2013-02-21 07:05:00 CET
2013-02-21 07:05:07 CET
REGULATED INFORMATION
Atria Oyj - Financial Statement Release
Atria Plc's Financial Statement Release 1 January - 31 December 2012
Atria's EBIT increased considerably, net sales up slightly
Seinäjoki, Finland, 2013-02-21 07:05 CET (GLOBE NEWSWIRE) -- Atria Plc
Financial Statement Release 21 February 2013, 8:05 am
ATRIA PLC'S FINANCIAL STATEMENT RELEASE 1 JANUARY - 31 DECEMBER 2012
Atria's EBIT increased considerably, net sales up slightly
1 JANUARY - 31 DECEMBER 2012
- Consolidated net sales totalled EUR 1,343.6 million (EUR 1,301.9 million)
- Consolidated EBIT increased to EUR 30.2 million (EUR 8.0 million)
- Atria Finland's EBIT grew to EUR 36.5 million (EUR 19.3 million)
- Atria Scandinavia's EBIT was EUR 8.2 million (EUR 13.8 million)
- Atria Russia's EBIT came to EUR -8.6 million (EUR -18.9 million)
- Atria Baltic's EBIT was EUR -1.5 million (EUR -2.2 million)
- Consolidated EBIT includes EUR 0.5 million (EUR -2.2 million) of
non-recurring costs
- The Group's equity ratio was 41.5 per cent (39.5%)
1 OCTOBER - 31 DECEMBER 2012
- The Group's net sales in Q4/2012 totalled EUR 360.6 million (EUR 338.7
million) and EBIT totalled EUR 7.8 million (EUR 4.1 million)
Q4 Q4 Q1-Q4 Q1-Q4
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EUR million 2012 2011 2012 2011
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Net sales 360.6 338.7 1,343.6 1,301.9
EBIT 7.8 4.1 30.2 8.0
EBIT, % 2.2 1.2 2.2 0.6
Profit before taxes 6.1 0.8 18.9 -4.7
Earnings per share, EUR 0.18 -0.02 0.35 -0.24
Non-recurring items* -0.5 -2.3 -0.5 -2.2
*Non-recurring items are included in the reported figures.
Review 1 October - 31 December 2012
Atria Group's net sales for the fourth quarter totalled EUR 360.6 million (EUR
338.7 million), showing growth of EUR 21.9 million year-on-year. EBIT increased
to EUR 7.8 million (EUR 4.1 million). The fourth quarter EBIT includes a total
of EUR 0.5 million of non-recurring costs (EUR -2.3 million).
In the year under review, the Atria Plc Board of Directors confirmed new
long-term financial targets for the Group. In the context of the strategy
process, the target for return on equity (ROE) has been revised, and targets
for the proportion of international operations have been removed.
Atria's new financial targets are as follows:
- EBIT: 5%
- Equity ratio: 40%
- Return on equity: 8%
- Dividend distribution of profit from period: 50%
Atria Finland's fourth quarter net sales totalled EUR 221.4 million (EUR 206.9
million), showing growth of EUR 14.5 million year-on-year. EBIT increased to
EUR 11.0 million (EUR 7.1 million). This increase was due to improved
conditions in the meat market and higher sales prices. The EBIT for the
reporting period includes a non-recurring expense of EUR 0.5 million relating
to the termination of bovine slaughtering at the Kuopio plant. The EBIT for the
reference year includes a non-recurring write-down of EUR 1.8 million for the
value of the Forssa logistics site.
Atria's Board of Directors decided in December to transfer the production of
cured sausages from Finland to Atria Scandinavia's production plant in Denmark.
The aim is to improve productivity and thus strengthen the company's position
as a cured sausage producer. The Kuopio plant will cease producing cured
sausages in autumn 2013. The move is expected to generate annual savings of
approximately EUR 0.3 million. All Atria employees working at the Kuopio
production plant will be offered the opportunity to be transferred to other
company units. Cured sausages sold under the Atria brand will nevertheless
still be manufactured using only Finnish meat.
Atria Plc purchased HKScan Finland Oy's shares in pet food manufacturer Best-In
Oy. Atria Plc and HKScan Finland Oy previously each held a 50 per cent interest
in Best-In Oy, established in 2002. By an agreement signed on 20 December 2012,
Atria Plc acquired the entire share capital of Best-In Oy. Best-In Oy is
located in Kuopio, Finland and its net sales in 2012 were EUR 5.1 million. The
company has 19 employees. Best-In Oy owns among others the Best-In, Hubert and
CAT pet food brands. The acquisition created a profit of EUR 1.5 million, which
is reported in the income statement after EBIT under "Income from
joint-ventures and associates".
Atria Scandinavia's fourth quarter net sales totalled EUR 103.2 million (EUR
97.7 million), showing growth of EUR 5.5 million year-on-year. In the local
currency, net sales increased by 1.4 per cent year-on-year. EBIT was EUR 1.9
million (EUR 4.2 million), down EUR 2.3 million compared to the corresponding
period last year. The decrease in EBIT was due to increasing meat raw material
prices. Atria Scandinavia has not been able to pass on increased raw material
costs in full to sales prices. The EBIT for the reference period includes a
non-recurring sales profit of EUR 0.7 million for the sale of the Saltsjö-Boo
facility.
Atria Russia's fourth quarter net sales totalled EUR 32.8 million (EUR 31.1
million), showing growth of EUR 1.7 million year-on-year. In the local
currency, net sales grew by 1.7 per cent year-on-year. EBIT was EUR -3.9
million (EUR -4.5 million), showing an improvement of EUR 0.6 million over the
comparative period. The poor profitability of primary production weighed on the
fourth quarter profits. Atria Russia also invested heavily in marketing to
increase future sales volumes.
Atria Russia's EBIT includes a non-recurring profit from the sale of a Moscow
plant facility and related non-recurring costs. In total these items had no
impact on the EBIT. The facility in question has previously been reported under
assets held for sale.
Atria Baltic's fourth quarter net sales totalled EUR 8.8 million (EUR 8.9
million), showing a decrease of EUR 0.1 million year-on-year. EBIT was EUR -0.2
million (EUR -1.7 million). The improvement in the reporting period is due to
an increase in the sales of further processed products. The EBIT for the
reference period includes a non-recurring loss of EUR 1.2 million from the sale
of a Lithuanian plant facility.
Review 1 January - 31 December 2012
Atria Group's net sales in 2012 amounted to EUR 1,343.6 million (EUR 1,301.9
million), up EUR 41.7 million from 2011. EBIT increased substantially to EUR
30.2 million (EUR 8.0 million). Consolidated EBIT includes EUR 0.5 million of
non-recurring costs (EUR -2.2 million).
The Group's operating cash flow was EUR 99.6 million (EUR 50.3 million) and
cash flow from investments was EUR -50.0 million (EUR -40.8 million).
Consolidated free cash flow amounted to EUR 49.7 million (EUR 9.5 million).
Interest-bearing net liablities came to EUR 363.9 million (EUR 402.8 million),
down EUR 38.9 million from 2011. In the fourth quarter, Atria Finland signed
agreements concerning the sale of trade receivables. These agreements decreased
the company's trade receivables by a total of EUR 61.2 million at the end of
the period.
At the beginning of 2012, Atria Plc's Board of Directors decided to terminate
the share incentive plan for Atria Group's key personnel and replace it with a
new long-term reward programme. The share incentive plan no longer applied in
2012.
Atria Finland's net sales in 2012 totalled EUR 819.5 million (EUR 793.7
million), showing growth of EUR 25.8 million year-on-year. EBIT amounted to EUR
36.5 million (EUR 19.3 million), up EUR 17.2 million from 2011. This increase
was due to improved conditions in the meat market and higher sales prices
across all customer accounts. In addition, the sales structure was more
favourable and cost savings resulting from efficiency measures improved the
performance. The EBIT for 2012 includes a non-recurring expense of EUR 0.5
million relating to the termination of bovine slaughtering at the Kuopio plant.
The EBIT for the reference year includes a non-recurring write-down of EUR 1.8
million for the value of the Forssa logistics site.
Atria Scandinavia's net sales in 2012 totalled EUR 387.8 million (EUR 374.9
million), showing growth of EUR 12.9 million year-on-year. In the local
currency, net sales were at the same level as in the previous year. EBIT
amounted to EUR 8.2 million (EUR 13.8 million). The reason for this decrease
was the higher price of meat raw material in comparison with the previous year.
Atria has not been able to pass on all of the increased raw material costs to
sales prices. The EBIT for the reference period includes a non-recurring profit
of EUR 0.7 million for the sale of the Saltsjö-Boo facility.
In January 2012, a programme was launched to improve the profitability of Atria
Scandinavia's production of meat products. Atria is investing approximately
EUR 4.7 million in new production equipment for the Malmö plant. The
manufacture of ham products and the slicing of cold cuts was transferred from
the Halmstad plant to the Malmö plant. The programme is expected to generate
annual cost savings of approximately EUR 1.5 million. The savings began to
materialise in 2012 and will be fully effective from the beginning of 2013.
Atria Russia's net sales for the year amounted to EUR 126.3 million (EUR 123.0
million). In the local currency, net sales were at the same level as the year
before. EBIT was EUR -8.6 million (EUR -18.9 million), showing an improvement
of EUR 10.3 million over the previous year. This increase was due to efficiency
improvement measures, price increases and the streamlining of the product
range. The poor profitability of primary production weighed down fourth quarter
profits. Atria Russia also invested heavily in marketing to increase future
sales volumes.
Atria Russia's EBIT includes a non-recurring profit from the sale of a Moscow
factory and related non-recurring costs. In total these items had no impact on
the EBIT. The facility in question had previously been reported under assets
held for sale.
During the reporting period, Atria Russia launched a programme aimed at
improving production efficiency at the Sinyavino and Gorelovo plants in St
Petersburg. These measures are expected to generate annual cost savings of
around EUR 2.0 million, which will be fully realised from the beginning of
2013. Meat products are now produced at the centralised Sinyavino and Gorelovo
plants.
Atria Baltic's net sales for the year amounted to EUR 34.2 million (EUR 35.2
million). EBIT was EUR -1.5 million (EUR -2.2 million), which is EUR 0.7
million up year-on-year. The improvement in the reporting period is due to an
increase in the sales of further processed products. EBIT in the reference
period includes a total of EUR 0.3 million of non-recurring costs.
Olle Horm was appointed Executive Vice President of Atria Baltic and a member
of Atria Group's Management Team as of 15 August 2012.
Key indicators
EUR million 31.12.12 31.12.11
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Equity/share. EUR 15.15 14.81
Interest-bearing liabilities 370.5 409.4
Equity ratio, % 41.5 39.5
Gearing, % 85.9 97.1
Net gearing, % 84.3 95.5
Gross investments in fixed assets 56.2 47.0
Gross investments, % of net sales 4.2 3.6
Average number of personnel (FTE) 4 898 5 467
Outlook for the future
The consolidated EBIT in 2012 was EUR 30.2 million. In 2013 it is expected to
be higher still. Some growth in net sales is also expected for 2013.
Dividend proposal
The Board of Directors proposes that a dividend of EUR 0.22 per share be paid
for the financial year 2012.
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 2012 as an attachment to this
stock exchange release. The full release is available on the company's website
at www.atriagroup.com.
More 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, 21 February 2013, 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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