2016-04-28 07:00:02 CEST
2016-04-28 07:00:02 CEST
REGULATED INFORMATION
Atria Oyj - Interim report (Q1 and Q3)
Interim Report of Atria Plc 1 January - 31 March 2016
Atria Group's sales volumes increased, net sales remained steady
Seinäjoki, Finland, 2016-04-28 07:00 CEST (GLOBE NEWSWIRE) -- Atria Plc,
Interim Report, 28 April 2016 at 8.00 am
INTERIM REPORT OF ATRIA PLC 1 JANUARY– 31 MARCH 2016
Atria Group’s sales volumes increased, net sales remained steady
January–March 2016
- Consolidated net sales totalled EUR 314.5 million (EUR 314.5 million). When
the businesses that were sold in 2015 are taken into account, comparable net
sales increased by 2.5 per cent.
- Consolidated EBIT was EUR 1.6 million (EUR 0.7 million), or 0.5 per cent
(0.2%) of net sales. Improved cost-efficiency and a good sales structure at
Atria Russia supported the growth in EBIT.
- Atria is expanding its poultry operations and has signed an agreement to
purchase Lagerberg i Norjeby AB, a Swedish poultry business.
Q1 Q1
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EUR million 2016 2015 2015
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Net sales
Atria Finland 224.7 212.2 929.0
Atria Scandinavia 75.7 85.2 330.5
Atria Russia 13.6 15.8 75.1
Atria Baltic 7.7 7.6 32.9
Eliminations -7.2 -6.3 -27.4
Total net sales 314.5 314.5 1,340.1
EBIT
Atria Finland 1.7 1.9 29.8
Atria Scandinavia 0.7 1.9 12.8
Atria Russia -0.7 -2.3 -0.2
Atria Baltic -0.2 -0.1 -9.0
Unallocated 0.2 -0.8 -4.4
EBIT, total 1.6 0.7 28.9
EBIT, % 0.5% 0.2% 2.2%
Profit before taxes -0.3 -1.6 20.1
Earnings per share, EUR -0.03 -0.07 0.49
EBIT includes
non-recurring items:
Goodwill impairment - - -9.1
Sale of a subsidiary - - 1.9
Adjusted EBIT 1.6 0.7 36.1
Juha Gröhn, CEO
Price competition intensified in all market areas during the first quarter of
2016. In Finland in particular, pricing became a key competitive factor and
served to weaken EBIT development. Sales volumes improved as expected –
business was brisk – but prices were lower. The prices of Atria Finland's
products decreased by an average of 5 per cent year-on-year. In some product
categories the price decrease was even bigger. Productivity trends have been
good in the Finnish business. Inventories of frozen meat are reasonably small
because there has been plenty of export trade.
In Sweden, the prices of meat raw material have been high as customers and
consumers favour Swedish meat. We have not been able to pass on this cost in
full to the sales prices of meat products. By acquiring Lagerbergs, Atria will
be able to enter the Swedish chicken market and we are aiming to grow more
rapidly than the market as a whole in forthcoming years. This will require
investments into the Lagerbergs brand, development of the product portfolio and
industrial operations.
In Russia, this year has got off to a more stable start than the previous year,
although consumer purchasing power has continued to decline. The availability
of Russian raw materials has improved and some prices have decreased. Consumer
purchasing behaviour has become polarised. Prices have a decisive impact on
sales of everyday basics, while customers remain willing to pay relatively high
prices when buying food for special occasions.
Our industrial efficiency in Estonia will improve as production is centralised
in one factory – Valga. Our sales to retail customers increased, while
industrial sales fell. The price of fresh meat has decreased year-on-year and
price trends for meat products have been more stable.”
January–March 2016
Atria Group’s net sales for January–March amounted to EUR 314.5 million (EUR
314.5 million). EBIT amounted to EUR 1.6 million (EUR 0.7 million). Sales
volumes have increased. The decline in sales prices due to price competition
has weakened trends in net sales and EBIT. Improved cost-efficiency and a good
sales structure at Atria Russia supported the growth in EBIT. The figures for
the comparison period include the divested cheese business, which had annual
net sales of approximately EUR 50 million and EBIT of approximately EUR 3
million. Taking this into consideration, the Group’s comparable net sales
increased by 2.5 per cent.
Atria is expanding its poultry operations and has signed an agreement to
purchase Lagerberg i Norjeby AB, a Swedish poultry business. Lagerbergs is the
third largest supplier on the Swedish chicken market. The company has a
production plant and its own chicken-rearing facility in Blekinge, Southern
Sweden. Atria's annual net sales are expected to grow by about EUR 30 million.
Efforts will be made to conclude the transaction during the second quarter of
this year. On 1 April 2016 (after the period under review), the Swedish
Competition Authority unconditionally approved the business transaction between
Atria and Lagerbergs.
Lars Ohlin was appointed Atria Group's new Executive Vice President, Human
Resources and member of Atria Group's management team as of 1 April 2016. Lars
Ohlin will report to Juha Gröhn, the CEO.
Atria Finland’s net sales for January–March totalled EUR 224.7 million (EUR
212.2 million), up by EUR 12.5 million year-on-year. The increase in sales
volumes enabled net sales to increase although sales prices decreased on home
markets by an average of 5 per cent in comparison with the corresponding period
last year. In some product categories the decrease in sales prices was even
bigger. EBIT amounted to EUR 1.7 million (EUR 1.9 million). Atria’s
productivity improved.
Atria Scandinavia’s net sales for January–March amounted to EUR 75.7 million
(EUR 85.2 million). EBIT amounted to EUR 0.7 million (EUR 1.9 million). The
figures for the comparison period include the divested cheese business, which
had annual net sales of approximately EUR 50 million and EBIT of approximately
EUR 3 million. Price competition has intensified.
Atria Russia’s net sales for January–March amounted to EUR 13.6 million (EUR
15.8 million). Net sales in the local currency were at the same level as
year-on-year. EBIT was EUR -0.7 million (EUR -2.3 million). The most
significant reasons for the improved EBIT were a more efficient cost structure,
a more profitable product selection and a bit lower raw material costs in
comparison with the previous year.
Atria Baltic’s net sales for January–March totalled EUR 7.7 million (EUR 7.6
million). EBIT was EUR
-0.2 million (EUR -0.1 million). Atria's retail sales volumes showed positive
development. Sales of fresh and marinated meat showed particularly strong
improvement. EBIT was weakened by decreased sales prices due to an oversupply
of meat.
Key indicators
EUR million 31/03/16 31/03/15 31/12/15
---------------------------------------------------------------
Equity/share, EUR 14.15 14.40 14.16
Interest-bearing liabilities 216.9 266.4 199.6
Equity ratio, % 47.2 44.3 47.4
Net gearing, % 53.1 64.0 48.3
Gross investments in fixed assets 10.3 9.5 56.9
Gross investments, % of net sales 3.3 3.0 4.2
Average personnel (FTE) 4,213 4,382 4,271
Events after the period under review
On 1 April 2016, the Swedish Competition Authority unconditionally approved
Atria's acquisition of the entire share capital of Lagerberg i Norjeby AB, a
Swedish poultry company. The parties confirmed the deal in April, and the
operations will be consolidated into Atria from the beginning of May. The
purchase price is approximately EUR 18 million and it will be paid in cash.
Atria's annual net sales are expected to grow by about EUR 30 million.
Outlook for the future
Consolidated EBIT was EUR 28.9 million in 2015. In 2016, EBIT is expected to be
better than in 2015. In 2016, net sales are expected to grow.
Board of Directors' proposal for profit distribution
The Board of Directors proposes that a dividend of EUR 0.40 be paid for each
share for the financial year 2015.
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 December 2016 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, 28 April 2016, at 9:30 am at
Finlandia Hall, in the Terassi 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
Juha Gröhn
CEO
DISTRIBUTION
Nasdaq Helsinki Ltd
Major media
www.atria.com
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