2015-02-12 07:00:03 CET
2015-02-12 07:00:09 CET
REGULATED INFORMATION
Atria Oyj - Financial Statement Release
Atria Plc's financial statement release 1 January - 31 December 2014
Atria Group's EBIT and net sales improved
Seinäjoki, Finland, 2015-02-12 07:00 CET (GLOBE NEWSWIRE) -- Atria Plc,
Financial Statement, 12 February 2015, at 8.00 am
ATRIA PLC'S FINANCIAL STATEMENT RELEASE 1 JANUARY - 31 DECEMBER 2014
Atria Group's EBIT and net sales improved
1.10. - 31.12.2014
- Consolidated net sales totalled EUR 363.4 million (EUR 360.6 million).
- Consolidated EBIT was EUR 18.6 million (EUR 10.6 million).
- Atria Finland's net sales totalled EUR 243.6 million (EUR 226.0 million).
- Atria Finland's EBIT was EUR 15.6 million (EUR 9.1 million).
- Atria Scandinavia's EBIT was EUR 4.7 million (EUR 5.7 million).
- Atria Russia's EBIT was EUR -0.9 million (EUR -1.9 million).
- Atria Baltic's EBIT came to EUR 0.1 million (EUR 0.1 million).
1.1. - 31.12.2014
- Consolidated net sales amounted to EUR 1,426.1 million (EUR 1,411.0 million).
- Consolidated EBIT was EUR 40.6 million (EUR 19.7 million).
- Atria Finland's net sales totalled EUR 945.5 million (EUR 886.8 million).
- Atria Finland's EBIT was EUR 33.6 million (EUR 32.9 million).
- Atria Scandinavia's EBIT came to EUR 14.9 million (EUR 12.2 million).
- Atria Russia's EBIT was EUR -5.7 million (EUR -21.0 million).
- Atria Baltic's EBIT was EUR -0.0 million (EUR 0.1 million).
- The Group's equity ratio was 44.0 per cent (31 December 2013: 42.2 %).
- The Group's net liabilities decreased to EUR 250.7 million (31 December 2013:
EUR 305.9 million).
Q4 Q4 Q1-Q4 Q1-Q4
-------------------------------
EUR million 2014 2013 2014 2013
-------------------------------------------------------
Net sales 363.4 360.6 1,426.1 1,411.0
EBIT 18.6 10.6 40.6 19.7
EBIT, % 5.1 2.9 2.8 1.4
Profit before taxes 16.3 7.1 34.0 6.9
Earnings per share, EUR 0.48 0.33 0.93 -0.15
Non-recurring items* 1.6 -2.0 1.0 -17.3
*Non-recurring items are included in the reported figures
Review 1 October - 31 December 2014
Atria Group's net sales for the fourth quarter totalled EUR 363.4 million (EUR
360.6 million). Net sales grew by EUR 2.8 million year-on-year. Consolidated
EBIT was EUR 18.6 million (EUR 10.6 million). The fourth quarter EBIT includes
a total of EUR 1.6 million of non-recurring items (EUR -2.0 million). EBIT
without non-recurring items was EUR 16.9 million (EUR 12.6 million).
Atria revised its forecast in November, expecting the 2014 EBIT without
non-recurring items to be at the same level as the previous year's EBIT of EUR
37.0 million.
In Sweden, Atria concluded an agreement for the sale of the Falbygdens cheese
business to Arla Foods AB, with a view to focusing on its core business. The
transaction includes the transfer of the following to Arla: the Falbygdens
cheese business and its employees, the production plant in Falköping and the
Falbygdens brand. The number of transferred employees is about 100. The sale
will reduce Atria's annual net sales by approximately EUR 52 million and EBIT
by some EUR 3 million. The assets and liabilities associated with the
Falbygdens cheese business have been classified as assets held for sale. The
deal is subject to the approval of the Swedish Competition Authority and
Consumer Agency. On 15 December 2014, the Swedish Competition Authority
announced its decision to carry out a phase two proceeding of the transaction.
Atria Finland's net sales for the fourth quarter totalled EUR 243.6 million
(EUR 226.0 million), showing growth of EUR 17.6 million year-on-year. This
increase was due to the consolidation of the operations acquired from
Saarioinen into Atria, and poultry feed sales. EBIT amounted to EUR 15.6
million (EUR 9.1 million). EBIT contains a refund of a tax-like payment in the
amount of EUR 1.2 million as a non-recurring item. The increase in comparable
EBIT was due to improved cost management and higher average sales prices
year-on-year. The integration of the operations in Jyväskylä and Sahalahti into
Atria's production processes went well and enhanced productivity.
Atria Scandinavia's net sales for the fourth quarter totalled EUR 94.9 million
(EUR 102.9 million). At comparable exchange rates, net sales fell by 4.1 per
cent year-on-year. This was due to the poor performance of the food market and
an increase in the market share of private labels. EBIT for the fourth quarter
amounted to EUR 4.7 million (EUR 5.7 million). EBIT was reduced by lower sales
volumes.
Atria Russia's net sales for the fourth quarter amounted to EUR 22.3 million
(EUR 30.6 million). At comparable exchange rates, net sales remained stable
year-on-year. EBIT was EUR -0.9 million (EUR -1.9 million). EBIT without
non-recurring items fell due to a significant increase in raw material prices.
In late 2013, Atria launched an efficiency improvement programme and decided to
discontinue industrial production and the operation of the logistics unit in
Moscow by the end of 2014. As part of the programme, Atria has sold the real
estate company in Moscow for EUR 12 million. A positive effect of EUR 0.5
million on earnings was recorded for the sale of the real estate and the
reorganisation of operations. The results for the comparative period contain a
non-recurring cost of EUR 2.0 million.
Atria Baltic's net sales for the fourth quarter amounted to EUR 8.5 million
(EUR 7.9 million). EBIT was EUR 0.1 million (EUR 0.1 million). Oversupply in
the European meat market decreased pork prices towards the end of the year,
affecting the ability of primary production to make a profit. In the retail
sector, Atria brands increased their market share, particularly in
consumer-packed meat.
Review 1 January - 31 December 2014
Atria Group's net sales for the review period totalled EUR 1,426.1 million (EUR
1,411.0 million). Net sales grew by EUR 15.1 million year-on-year. EBIT
amounted to EUR 40.6 million (EUR 19.7 million). EBIT without non-recurring
items came to EUR 39.6 million (EUR 37.0 million).
Atria lowered its EBIT forecast in April: the company expected the 2014 EBIT
without non-recurring items to be clearly lower than the previous year's EBIT
of EUR 37.0 million. Atria revised its forecast in November, expecting the 2014
EBIT without non-recurring items to be at the same level as the previous year's
EBIT of EUR 37.0 million. Rapid changes in the global meat market situation
affected business predictability in 2014. The reasons that led to the
imbalance in the meat market included Russia's import ban on EU meat and the
decrease in the market price of pork in Europe. Predictability was further
complicated by Atria's exposure to high volatility in the value of the Russian
rouble.
Atria's share of the income from joint ventures and associates for
January-December was EUR 6.2 million (EUR 2.3 million). A joint venture of
Atria, the Finnish Meat Research Institute LTK Co-operative, sold its
subsidiary Maustepalvelu Oy. LTK recorded a profit for the sale, of which EUR
7.3 million was paid to Atria as a dividend.
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 purchase price was EUR 29.2 million. In addition, EUR 4.2
million was paid for receivables from producers.
Investments in 2014 totalled EUR 62.7 million (EUR 41.1 million). During the
review period, the Group's free cash flow (operating cash flow - cash flow from
investments) was EUR 44.3 million (EUR 54.1 million) and net liabilities
decreased to EUR 250.7 million (31 December 2013: EUR 305.9 million).
Atria Finland's net sales for January-December totalled EUR 945.5 million (EUR
886.8 million). This increase was due to the consolidation of the operations
acquired from Saarioinen as of the beginning of February and the launch of
poultry feed sales at the beginning of the year. EBIT for the year amounted to
EUR 33.6 million (EUR 32.9 million). EBIT includes EUR 0.8 million of
non-recurring costs related to the takeover of the operations acquired from
Saarioinen. EBIT also includes a profit of EUR 0.6 million from the sale of
real estate company shares and a refund of a tax-like payment in the amount of
EUR 1.2 million as a non-recurring item. EBIT for the comparative period
contains EUR 1.1 million of non-recurring profit. The increase in EBIT was due
to improved cost-efficiency and higher average sales prices year-on-year. The
sale of Food Service products increased steadily over the course of the year.
Retail sales fell short of the previous year's figures. Raw material prices
were lower than in the year before.
Atria Scandinavia's net sales for January-December totalled EUR 371.9 million
(EUR 395.0 million). At comparable exchange rates, net sales fell by 1.9 per
cent year-on-year. A decline in meat consumption and the strengthening of the
market shares of private labels were the key reasons for the decrease in Atria
Scandinavia's net sales in 2014. EBIT for the year amounted to EUR 14.9 million
(EUR 12.2 million). This increase was the result of improved cost-efficiency in
the supply chain and more stable raw material prices.
Atria Russia's net sales for January-December totalled EUR 98.8 million (EUR
121.5 million), representing a drop of EUR 22.7 million. At a comparable
exchange rates, net sales fell by EUR 3.1 million year-on-year. This decrease
in comparable net sales was due to the discontinuation of primary production in
late 2013. EBIT for the year amounted to EUR -5.7 million (EUR -21.0 million).
In late 2013, Atria launched an efficiency improvement programme and decided to
discontinue industrial production and the operation of the logistics unit in
Moscow by the end of 2014. As part of the programme, Atria has sold the real
estate company in Moscow for EUR 12 million. A positive effect of EUR 0.5
million on earnings was recorded for the sale of the real estate and the
reorganisation of operations. EBIT for the comparative period includes EUR 17.4
million of non-recurring costs. EBIT for the year without non-recurring items
amounted to EUR -6.2 million (EUR -3.5 million). EBIT was reduced by an
increase in raw material prices and the weakening of consumers' purchasing
power. Production cost-efficiency has improved from the previous year.
Atria Baltic's net sales for January-December totalled EUR 34.5 million (EUR
32.9 million). EBIT for the year amounted to EUR -0.0 million (EUR 0.1
million). EBIT without non-recurring items was EUR 0.3 million (EUR 0.1
million). In June, Atria sold a factory located in Vilnius, Lithuania. The deal
resulted in a non-recurring sales loss of EUR 0.4 million.
Key indicators
EUR million 31.12.2014 31.12.2013
Shareholders´ equity per share, EUR 14.22 14.45
Interest-bearing liabilities 254.1 334.7
Equity ratio, % 44.0 42.2
Gearing, % 62.6 81.3
Net gearing, % 61.8 74.3
Gross investments in fixed assets 62.7 41.1
Gross investments, % of net sales 4.4 2.9
Average number of employees 4,715 4,669
Events after the period under review
At the beginning of January 2015, Atria decided to invest approximately 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
production facilities will be renovated and automated using the latest
production technology. The new production facilities will measure around 4,500
m2.
The investment will substantially raise the pig cutting plant's productivity
and profitability: it is expected to generate annual cost savings of some EUR 8
million in the pig cutting plant's operations. Statutory employer-employee
negotiations concerning the investment project were initiated immediately. The
expected duration of the project is about two years, over the course of which
the needs for reducing and relocating personnel will be specified. It is
estimated that personnel will need to be reduced by no more than 80
person-years.
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.
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 2014.
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 2014 as an attachment to this
stock exchange release. The full release is available on the company's website
at www.atriagroup.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, 12 February 2015, 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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