2015-10-29 07:00:00 CET
2015-10-29 07:00:06 CET
REGLERAD INFORMATION
Atria Oyj - Interim report (Q1 and Q3)
Interim report of Atria Plc 1 January - 30 September 2015
Atria Group's comparable EBIT at the previous year's level
Seinäjoki, Finland, 2015-10-29 07:00 CET (GLOBE NEWSWIRE) -- Atria Plc, Interim
Report, 29 October 2015 at 8.00 am
INTERIM REPORT OF ATRIA PLC 1 JANUARY-30 SEPTEMBER 2015
Atria Group's comparable EBIT at the previous year's level
July-September 2015
- Consolidated net sales fell by 7.5% to EUR 337.1 million (EUR 364.4 million).
At comparable exchange rates, the decline was 4.6%.
- Consolidated EBIT was EUR 15.1 million (EUR 16.2 million), or 4.5% (4.4%) of
net sales. EBIT for the comparative period includes EUR 0.6 million of
non-recurring income.
- The investment in the pig cutting plant in Nurmo is progressing according to
plan.
- Atria Finland to improve the Sahalahti poultry unit's productivity.
- Atria to increase efficiency in sales, marketing and logistics in Sweden
- Net liabilities declined, and net gearing was 55.8% (31 December 2014: 61.8%).
January-September 2015
- Consolidated net sales fell by 6.9% to EUR 989.2 million (EUR 1,062.7
million). At comparable exchange
rates, the decline was 4.3%.
- Consolidated EBIT was EUR 24.2 million (EUR 22.0 million), or 2.4% (2.1%) of
net sales. BIT includes a total of EUR +1.9 million (EUR -0.6 million) of
non-recurring items.
- Atria initiated an investment of EUR 36 million in the modernisation of the
pig cutting plant in Nurmo.
- 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.
Q3 Q3 Q1-Q3 Q1-Q3
--------------------------------------
EUR million 2015 2014 2015 2014 2014
--------------------------------------
--------------------------------------
Group 337.1 364.4 989.2 1,062.7 1,426.1
Net sales
EBIT 15.1 16.2 24.2 22.0 40.6
EBIT, % 4.5% 4.4% 2.4% 2.1% 2.8%
Profit before taxes 13.0 13.6 17.3 17.7 34.0
Earnings per share, EUR 0.27 0.35 0.38 0.45 0.93
Non-recurring items* - 0.6 1.9 -0.6 1.0
Net sales by segment
Atria Finland 235.1 238.5 681.0 701.9 945.5
Atria Scandinavia 81.3 93.3 246.7 277.0 371.9
Atria Russia 19.1 29.2 56.5 76.5 98.8
Atria Baltic 8.4 9.0 24.9 26.0 34.5
EBIT by segment
Atria Finland 9.5 11.8 16.1 18.0 33.6
Atria Scandinavia 5.2 5.9 9.6 10.2 14.9
Atria Russia 0.5 -1.5 0.2 -4.8 -5.7
Atria Baltic 0.0 0.1 0.1 -0.2 -0.0
*Non-recurring items are included in the
reported figures
July-September 2015
Atria Group's net sales for July-September totalled EUR 337.1 million (EUR
364.4 million). Net sales fell by EUR 27.3 million year-on-year. This decrease
was partly due to the sale of the Falbygdens cheese business and the weakening
of the rouble. Additionally, net sales were brought down by lower-than-usual
sales during the barbecue season and intense competition. EBIT amounted to EUR
15.1 million (EUR 16.2 million). Comparable EBIT was roughly the same as in the
corresponding period last year, EUR 15.1 million (EUR 15.6 million).
At the beginning of September, Atria Finland launched a project to improve the
productivity of chicken production at the Sahalahti plant. The project will
identify overlaps in Atria's current operations and the areas in need of
improvement at the plant. Atria estimates that removing overlapping functions
and improving efficiency will result in annual savings of about EUR 1.5
million, which will be realised as of 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
estimates that the reorganisation and improved efficiency will result in annual
savings of about EUR 1.8 million, most of which will be realized as of the
beginning of 2016.
Atria Finland's net sales for July-September totalled EUR 235.1 million (EUR
238.5 million), down by EUR 3.4 million year-on-year. EBIT amounted to EUR 9.5
million (EUR 11.8 million). EBIT for the comparative period includes EUR 0.6
million of non-recurring income. The decrease in net sales and profitability
was due to weaker consumer demand and tougher competition, which resulted in
lower sales prices. The sales of barbecue products were down from the year
before. Atria Finland's cost-efficiency has remained at a good level.
Atria Scandinavia's net sales for July-September totalled EUR 81.3 million (EUR
93.3 million) and EBIT was EUR 5.2 million (EUR 5.9 million). The decrease in
net sales and EBIT was due to the sale of the Falbygdens cheese business. The
consolidation of Aalbaek Specialiteter's operations into Atria has progressed
well.
Atria Russia's net sales for July-September totalled EUR 19.1 million (EUR 29.2
million). Net sales in euros fell mainly due to the weakening of the rouble.
Net sales in the local currency decreased by 4.2% year-on-year, mainly because
consumers shifted to lower-priced products. EBIT was EUR 0.5 million (EUR -1.5
million). EBIT improved due to price increases, the elimination of unprofitable
products, a successful summer season for the Sibylla business, and improved
cost-efficiency in general.
Atria Baltic's net sales for July-September amounted to EUR 8.4 million (EUR
9.0 million). EBIT was EUR 0.0 million (EUR 0.1 million). The sales of barbecue
products were lower than in the corresponding period last year due to the cold
and rainy weather. Authorities have imposed regional export and sales bans in
order to prevent the spread of African swine fever, which has reduced
profitability and made it more difficult to use local meat.
January-September 2015
Atria Group's net sales for January-September totalled EUR 989.2 million (EUR
1,062.7 million). Net sales fell by EUR 73.5 million year-on-year. This
decrease was due to the sale of the Falbygdens cheese business and the
weakening of the rouble over the comparative period. Additionally, net sales
were brought down by lower-than-usual sales of barbecue products and intense
competition. EBIT amounted to EUR 24.2 million (EUR 22.0 million), which
includes a total of EUR +1.9 million (EUR -0.6 million) of non-recurring items.
Comparable EBIT was EUR 22.3 million (EUR 22.6 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,
Finland. 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.
The Swedish Competition Authority approved the sale of Atria Scandinavia's
Falbygdens cheese business to Arla on 11 March 2015. The selling 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 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
charcuterie 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.
Investments during the period under review totalled EUR 39.0 million (EUR 55.3
million). The Group's free cash flow for the period (operating cash flow - cash
flow from investments) was EUR 38.2 million (EUR -5.4 million) and net
liabilities were EUR 224.3 million (31 December 2014: EUR 250.7 million).
Atria Finland's net sales for January-September totalled EUR 681.0 million (EUR
701.9 million), down by EUR 20.9 million year-on-year. This decline was due to
weaker consumer demand and tougher price competition. The sales of barbecue
products were down from the year before. EBIT amounted to EUR 16.1 million (EUR
18.0 million). EBIT for the comparative period included EUR -0.2 million of
non-recurring items. EBIT was brought down by a decrease in sales prices, which
was due to the oversupply of meat in the international market and intense price
competition. Atria Finland's cost-efficiency has remained at a good level.
Atria Scandinavia's net sales for January-September totalled EUR 246.7 million
(EUR 277.0 million). This decrease was due to the sale of the Falbygdens cheese
business, completed on 1 April 2015. EBIT for January-September was EUR 9.6
million (EUR 10.2 million). The consolidation of Aalbaek Specialiteter's
operations into Atria has progressed well.
Atria Russia's net sales for January-September totalled EUR 56.5 million (EUR
76.5 million). Net sales in euros fell due to the weakening of the rouble. Net
sales in the local currency grew by 2.3% year-on-year. EBIT was EUR 0.2 million
(EUR -4.8 million), which includes a total of EUR +1.9 million of non-recurring
items. Comparable EBIT came to EUR -1.7 million (EUR -4.8 million). The
positive performance was due to increases in sales prices and better
cost-efficiency. Atria has implemented all the planned structural reforms,
which have had a positive impact on the EBIT. Meanwhile, EBIT was brought down
by an increase in raw material prices and lower consumer demand.
Atria Baltic's net sales for January-September totalled EUR 24.9 million (EUR
26.0 million). EBIT for January-September was EUR 0.1 million (EUR -0.2
million). EBIT for the comparative period includes EUR 0.4 million of
non-recurring costs. Prolonged oversupply in the international meat market and
fierce price competition in the retail market have brought down meat prices.
The sales of barbecue products were lower than in the corresponding period last
year due to the cold and rainy weather. In late summer, authorities imposed
regional export and sales bans in order to prevent the spread of African swine
fever, which reduces profitability and makes it more difficult to use local
meat.
Key indicators
EUR million 30.9.15 30.9.14 31.12.14
-------------------------------------------------------------
Equity/share, EUR 14.07 14.38 14.22
Interest-bearing liabilities 225.5 314.9 254.1
Equity ratio, % 46.0 42.1 44.0
Gearing, % 56.1 76.8 62.6
Net gearing, % 55.8 75.9 61.8
Gross investments in fixed assets 39.0 55.3 62.7
Gross investments, % of net sales 3.9 5.2 4.4
Average FTE 4,304 4,773 4,715
Outlook for the future
In 2014, consolidated EBIT without non-recurring items was EUR 39.6 million. In
2015, EBIT is projected to be roughly the same and net sales are expected to
decrease.
Publication procedure
Atria Plc complies with the publication procedure in accordance with standard
5.2b of the Financial Supervisory Authority and publishes its 1 JANUARY - 30
SEPTEMBER 2015 interim report release as an attachment to this company
announcement. The full interim report is available on the company's website at
www.atriagroup.com.
For more information, please contact Juha Gröhn, CEO, Atria Plc, tel. +358 400
684 224.
Invitation to a press conference
A press conference conducted in Finnish will be arranged today 29 October 2015
at 9:30 am at Atria offices in Helsinki, address Läkkisepäntie 23, Helsinki.
The presentation material will be available on the company's website
(www.atriagroup.com/en/investors/FinancialInformation/quarterlyreports) after
the distribution of the interim report and as an attachment to this company
announcement.
ATRIA PLC
Board of Directors
DISTRIBUTION
Nasdaq OMX Helsinki Ltd
Major media
www.atriagroup.com
© 2024 Nasdaq, Inc. All Rights Reserved |