2016-02-11 07:00:04 CET
2016-02-11 07:00:04 CET
REGULATED INFORMATION
Atria Oyj - Financial Statement Release
Atria Plc's financial statement release 1 January - 31 December 2015
Atria's profitability is in good shape and cash flow is strong
Seinäjoki, Finland, 2016-02-11 07:00 CET (GLOBE NEWSWIRE) -- Atria Plc,
Financial Statement, 11 February 2016, at 8.00 am
ATRIA PLC’S FINANCIAL STATEMENT RELEASE 1 JANUARY – 31 DECEMBER 2015
Atria's profitability is in good shape and cash flow is strong
October–December 2015
- Consolidated net sales fell by 3.4 per cent to EUR 351.0 million (EUR 363.4
million). At comparable exchange rates, the decline was 2.4 per cent.
- Consolidated EBIT was EUR 4.8 million (EUR 18.6 million), which equates to
1.4 per cent (5.1%) of net sales. EBIT includes a goodwill impairment loss of
EUR 9.1 million in the Atria Baltic segment.
- Consolidated EBIT excluding non-recurring items was EUR 13.8 million (EUR
17.0 million).
January–December 2015
- Consolidated net sales fell by 6.0 per cent to EUR 1,340.2 million (EUR
1,426.1 million). At comparable exchange rates, the decrease was 3.8 per cent.
- Consolidated EBIT was EUR 28.9 million (EUR 40.6 million), which equates to
2.2 per cent (2.8%) of net sales. EBIT without non-recurring items was EUR 36.1
million (EUR 39.6 million).
- EBIT includes a total of EUR -7.2 million (EUR +1.0 million) of non-recurring
items.
- In January 2015, Atria initiated an investment of EUR 36 million in the
modernisation of the pig cutting plant in Nurmo, Finland.
- The sale of the Falbygdens cheese business to Arla in Sweden was completed in
April.
- Atria acquired the operations of Aalbaek Specialiteter, a manufacturer of
organic cold cuts, in Denmark in May.
- The Campofarm piggery real estate in Russia was sold in June.
- At the beginning of September, Atria Finland commenced negotiations related
to improving the productivity of the Sahalahti chicken unit.
- In September, Atria Scandinavia decided to increase the efficiency of its
sales, marketing and logistics operations in Sweden.
- Consolidated free cash flow in the review period amounted to EUR 68.4 million
(EUR 44.3 million).
- Net liabilities at year end amounted to EUR 195.5 million (31 December 2014:
EUR 250.7 million).
- The equity ratio was 47.4 per cent (31 December 2014: 44.0%).
Q4 Q4
-------------------------------
EUR million 2015 2014 2015 2014
-------------------------------
-------------------------------
Group 351.0 363.4 1,340.2 1,426.1
Net sales
EBIT 4.8 18.6 28.9 40.6
EBIT, % 1.4% 5.1% 2.2% 2.8%
Profit before taxes 2.8 16.3 20.1 34.0
Earnings per share, EUR 0.11 0.48 0.49 0.93
Non-recurring items* -9.1 1.6 -7.2 1.0
Net sales by segment
Atria Finland 248.0 243.6 929.0 945.5
Atria Scandinavia 83.8 94.9 330.5 371.9
Atria Russia 18.6 22.3 75.1 98.8
Atria Baltic 8.0 8.5 32.9 34.5
EBIT by segment
Atria Finland 13.7 15.6 29.8 33.6
Atria Scandinavia 3.2 4.7 12.8 14.9
Atria Russia -0.4 -0.9 -0.2 -5.7
Atria Baltic -9.1 0.1 -9.0 -0.0
*Non-recurring items are included in the
reported figures
October–December 2015
Atria Group’s net sales for the fourth quarter totalled EUR 351.0 million (EUR
363.4 million). Net sales fell by EUR 12.3 million year-on-year. This decrease
was partly due to the sale of the Falbygdens cheese business and the weakening
of the rouble. In addition, tough competition in the retail sector weighed down
net sales. EBIT amounted to EUR 4.8 million (EUR 18.6 million). Comparable EBIT
was EUR 13.8 million (EUR 17.0 million).
The challenging market environment in Estonia has weakened profit expectations
for Atria Baltic's business. As a result of this, a goodwill impairment loss of
EUR 9.1 million was recorded for Atria Baltic. The write-down affected EBIT but
it had no effect on cash flow.
Atria Finland’s net sales for the fourth quarter totalled EUR 248.0 million
(EUR 243.6 million), showing growth of EUR 4.4 million year-on-year. EBIT
amounted to EUR 13.7 million (EUR 15.6 million). EBIT for the comparative
period includes EUR 1.2 million of non-recurring income. The increase in net
sales is due to successful sales to retail and food service customers during
the Christmas season. Growth in wholesale, industrial and export sales, as well
as increased sales in the animal feed business, also strengthened net sales.
Tough price competition in the retail sector and difficult conditions on the
international meat market weighed down EBIT.
Atria Scandinavia’s net sales for October–December totalled EUR 83.8 million
(EUR 94.9 million) and EBIT was EUR 3.2 million (EUR 4.7 million). The decrease
in net sales and EBIT was due to the sale of the Falbygdens cheese business.
The consolidation of Aalbaek’s operations into Atria proceeded as planned.
Atria Russia’s net sales for the fourth quarter amounted to EUR 18.6 million
(EUR 22.3 million). Net sales in euro terms fell mainly due to the weakening of
the rouble. Net sales in the local currency were at the same level as in the
previous year. Sales growth was weighed down by a further decrease in consumer
purchasing power and consequent negative trends in retail. EBIT was EUR -0.4
million (EUR -0.9 million). Comparable EBIT came to EUR -0.4 million (EUR -1.4
million). EBIT improved thanks to increased productivity and an optimised
product selection.
Atria Baltic’s net sales for the fourth quarter amounted to EUR 8.0 million
(EUR 8.5 million). EBIT was EUR -9.1 million (EUR 0.1 million). Comparable
EBIT came to EUR -0.0 million (EUR 0.1 million). EBIT includes a goodwill
impairment loss of EUR 9.1 million. Net sales and EBIT continued to be weighed
down by export and sales bans imposed on the region in order to prevent the
spread of African swine fever.
The challenging market environment in Estonia has weakened profit expectations
for Atria Baltic's business. As a result of this, a goodwill impairment loss of
EUR 9.1 million was recorded for Atria Baltic. The write-down affected EBIT but
it had no effect on cash flow.
January–December 2015
Atria Group's full-year net sales totalled EUR 1,340.2 million (EUR 1,426.1
million). Net sales fell by EUR 85.9 million year-on-year. This decrease was
due to the sale of the Falbygdens cheese business and the weakening of the
rouble over the comparison period. Additionally, net sales were brought down by
lower-than-usual sales during the summer season and intense competition. EBIT
amounted to EUR 28.9 million (EUR 40.6 million). EBIT includes a total of EUR
-7.2 million (EUR +1.0 million) of non-recurring items. Comparable EBIT was EUR
36.1 million (EUR 39.6 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. 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. Cost savings will be
realised gradually with full effect from the beginning of 2017.
The Swedish Competition Authority approved the sale of Atria Scandinavia’s
Falbygdens cheese business to Arla on 11 March 2015. The sale price was EUR
29.3 million when the change in net working capital as per the sales agreement
was 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 approximately EUR 3 million.
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 the country. Aalbaek’s brands and business, including
all agreements, were transferred to Atria as part of the deal, along with a
shop and production facilities in Farre. The operations were consolidated into
Atria from 11 May 2015.
Atria sold a Russian subsidiary on 24 June 2015 for EUR 4.5 million. The
company owned a farm property near Moscow. Costs of EUR 0.6 million were
recorded for the sale as non-recurring items. Additionally, translation
differences accrued in equity improved earnings by EUR 2.5 million.
At the beginning of September, Atria Finland launched a project to improve the
productivity of chicken production at the Sahalahti plant. Removing overlapping
functions and improving efficiency is expected to result in annual savings of
about EUR 1.5 million, which will be realised from the second quarter of 2016.
In September, Atria Scandinavia initiated the reorganisation of its operations
in Sweden. The reorganisation will affect sales, marketing and logistics. Atria
expects operational restructuring and improved efficiency to result in annual
savings of about EUR 1.8 million. These savings will be realised from the
beginning of 2016.
Investments during the period under review totalled EUR 56.9 million (EUR 62.7
million). The Group's free cash flow for the period (operating cash flow - cash
flow from investments) was EUR 68.4 million (EUR 44.3 million) and net
liabilities were EUR 195.5 million (31 December 2014: EUR 250.7 million).
Atria Finland’s full-year net sales totalled EUR 929.0 million (EUR 945.5
million), showing a decrease of EUR 16.5 million in comparison with 2014. EBIT
amounted to EUR 29.8 million (EUR 33.6 million). Comparable EBIT was EUR 29.8
million (EUR 32.7 million). This decline was due to weaker consumer demand and
decreased sales prices. EBIT trends have been weighed down by oversupply on the
international meat market. Atria Finland has been able to adapt its own
operations to the challenging market environment. Thanks to this,
cost-efficiency is good and inventories of meat raw material are under control.
In 2015, difficult conditions on the meat market depressed the prices that
producers can charge for meat.
Atria Scandinavia's full-year net sales totalled EUR 330.5 million (EUR 371.9
million). This decrease was due to the sale of the Falbygdens cheese business,
completed on 1 April 2015. EBIT amounted to EUR 12.8 million (EUR 14.9
million). The sale of the cheese business reduced EBIT for 2015 by
approximately EUR 2 million.
Atria Russia's full-year net sales amounted to EUR 75.1 million (EUR 98.8
million). Net sales in euro terms fell due to the weakening of the rouble. EBIT
was EUR -0.2 million (EUR -5.7 million). Comparable EBIT came to EUR -2.1
million (EUR -6.2 million). EBIT improved thanks to price rises during the year
and an optimised product selection. Day-to-day efficiency improvements at the
Gorelovo plant and the use of local meat raw material also served to improve
EBIT. In 2015, the Sibylla business continued to grow. Sales volumes in the
retail business decreased and Atria lost some of its market share.
Atria Baltic's full-year net sales totalled EUR 32.9 million (EUR 34.5
million). EBIT was EUR -9.0 million (EUR -0.0 million). EBIT includes a
goodwill impairment loss of EUR 9.1 million. Comparable EBIT was EUR 0.1
million (EUR 0.3 million). Prolonged oversupply in the international meat
market and fierce price competition in the retail market have brought down meat
prices. Profitability was weakened by slow sales in the summer season and
measures taken to prevent the spread of African swine fever.
Key indicators
EUR million 31.12.15 31.12.14
------------------------------------------------------
Shareholders´ equity per share EUR 14.16 14.22
Interest-bearing liabilities 199.6 254.1
Equity ratio, % 47.4 44.0
Gearing, % 49.3 62.6
Net gearing, % 48.3 61.8
Gross investments in fixed assets 56.9 62.7
% of net sales 4.2 4.4
Average FTE 4,271 4,715
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 financial
statement release for 1 January to 31 December 2015 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, 11 February 2016, 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 Helsinki Ltd
Major media
www.atriagroup.com
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