2009-02-25 07:00:00 CET
2009-02-25 07:00:07 CET
REGULATED INFORMATION
Atria Oyj - Financial Statement Release
Atria Group's net sales increased, result weakened
Atria Plc Financial Statement Release February 25, 2009 at 8.00 am
ATRIA PLC'S FINANCIAL STATEMENT RELEASE 1 JANUARY - 31 DECEMBER 2008
ATRIA GROUP'S NET SALES INCREASED, RESULT WEAKENED
- net sales increased by 6.7%
- operative EBIT percentage was 2.9% (4.8% in 2007)
- strategically significant acquisitions in Russia, Sweden and Estonia
- increasing cost of raw materials weighed down Atria's performance
- the international economic crisis and weakening currencies had a negative
impact on the company's performance in the last three months of the year
Atria Group:
Q4/ Q4/
EUR million 2008 2007 2008 2007
------------------------------------------------------------------------
Net sales 361.1 337.1 1,356.9 1,272.2
EBIT 3.8 13.2 38.4 94.5
Operative EBIT* 3.8 13.7 39.9 61.4
Operative EBIT% 1.1 4.1 2.9 4.8
Profit before taxes -8.4 11.3 16.7 80.6
Earnings per share -0.21 0.28 0.42 2.56
* Operative EBIT = operating profit excluding significant non-recurring items.
Review Q4/2008
Atria Group's Q4 net sales showed a clear year-on-year increase. The sales and
profitability of Atria Finland were good also in Q4. The performance in other
business areas was unsatisfactory. The international economic crisis that
worsened during the autumn and the weakening against the euro of currencies
significant to Atria decreased the earnings in Sweden and Russia. The business
operations of the Russian company OOO Campomos, bought in the summer, are
included in the figures for the period as of 15 October 2008.
The economic slowdown had an impact on the development of sales volumes in all
of Atria's market areas. In St Petersburg, however, volumes grew strongly in
all product groups, and the company's market position strengthened further
during the period under review.
The performance of Atria Scandinavia and Atria Russia were weighed down by the
weakening of the Swedish krona and the Russian rouble during the period under
review. A considerable share of the raw material used by Atria in Sweden and
Russia is imported, the cost of which has risen due to the weakened currencies.
During the period, Atria was not fully able to transfer the increase in raw
material costs to sales prices in these business areas.
The acquisition of Campomos and the weakening of the Russian rouble against the
euro increased the Group's financial expenses.
Atria Finland 1 January - 31 December 2008
Q4/ Q4/
EUR million 2008 2007 2008 2007
-------------------------------------------------------------------------
Net sales 206.2 203.9 797.9 749.6
EBIT 11.8 9.9 33.9 43.2
Operative EBIT 11.8 9.9 34.4 43.2
Operative EBIT% 5.7 4.9 4.3 5.8
The sales of Atria Finland grew steadily in 2008, but the increase in raw
material and other industrial costs ate into profitability, particularly during
the first half of the year. In terms of value, the sales of product groups
represented by Atria in the Finnish consumer goods retail trade grew by
approximately 8 percent in 2008. The growth of Atria Finland's brands (Atria,
Forssan) far exceeded this, standing at about 14 percent. (Source: Atria 2008)
Sales and profitability developed positively during the barbecue season, which
is important for Atria's growth. During the barbecue season, Atria strengthened
its market leadership, and the market share of all of its product groups was
around 27 percent between May and July.
To enhance cost-efficiency, Atria Finland launched an operational efficiency
improvement programme at the beginning of the year. The aim for the programme is
to generate cost savings of EUR 4 million. Atria discontinued its operations at
the Kannus production plant. Bovine slaughtering and cutting were transferred to
the Kauhajoki and Kuopio production plants, and pig slaughtering and cutting to
the Nurmo production plant. Liha-Pouttu's meat procurement operations were
merged with A-Farmers Ltd's operations. Additionally, the logistics and meat
product manufacturing operations of the Forssa production plant were moved to
Nurmo. The efficiency improvement programme will result in a net reduction of
approximately 170 persons.
Q4 sales were good. In particular, the sales of convenience food products were
good in December. The impact of price increases was evident as improved
profitability in Q4.
Atria Scandinavia 1 January - 31 December 2008
Q4/ Q4/
EUR million 2008 2007 2008 2007
-----------------------------------------------------------------------
Net sales 112.4 116.0 455.2 457.8
EBIT -1.2 5.5 14.4 54.9
Operative EBIT -1.2 5.9 15.4 20.5
Operative EBIT% -1.1 5.1 3.4 4.5
Due to the weakened exchange rate of the Swedish krona, the 2008 net sales in
euros decreased by 0.6 per cent compared with the previous year's net sales.
Atria Scandinavia's year 2008 net sales in kronas increased by 3.9 % compared
with year 2007.
The development of Atria Scandinavia's earnings did not meet the target. The
positive development at the beginning of the year slowed down in late summer due
to the risen raw material costs, the weakened Swedish krona and the loss-making
salad and sandwich operations.
In summer 2008, Atria acquired the Swedish AB Ridderheims Delikatesser, a
producer of delicatessen products. The acquisition further strengthened Atria's
market position in Sweden. Ridderheims was consolidated into Atria as of 1 July
2008. In the autumn, Atria centralised the production of the Lätta Måltider unit
from Halmstad into Norrköping. As a result of the arrangement, 50 of the
Halmstad plant's employees were laid off.
In Q4, the weakening of the Swedish krona raised the prices of imported raw
materials, which weighed down Atria's performance in Sweden. The economic
slowdown has weakened demand in certain product groups towards the end of the
year. The higher raw material costs caused by the weak krona could not be
covered in full by the implemented price increases.
Costs in the amount of EUR 1.5 million resulting from credit losses and
restructurings were included in the figures for Q4.
Atria Russia 1 January - 31 December 2008
Q4/ Q4/
EUR million 2008 2007 2008 2007
---------------------------------------------------------------------
Net sales 35.5 16.9 93.8 65.6
EBIT -5.7 0.5 -3.4 4.3
Operative EBIT -5.7 0.5 -3.4 4.3
Operative EBIT% -16.1 3.0 -3.6 6.5
During 2008, Atria Russia grew significantly through both organic growth and a
corporate acquisition. At the end of July, Atria acquired meat processing
company OOO Campomos operating in the Moscow and St Petersburg regions. OOO
Campomos was consolidated into Atria as of 15 October 2008.
The new logistics centre in Gorelovo, St Petersburg, was opened in October, and
all of Pit-Product's deliveries have been dispatched from there since November.
The opening of the new meat product plant was postponed until 2009 due to
delayed completion of the water and drain connection. A decision was made at the
end of the year to invest in increasing the dried sausage capacity at the
Sinyavino plant.
With its approximately 30 per cent market share, Pit-Product was the market
leader in the St Petersburg region's modern consumer goods retail trade(Source:
AC Nielsen 2008). Pit-Product did not achieve its earnings targets, which was
mainly due to the strong increase in raw material prices. Sales prices were
increased several times during the year, but failed to catch up the continuously
increasing raw material prices.
The result of Campomos for the last three months of the year showed a loss (Q4
EBIT EUR -5.7 million). Atria aims to have the company's EBIT back in the black
during 2010. This requires that the company further reinforces its market
position in Moscow, launches new product groups, reduces costs and improves the
efficiency of its primary production, which was started up in 2008.
In Q4, the integration of Pit-Product's and Campomos's operations was started,
and this will continue into spring 2009. Synergy benefits will be achieved in
purchasing, logistics, marketing and production. The sales and market shares of
Pit-Product strengthened during the period under review. Atria Russia's
performance was weighed down by the loss-making Campomos and the weakened
rouble, which further increased the prices of imported raw materials.
Atria Baltic 1 January - 31 December 2008
Q4/ Q4/
EUR million 2008 2007 2008 2007
------------------------------------------------------------------------
Net sales 10.8 6.1 32.3 26.7
EBIT -0.7 -1.4 -3.8 -4.4
Operative EBIT -0.7 -1.3 -3.8 -3.1
Operative EBIT% -6.5 -21.4 -11.8 -11.6
Atria made two significant acquisitions in the Baltic region in 2008. AS Woro
Kommerts and AS Vastse-Kuuste Lihatööstus were consolidated into the Atria Group
as of 1 August 2008. With these acquisitions, Atria became the second largest
meat industry company in Estonia. The new position will create new development
opportunities for Atria throughout the Baltic region.
Atria's overall market share in Estonia was 22 per cent at the end of 2008.
During H2 2008, sales grew in all of the important product groups (cold cuts,
cooking products and consumer-packed meat). The acquisitions considerably
strengthened the assortment of the most important product groups and Atria's
position in the market. In the first part of the year, Atria's performance in
Estonia was weakened by the poor profitability of Valga Lihatööstus. The costs
of the company's own primary production rose sharply due to increased feed
prices. The sales price increases were not enough to compensate the risen costs.
In Q4, Atria Baltic's sales grew in the most important product groups, although
the intensified price competition and the bleak economic outlook weakened demand
during the second half of the year. The integration of the acquired companies
into Atria Baltic progressed as planned. The slaughtering and meat cutting
operations of Vastse-Kuuste were transferred to the Valga plant.
Events occurring after the period
After the period under review, Atria Scandinavia announced an extensive
efficiency improvement programme. The measures are expected to produce annual
savings of approx EUR 7 million, and the number of employees will be reduced by
approximately 100 at different sites.
Atria Baltic decided to centralise the production of meat products from the
Vastse-Kuuste plant to the Valga and Ahja production plants. Due to the
reorganisation the number of employees will be reduced by approximately 100 in
Atria Baltic sites during 2009. Production of new product groups will be started
at the Vastse-Kuuste production facilities in the autumn. The reorganisation
measures are expected to generate annual cost savings of approximately EUR 1.4
million.
Juha Ruohola, Managing Director, Atria Russia was appointed as General Manager
of OOO Campomos as of 10 February 2009. He will also continue as the Managing
Director for Atria Russia business area. Juha Ruohola reports to Atria Plc's
President and CEO Matti Tikkakoski. Sergey Ivanchenko was appointed as General
Manager of OOO Pit-Product and General Manager & Director of Atria Russia. He
reports to Juha Ruohola.
Investments
The Group's investments for 2008 totalled EUR 152.6 million and for Q4 EUR 61.3
million. The proportion of company acquisitions in the overall amount of
tangible and intangible investments for the year totalled EUR 89.3 million.
Personnel
The Group had an average of 6,135 employees (5,947) during the period.
Personnel by business area:
Atria Finland 2,378 (2,394)
Atria Scandinavia 1,691 (1,768)
Atria Russia 1,525 (1,278)
Atria Baltic 541 (507)
Atria Plc's Administration
In its organisation meeting following the General Meeting held on 25 June 2008,
Atria Plc's Supervisory Board re-elected retiring members Matti Tikkakoski and
Martti Selin. Ari Pirkola was appointed Chairman of the Supervisory Board, and
Chairman of the Board Martti Selin was reappointed.
Atria Plc's Board of Directors now has the following membership: Chairman Martti
Selin; Vice-Chairman Timo Komulainen; members Tuomo Heikkilä, Runar Lillandt,
Matti Tikkakoski and Ilkka Yliluoma.
Financing
Due to the financial market crisis the number of financing options generally
available for companies reduced. The liquidity of the bond and commercial paper
market was very poor, particularly towards the end of the year. Atria has
financed its maturing commercial papers with existing credit limits.
Availability of traditional bank financing was more uncertain than previously,
and loan margins were on the rise. On the other hand, the steep decline of
market interest rates that started in the autumn has reduced financing costs.
Atria was able to keep its financing position stable. During the period October
to December, Atria acquired new long-term, 5-7 year financing in the amount of
EUR 69 million, of which the proportion of TyEL (Employee Pensions Act) premium
lending was EUR 39 million. In addition, two committed credit limits were signed
in December, totalling EUR 32 million. There was a total of EUR 126 million in
unutilised committed credit limits at the end of the year.
Atria made four significant acquisitions in 2008. During the third quarter, the
acquisition of AB Ridderheims Delikatesser was completed in Sweden and the
acquisitions of AS Woro Kommerts and AS Vastse-Kuuste in Estonia. The
acquisition of OOO Campomos was completed in Russia in the fourth quarter. The
liabilities of the acquired companies were transferred in the transactions, and
the remainder of the purchase prices of the companies was paid with cash funds
and existing credit limits.
OOO Campomos had approximately EUR 66 million in foreign-currency-denominated
liabilities, the reorganisation of which was commenced after the acquisition. In
November, OOO Campomos amortised its euro-denominated loans by approx EUR 35
million. Of OOO Campomos's euro-dominated loans at the time of the financial
statements, EUR 13 million has been paid off in January 2009 and further
repayments will be made during the early part of the year. OOO Campomos's
foreign-currency-denominated loans generated exchange rate losses of
approximately EUR 5 million during the period due to the weakening of the
rouble.
Largest shareholders on 31 December 2008
KII A Total %
Itikka Co-operative 4,914,281 2,457,801 7,372,082 26.08
Lihakunta 4,020,200 3,351,797 7,371,997 26.08
Odin Norden 1,687,300 1,687,300 5.97
Skandinaviska Enskilda Banken 1,449,436 1,449,436 5.13
Nordea Bank Finland Plc 754,733 754,733 2.67
Pohjanmaan Liha Co-operative 269,500 480,038 749,538 2.65
Odin Finland 695,214 695,214 2.46
OP-Suomi Arvo 404,922 404,922 1.43
Public pension insurance company Veritas 309,000 309,000 1.09
Nordea Life Assurance Finland Ltd 225,000 225,000 0.80
Largest shareholders in terms of voting rights, 31 December 2008
KII A Total %
Itikka Co-operative 49,142,810 2,457,801 51,600,611 46.44
Lihakunta 40,202,000 3,351,797 43,553,797 39.20
Pohjanmaan Liha Co-operative 2,695,000 480,038 3,175,038 2.86
Odin Norden 1,687,300 1,687,300 1.52
Skandinaviska Enskilda Banken 1,449,436 1,449,436 1.30
Nordea Bank Finland Plc 754,733 754,733 0.68
Odin Finland 695,214 695,214 0.63
OP-Suomi Arvo 404,922 404,922 0.36
Public pension insurance company Veritas 309,000 309,000 0.28
Nordea Life Assurance Finland Ltd 225,000 225,000 0.20
Short-term Business Risks
The development of international meat raw material prices in the near future is
a significant risk in all of Atria's business areas. In Sweden and Russia, the
significant proportion of imported raw material creates further cost uncertainty
due to currency fluctuations. Changes in Russia's import duties also bring
further uncertainty to the imported raw material prices.
In Russia, a significant risk is the delayed start of the meat product plant in
Gorelovo, St Petersburg, and its impact on Atria's growth in the near future.
Improving Campomos's profitability requires rapid operative and strategic
measures.
The impact of the international financial market crisis on the availability and
price of financing increases the risk of the liquidity of Atria's customers
weakening and of possible credit losses in the future. The rise in loan margins,
the high interest rates in Russia and the fluctuation of the rouble in relation
to the euro also affect Atria's financial expenses.
Outlook for the Future
The net sales of the entire Group are estimated to grow in 2009. The economic
slowdown will have some effect on sales volumes and the demand for certain
product groups. Demand for more expensive products is expected to decline, while
the demand for inexpensive products will strengthen.
Because of the international economic situation, there is considerable
uncertainty related to the result prognosis, and it is difficult to anticipate
the international price development of meat raw material.
Due to the loss-making Campomos and the weakening of the rouble that continued
during the beginning of the year, Atria Russia's EBIT will remain below last
year's level.
Board Authorisations
The General Meeting held on 29 April 2008 resolved to authorise the Board of
Directors to decide, on one or several occasions, on a share issue involving a
maximum of 10,000,000 new Series A shares at the nominal value of EUR 1.70 per
share. The authorisation is valid until the closing of the next Annual General
Meeting, or until 30 June 2009, whichever occurs first. The authorisation does
not repeal the Board's current authorisation to decide on a reserve increase.
The General Meeting has previously authorised the Board of Directors to decide
on one or several reserve increases, which may increase the company's share
capital by a maximum of EUR 850,000. The authorisation is valid for a maximum of
five years from the date of the General Meeting's decision.
Purchase and transfer of treasury shares
The General Meeting held on 29 April 2008 authorised the Board of Directors to
decide on the purchase of up to 2,800,000 A shares of the Company with the
Company's unrestricted equity. The maximum amount of the Series A shares to be
acquired is less than 10 percent of all the Company's shares. The authorisation
is valid until the closing of the next Annual General Meeting, or until 30 June
2009, whichever occurs first.
The General Meeting held on 29 April 2008 authorised the Board of Directors to
decide on the transfer of treasury shares held by the Company in one or more
batches, so that a maximum total of 2,800,000 Series A shares are subject to the
authorisation. The authorisation is valid until the closing of the next Annual
General Meeting, or until 30 June 2009, whichever occurs first.
Based on the authorisation of the General Meeting, Atria Plc's Board of
Directors decided to purchase up to 300,000 A shares of the company. In
accordance with the authorisation, the shares to be purchased are intended to be
used as consideration in possible company acquisitions or other arrangements
relating to the company's business, for the financing of investments, for the
implementation of the company's incentive programme, for improvement of the
company's capital structure, or to be kept by the company, otherwise assigned or
cancelled. The acquisition of treasury shares began on 29 September 2008 and
will end no later than 30 June 2009.
A total of 35,260 own Series A shares held by the Company were transferred free
of charge to key persons belonging to Atria's incentive programme for the
accrual period 2007. The date of the share transfer was 19 December 2008. As of
31 December 2008, the Company held 47,157 treasury shares.
Corporate Governance Principles
Atria's Corporate Governance Principles and deviations from the Finnish
Corporate Governance Code 2008 are published on the Company's website at
www.atria.fi/konserni.
Dividend proposal
The Board of Directors proposes that a dividend of EUR 0.20 be paid for each
share for the financial year 2008.
Annual General Meeting on 29 April 2009
Atria Plc invites its shareholders to the Annual General Meeting, which will be
held on Wednesday, 29 April 2009 in Helsinki at the Finlandia Hall.
The AGM will address the following matters, among others:
1. Matters to be addressed at the AGM as set out in Article 16 of the Articles
of Association.
Restrictions on trading by insiders
The Company's insiders may not trade company shares during a period which is 14
days before the publication of the Company's interim reports and financial
statement release (“closed window”).
Financial calendar 2009
Atria Plc will publish three interim reports in 2009:
- interim report January to March on 28 April 2009 at approximately 08:00
- interim report January to June on 30 July 2009 at approximately 08:00
- interim report January to September on 27 October 2009 at approximately 08:00.
The Annual General Meeting will be held in Helsinki on 29 April 2009. The Annual
Report will be published during week 16/2009. The interim reports may also be
viewed on the company's website at www.atria.fi/konserni immediately after their
release.
Silent period
Atria Group's IR adopts a silent period, which means that Atria does not give
any statements about its financial situation three weeks prior to the
publication of interim reports and financial statements.
FINANCIAL INDICATORS
IFRS IFRS IFRS IFRS IFRS
31.12.08 31.12.07 31.12.06 31.12.05 31.12.04
Net sales, mill.EUR 1,356.9 1,272.2 1,103.3 976.9 833.7
Operating profit, mill.EUR 38.4 94.5 41.5 40.2 49.3
% of net sales 2.8 7.4 3.8 4.1 5.9
Financial income
and expenses, mill.EUR -22.3 -14.3 -7.3 -3.2 -5.2
% of net sales 1.6 1.1 0.6 0.3 0.6
Profit before tax 16.7 80.6 34.6 37.8 44.6
% of net sales 1.2 6.3 3.1 3.9 5.3
Return on equity (ROE), % 2.5 17.2 8.8 10.0 13.9
Return on investment (ROI), % 5.3 15.2 8.7 10.3 13.9
Equity ratio, % 38.4 47.6 42.8 43.0 50.9
Gross investments, mill.EUR 152.6 284.1 89.0 107.3 37.3
% of net sales 11.2 22.3 8.1 11.0 4.5
Interest-bearing liabilities 448.4 321.9 244.2 206.9 116.1
Debt/equity ratio, % 103.1 67.6 78.1 75.2 44.6
Gearing, % 94.6 60.1 66.8 68.9 39.7
Average FTE 6,135 5,947 5,740 4,433 3,638
R&D costs, mill.EUR 9.9 8.4 7.4 6.7 7.0
% of net sales * 0.7 0.7 0.7 0.7 0.8
Volume of orders ** - - - - -
* Booked in total as expenditure for the financial year.
** Not a significant indicator as orders are generally
delivered on the day following the order being placed.
SHARE-ISSUE ADJUSTED PER-SHARE INDICATORS
IFRS IFRS IFRS IFRS IFRS
31.12.08 31.12.07 31.12.06 31.12.05 31.12.04
Earnings per share (EPS), EUR 0.42 2.56 1.15 1.24 1.58
Shareholders´ equity per share, EUR 15.34 16.77 13.28 12.08 11.58
Dividend/share, EUR * 0.20 0.70 0.595 0.595 0.595
Dividend/profit, % * 48.1 27.4 51.7 48.0 37.7
Effective dividend yield * 1.7 4.0 3.3 3.3 5.3
Price/earnings (P/E) 27.9 6.8 15.9 14.5 7.2
Market capitalisation, mill.EUR 327.9 490.4 422.4 379.5 238.3
Share turnover/1000 shares A 4,077 7,933 3,899 5,704 3,800
Share turnover, % A 21.4 41.6 28.1 48.0 32.0
Number of shares, million, total 28.3 28.3 23.1 21.1 21.1
Number of shares A 19.1 19.1 13.9 11.9 11.9
Number of shares KII 9.2 9.2 9.2 9.2 9.2
Share issue-adjusted average
number of shares 28.3 26.1 21.8 21.1 21.1
Share issue-adjusted number
of shares on 31.12. 28.3 28.3 23.1 21.1 21.1
SHARE PRICE DEVELOPMENT
Lowest of period A 10.51 16.90 15.00 11.50 8.55
Highest of period A 18.29 28.77 21.50 18.18 11.75
At end of period A 11.60 17.35 18.29 17.99 11.30
Average price during period A 14.04 22.18 18.31 15.33 9.42
* Proposal from the Board of Directors
ATRIA PLC
CONSOLIDATED BALANCE SHEET
Assets
mill. EUR 31.12.08 31.12.07
Non-current assets
Property, plant
and equipment 493.5 455.6
Goodwill 151.1 151.8
Other intangible assets 70.5 64.3
Loan assets and other receivables 16.2 12.7
Investments 8.2 8.7
Total 739.5 693.1
Current assets
Inventories 113.3 87.3
Trade and other receivables 233.3 184.7
Cash in hand and at bank 37.1 35.6
Total 383.7 307.6
Non-current assets held for sale 11.3
Total assets 1,134.5 1,000.7
Equity and liabilities
mill. EUR 31.12.08 31.12.07
Equity
Equity belonging to the shareholders
of the parent company 433.5 474.1
Minority interest 1.4 1.9
Total equity 434.9 476.0
Non-current liabilities
Interest-bearing financial liabilities 320.8 194.1
Deferred tax liabilities 42.4 42.8
Other non-interest-bearing liabilities 0.2 0.3
Total 363.4 237.2
Current liabilities
Interest-bearing financial liabilities 127.6 127.8
Trade and other payables 208.6 159.7
Total 336.2 287.5
Total liabilities 699.6 524.7
Total equity and liabilities 1,134.5 1,000.7
CONSOLIDATED INCOME STATEMENT
mill. EUR 10-12/08 10-12/07 1-12/08 1-12/07
Net sales 361.1 337.1 1,356.9 1,272.2
Expenses -345.7 -313.0 -1,271.0 -1,133.2
Depreciations -11.6 -10.9 -47.5 -44.5
Operating profit 3.8 13.2 38.4 94.5
* % of Net sales 1.1 3.9 2.8 7.4
Financial income and
expenses -12.2 -2.2 -22.3 -14.3
Income from associates 0.3 0.6 0.4
Profit before tax -8.4 11.3 16.7 80.6
* % of Net sales -2.3 3.4 1.2 6.3
Income taxes 2.2 -3.2 -5.3 -13.0
Profit for the period -6.2 8.1 11.4 67.6
* % of Net sales -1.7 2.4 0.8 5.3
Profit distribution for
the accounting period:
To parent company
shareholders -5.9 8.1 11.8 66.7
To minority shares -0.3 -0.4 0.9
Total -6.2 8.1 11.4 67.6
Basic earnings/share, € -0.21 0.28 0.42 2.56
Diluted
earnings/share, € -0.21 0.28 0.42 2.56
CALCULATION OF CHANGES IN SHAREHOLDERS' EQUITY
mill. EUR Equity belonging to the shareholders of the parent Mino Share
company rity holders
inte equity
rest in total
Share Share Fair Inv. Trans Retained Total
capital premium value non- lation earnings
fond rest. diff.
equity
cap.
Shareholders'
equity
1.1.2007 39.3 138.5 0.7 128.1 306.6 5.8 312.4
Translation
differences -4.2 -4.2 -0.1 -4.3
Other changes 1.9 0.3 2.2 -4.7 -2.5
Profit for
the period 66.7 66.7 0.9 67.6
Distribution
of dividends -13.7 -13.7 -13.7
Share issue 8.8 110.2 -2.5 116.5 116.5
Shareholders'
equity
31.12.2007 48.1 138.5 1.9 110.5 -3.5 178.6 474.1 1.9 476.0
Translation
differences -30.0 -30.0 -0.1 -30.1
Other changes -1.8 -0.2 -2.0 -2.0
Treasury
shares -0.5 -0.5 -0.5
Profit for
the period 11.7 11.7 -0.4 11.3
Distribution
of dividends -19.8 -19.8 -19.8
Shareholders'
equity
31.12.2008 48.1 138.5 0.1 110.3 -33.5 170.0 433.5 1.4 434.9
CASH FLOW STATEMENT
mill. EUR 1-12/08 1-12/07
Cash flow from operating activities
Operating activities 69.9 91.4
Financial items
and taxes -32.3 -28.4
Cash flow from operating activities,
total 37.6 63.0
Cash flow from investing activities
Tangible and intangible assets -65.5 -92.2
Investments 3.6 -0.4
Sold shares in subsidiaries 39.1
Bought shares in subsidiaries -41.3 -124.6
Cash flow from investing activities,
total -103.2 -178.1
Cash flow from financing activities
Cash share issue 116.5
Loans drawn down 171.7 304.1
Loans repaid -86.0 -292.1
Dividends paid -19.8 -13.7
Acquired treasury shares -0.9
Cash flow from financing,
total 65.0 114.8
Change in liquid funds -0.6 -0.3
SEGMENT-SPECIFIC INFORMATION
GEOGRAPHICAL
mill. EUR 10-12/08 10-12/07 1-12/08 % 1-12/07 %
Net Sales
Finland 206.2 203.9 797.9 58.8 749.6 58.9
Scandinavia 112.4 116.0 455.2 33.5 457.8 36.0
Russia 35.5 16.9 93.8 6.9 65.6 5.2
Baltic 10.8 6.1 32.3 2.4 26.7 2.1
Eliminations -3.8 -5.8 -22.3 -1.6 -27.5 -2.2
Total 361.1 337.1 1,356.9 100.0 1,272.2 100.0
EBIT
Finland 11.8 9.9 33.9 88.3 43.2 45.7
Scandinavia -1.2 5.5 14.4 37.5 54.9 58.1
Russia -5.7 0.5 -3.4 -8.9 4.3 4.6
Baltic -0.7 -1.4 -3.8 -9.9 -4.4 -4.7
Unallocated -0.4 -1.3 -2.7 -7.0 -3.5 -3.7
Total 3.8 13.2 38.4 100.0 94.5 100.0
Operative EBIT
Finland 11.8 9.9 34.4 86.2 43.2 70.4
Scandinavia -1.2 5.9 15.4 38.6 20.5 33.4
Russia -5.7 0.5 -3.4 -8.5 4.3 7.0
Baltic -0.7 -1.3 -3.8 -9.5 -3.1 -5.0
Unallocated -0.4 -1.3 -2.7 -6.8 -3.5 -5.7
Total 3.8 13.7 39.9 100.0 61.4 100.0
Investments
Finland 23.8 15.6 28.6 10.1
Scandinavia 41.8 27.4 213.9 75.3
Russia 68.6 45.0 33.0 11.6
Baltic 18.4 12.1 8.6 3.0
Total 152.6 100.0 284.1 100.0
mill. EUR 31.12.08 % 31.12.07 %
Assets
Finland 533.5 47.0 509.9 51.0
Scandinavia 368.5 32.5 373.4 37.3
Russia 187.2 16.5 78.7 7.9
Baltic 68.6 6.0 48.1 4.8
Eliminations -23.3 -2.1 -9.4 -0.9
Total 1,134.5 100.0 1,000.7 100.0
Liabilities
Finland 263.7 37.7 186.5 35.5
Scandinavia 268.3 38.4 259.8 49.5
Russia 144.1 20.6 54.4 10.4
Baltic 44.3 6.3 34.1 6.5
Eliminations -20.8 -3.0 -10.1 -1.9
Total 699.6 100.0 524.7 100.0
ACQUIRED OPERATIONS
Acquisition Ownership Domicile
date share, %
AB Ridderheim & Grönvall 1.7.2008 100 Sweden
Subsidiaries:
Ridderheims Delikatesser AB 100 Sweden
Smakfabriken i Göterborg AB 100 Sweden
KB Joddlaren 100 Sweden
Ridderheims Delikatesser i Norge AS 1.7.2008 100 Norway
Atria Scandinavia's strategy is to focus on products with a higher degree of
processing. The acquisition of Ridderheims supports this strategy. The
acquisition strengthens Atria's position in the fresh delicatessen products
market, which is currently one of the fastest growing segments in the consumer
goods retail trade.
Established in 1987, AB Ridderheims Delikatesser's product selection includes
beer sausages, hams, cheese, canned foods and tapas ingredients. Ridderheims is
a strong, well-known and innovative brand in the industry. The company operates
in Gothenburg and employs a staff of 110.
The aim is to merge the product selections of Ridderheims and Falbygdens Ost
into Atria Deli. The merger will create the finest and most comprehensive range
of fresh delicatessen products in the Nordic countries and improve the position
of both companies in export markets. Ridderheims currently exports its products
to eleven countries. The merger will allow it to further increase its sales in
Sweden and step up its exports, as Atria has a strong position and network of
distributors in Finland, Denmark, the Baltic countries and Russia.
At the same time, Ridderheims' distribution network will enable Falbygdens Ost
to export more of its products.
Furthermore, the acquisition will generate savings, as the manufacture of
products which Ridderheims used to buy from subcontractors is transferred to
Atria's plants.
Ridderheims' net sales for the previous accounting period were EUR 54.4 million
and EBIT EUR 1.9 million.
Acquiree's
Fair current
value book value
Property, plant and
equipment 5.9 5.9
Goodwill 13.9
Other intangible assets 8.1
Investments 0.1 0.1
Inventories 3.0 3.0
Receivables 5.5 5.6
Cash and cash equivalents 2.6 2.6
Total assets 39.1 17.2
Deferred tax liabilities 3.7 1.4
Interest-bearing financial liabilities 2.7 2.7
Other liabilities 7.0 7.0
Total liabilities 13.4 11.1
Net assets 25.7 6.1
Purchase price 25.7
Cash and cash equivalents of acquired
company 2.6
Effect on cash flow 23.1
Acquisition Ownership Domicile
date share, %
AS Vastse-Kuuste Lihätööstus 1.8.2008 100 Estonia
AS Woro Kommerts 1.8.2008 100 Estonia
AS Vastse-Kuuste Lihatööstus manufactures a range of cold cuts, sausages, dried
sausages and consumer-packed meat. The company has its own slaughterhouse and
cutting plant. Founded in 1994, Vastse-Kuuste reported net sales of EUR 8.8
million in 2007. Its total market share in terms of value is 6 % (Source: AC
Nielsen 2008), and it employs approximately 140 persons. Over the past few
years, Vastse-Kuuste has invested in the modernisation and capacity improvement
of its production plant. Its market position has also strengthened due to the
new investments. The company has a particularly strong position in cold cuts in
the Estonian market. The production plant is located in southern Estonia,in
Vastse-Kuuste.
Established in 1993, AS Woro Kommerts is a company specialising in the
production of meat products. Woro's product selection includes smoked sausages
and meat products, raw sausages, grill sausages and frankfurters. The company's
total market share in terms of value is 13 % (Source: AC Nielsen 2008), which
makes it Estonia's second largest meat processing company. In recent years, Woro
has invested actively in the improvement of product quality and brand
development. In 2007, it posted net sales of EUR 9.9 million and employed some
170 staff. The company has a production plant in Ahja, near Tartu and a
distribution centre in Tartu. Built at the turn of the millennium, the
production plant boasts modern production machinery.
Through these acquisitions, Atria will complement and expand its current product
selection for retail customers in Estonia. Combined with the operations of Woro
and Vastse-Kuuste, AS Valga Lihatööstus is the second largest player in the
Estonian meat processing market, with net sales of approximately EUR 42 million.
The merger will generate significant synergies and help establish a firmer
foothold in the market.
The companies' net sales for the previous accounting period were EUR 18.7
million and EBIT EUR 0.9 million.
Acquiree's
Fair current
value book value
Property, plant and
equipment 4.8 4.8
Goodwill 6.2
Other intangible assets 3.6
Inventories 1.1 1.1
Receivables 2.0 2.0
Cash and cash equivalents 2.6 2.6
Total assets 20.3 10.5
Deferred tax liabilities 0.8
Interest-bearing financial liabilities 1.1 1.1
Other liabilities 2.9 2.9
Total liabilities 4.8 4.0
Net assets 15.5 6.5
Purchase price 15.5
Cash and cash equivalents of acquired
company 2.6
Effect on cash flow 12.9
Acquisition Ownership Domicile
date share, %
OOO MPZ CampoMos 15.10.2008 100 Russia
Subsidiaries:
OOO CampoFerma 100 Russia
OOO CampoFoods St. Petersburg 100 Russia
OOO CampoFoods Moscow 100 Russia
Atria expanded its operations in Russia by acquiring the meat processing company
OOO MPZ CampoMos operating in the Moscow and St Petersburg regions. The main
products of Campomos include meat products and pizzas. It is also planning to
add consumer-packed meat to its product portfolio. Campomos has a production
plant and logistics centre in Moscow and a distribution terminal in St
Petersburg. In addition, it boasts a new pork breeding facility with 2,500 sows.
The main market of Campomos is Moscow, but it is also well-established in St
Petersburg and some other major cities. In 2007,Campomos reported net sales of
around EUR 75 million. After the positive development of earnings in the early
2000s, the company's performance has ebbed and it has been in the red in recent
years. The company's production equipment is modern and well maintained.
Through the acquisition of Campomos, Atria will obtain a significant share of
modern retail trade in the Moscow region and strengthen its market leadership in
St Petersburg. Founded in 1989, Campomos employs some 1,000 staff. More than
half of its sales are generated in the Moscow region and the rest in St
Petersburg and other major cities. Campomos was the subsidiary of Campofrio
Alimentacion S.A., a Spanish publicly quoted company. It was the first meat
processing company established in Russia.
The company's main brand is KampoMos, which is widely known in Russia. The
KampoMos frankfurters, in particular, are a well-known product. The company also
offers a variety of premium-class meat products. In recent years, Campomos has
diversified into convenience foods and service desk products.
A customer base of over 17 million people in the Moscow region and the rapid
growth of modern retail trade combined with the well-known, high-quality
products of Campomos and its excellent position in modern retail trade will help
Atria establish a firm foothold in the rapidly growing Moscow market.
Acquiree's
Fair current value book value
Property, plant and
equipment 44.0 44.0
Goodwill 0.3 1.3
Other intangible assets 2.4 1.9
Inventories 13.6 13.6
Trade receivables 15.4 15.4
Other receivables 15.9 15.9
Cash and cash equivalents 1.0 1.0
Total assets 92.6 93.1
Deferred tax liabilities 1.0 0.6
Interest-bearing financial liabilities 51.7 51.7
Other liabilities 33.6 33.6
Total liabilities 86.3 85.9
Net assets 6.3 7.2
Purchase price 6.3
Cash and cash equivalents of acquired 1.0
Effect on cash flow 5.3
CONTINGENT LIABILITIES
mill. EUR 31.12.08 31.12.07
Debts with mortgages or other collateral
given as security
Loans from financial institutions 9.6 13.5
Pension fund loans 3.9 4.6
Total 13.5 18.1
Mortgages and other securities given as
comprehensive security
Real estate mortgages 6.7 22.0
Corporate mortgages 7.9 2.2
Total 14.6 24.2
Guarantee engagements not included
in the balance sheet
Guarantees 0.9 0.9
The figures of the financial statement release are unaudited.
ATRIA PLC
Board of Directors
For further information, please contact Matti Tikkakoski, President and CEO,
tel. +358 50 2582.
DISTRIBUTION
Nasdaq OMX Helsinki Ltd
Principal media
www.atria.fi
The financial statements will be mailed to you upon request and are also
available on our website at www.atria.fi/konserni.
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