's net sales for April-June totalled EUR 8.9 million (EUR 9.6
million). EBIT amounted to EUR 0.2 million (EUR -0.1 million). The comparative
year includes EUR 0.4 million of non-recurring costs. The cold weather in the
early summer reduced the sale of barbecue products. The profitability of
exports and wholesale, along with primary production, deteriorated as a result
of oversupply in the European meat market.
January-June 2015
Atria Group's net sales for January-June totalled EUR 652.1 million (EUR 698.4
million). Net sales fell by EUR 46.3 million year-on-year. This decrease was
due to a slow start of the barbecue season, the transfer of the Falbygdens
cheese business to Arla and the weakening of the rouble over the comparative
period. EBIT amounted to EUR 9.1 million (EUR 5.8 million), which includes a
total of EUR +1.9 million (EUR -1.2 million) of non-recurring items. Comparable
EBIT was EUR 7.2 million (EUR 7.1 million).
At the beginning of the year, Atria Finland launched an investment worth around
EUR 36 million in expanding and modernising its pig cutting plant in Nurmo,
Finland. New production facilities will be built next to the old plant, and the
existing facilities will be renovated and automated using the latest production
technology. The investment will substantially raise the pig cutting plant's
productivity and profitability: it is expected to generate annual cost savings
of around EUR 8 million in the plant's operations.
In May, Atria acquired the operations of Aalbaek Specialiteter A/S, a Danish
manufacturer of organic cold cuts, for EUR 5.5 million. Aalbaek's annual net
sales amount to around EUR 10 million. Aalbaek is the top organic cold cuts
brand in Denmark. The transaction will strengthen Atria's market-leading
position in cold cuts in Denmark. Aalbaek's brands and business, including all
agreements, were transferred to Atria as part of the deal, along with a
charcuterie and production facilities in Farre. The operations were
consolidated into Atria from 11 May 2015.
The Swedish Competition Authority approved the sale of Atria Scandinavia's
Falbygdens cheese business to Arla on 11 March 2015. The selling price is
approximately EUR 30 million when the change in net working capital as per the
sales agreement is taken into account. The operations were transferred to Arla
Foods AB on 1 April 2015. The sale will reduce Atria's annual net sales by EUR
52 million and EBIT by EUR 3 million.
Atria sold a Russian subsidiary on 24 June 2015 for EUR 4.5 million. The
company owned a farm property near Moscow. Non-recurring costs of EUR 0.6
million were recognised for the sale. Additionally, translation differences
accrued in equity improved earnings by EUR 2.5 million.
Investments during the period under review totalled EUR 28.8 million (EUR 48.9
million). The Group's free cash flow for the period (operating cash flow - cash
flow from investments) was EUR 28.5 million (EUR -12.8 million) and net
liabilities were EUR 237.2 million (31 December 2014: EUR 250.7 million).
Atria Finland's net sales for January-June totalled EUR 445.9 million (EUR
463.4 million), down by EUR 17.5 million year-on-year. This decline was due to
lower consumer demand and the shrinking of the total market for the product
groups represented by Atria. EBIT amounted to EUR 6.6 million (EUR 6.2
million). EBIT was brought down by a decrease in meat prices, which was due to
the oversupply of meat in the international market. EBIT for the comparative
period included EUR 0.8 million of non-recurring costs.
Atria Scandinavia's net sales for January-June totalled EUR 165.4 million (EUR
183.8 million). This decrease was mainly due to the sale of the Falbygdens
cheese business, completed on 1 April 2015. EBIT for January-June came to EUR
4.4 million (EUR 4.4 million).
Atria Russia's net sales for January-June totalled EUR 37.3 million (EUR 47.3
million). Net sales in the local currency grew by 6.2% year-on-year. This
growth was due to price increases. EBIT was EUR -0.3 million (EUR -3.2
million), which includes a total of EUR +1.9 million of non-recurring items.
Comparable EBIT totalled EUR -2.2 million (EUR -3.2 million). In the first half
of the year, EBIT was weighed down by an increase in raw material prices and
lower consumer demand.
Atria Baltic's net sales for January-June totalled EUR 16.5 million (EUR 17.0
million). EBIT for January-June was EUR 0.1 million (EUR -0.3 million). EBIT
for the comparative period includes EUR 0.4 million of non-recurring costs.
Prolonged oversupply in the international meat market and fierce price
competition in the retail market have brought down meat prices. As a result,
the consumption of fresh meat has increased while that of meat products has
fallen. Low prices have reduced the profitability of sales.
Key indicators
EUR million 30.6.15 30.6.14 31.12.14
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Shareholders' equity per share, EUR 14.14 14.19 14.22
Interest-bearing liabilities 240.1 324.0 254.1
Equity ratio, % 45.1 40.9 44.0
Gearing, % 59.5 80.1 62.6
Net gearing, % 58.8 79.0 61.8
Gross investments in fixed assets 28.8 48.9 62.7
% of net sales 4.4 7.0 4.4
Average FTE 4,399 4,845 4,715
Outlook for the future
In 2014, consolidated EBIT without non-recurring items was EUR 39.6 million. In
2015, EBIT is projected to be at the same level and net sales are expected to
decrease.
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 2015 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 30 July 2015 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
Board of Directors
DISTRIBUTION
Nasdaq OMX Helsinki Ltd
Major media
www.atriagroup.com
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