2017-02-14 07:00:02 CET
2017-02-14 07:00:02 CET
REGULATED INFORMATION
Atria Oyj - Financial Statement Release
Atria Plc's financial statement release 1 January - 31 December 2016
Atria executes a strategy of Healthy Growth - investments, acquisitions and new
market areas
Seinäjoki, Finland, 2017-02-14 07:00 CET (GLOBE NEWSWIRE) -- Atria Plc,
Financial Statement Release, 14 February 2017, at 8.00 am
ATRIA PLC’S FINANCIAL STATEMENT RELEASE 1 JANUARY – 31 DECEMBER 2016
Atria executes a strategy of Healthy Growth - investments, acquisitions and new
market areas
October–December 2016
- Consolidated net sales totalled EUR 356.8 million (EUR 351.0 million).
- Consolidated EBIT was EUR 10.8 million (EUR 4.8 million), or 3.0% (1.4%) of
net sales.
- Adjusted EBIT was EUR 10.8 million (EUR 13.8 million).
- Atria Finland received official confirmation that it had obtained a permit to
export pork to China
- Atria acquired a majority stake in Well-Beef Kaunismaa Ltd; the transaction
was realised on 3 October 2016. Annual net sales are expected to grow by about
EUR 40 million.
January-December 2016
- Consolidated net sales totalled EUR 1,351.8 million (EUR 1,340.2 million).
- Consolidated EBIT was EUR 31.8 million (EUR 28.9 million), or 2.3% (2.2%) of
net sales.
- Adjusted EBIT was EUR 31.4 million (EUR 36.1 million).
- The business operations of the Lagerbergs poultry company were transferred to
Atria as of the beginning of May. Annual net sales are expected to grow by
about EUR 30 million. In June, Atria decided to invest EUR 14 million in the
poultry operations in Sweden.
- EBIT growth was slowed by decreased sales prices, the costs of starting up
the pig cutting plant and the costs incurred in taking over new businesses.
- The Board of Directors proposes that a dividend of EUR 0.46 be paid for each
share for the financial year 2016.
Q4 Q4 Q1–Q4 Q1–Q4
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EUR million 2016 2015 2016 2015
---------------------------------------------------------------
Net sales
Atria Finland 246.6 248.0 932.3 929.0
Atria Scandinavia 88.3 83.8 343.4 330.5
Atria Russia 21.1 18.6 71.8 75.1
Atria Baltic 8.8 8.0 34.4 32.9
Eliminations -8.0 -7.4 -30.1 -27.4
Total net sales 356.8 351.0 1,351.8 1,340.2
EBIT
Atria Finland 10.8 13.7 24.2 29.8
Atria Scandinavia 0.7 3.2 8.4 12.8
Atria Russia -0.6 -0.4 -0.7 -0.2
Atria Baltic 0.6 -9.1 0.7 -9.0
Unallocated -0.8 -2.6 -0.8 -4.4
EBIT, total 10.8 4.8 31.8 28.9
EBIT% 3.0 % 1.4 % 2.3 % 2.2 %
Profit before taxes 9.8 2.8 26.1 20.1
Earnings per share, EUR 0.22 0.11 0.65 0.49
Non-recurring items
included in the EBIT:
Goodwill impairment - -9.1 - -9.1
Sale of pig farms - - -1.0 1.9
Sale of the real estate company - - 1.4 -
Adjusted EBIT 10.8 13.8 31.4 36.1
Juha Gröhn, CEO
"In 2016, the emphasis of the competition in the food industry was on price,
and we expect the price competition to continue tough also in the near future.
There is unused capacity in the industry, and meat raw materials are abundantly
available in Europe for the present.
Atria's Healthy Growth strategy calls for active measures in product
development, in the strengthening of brands and in finding new markets.
Acquisitions are also an important part of growth. We have proceeded well in
all of these areas and achieved results.
Atria's strategy is operationalised in seven focus areas, one of which is the
efficient use of resources. We improve our efficiency in the use of raw and
other materials, in energy production and utilisation, and in work
productivity. The development combines both responsibility and financial
viewpoints.
Atria made two acquisitions in 2016. With the acquisition of the Lagerbergs
poultry company, we entered the Swedish poultry market, and the acquisition of
Well-Beef Ltd introduced new products into our already strong beef offering.
We explore new market areas with determination. Atria's Nurmo plant obtained a
permit to export pork to China at the end of 2016, and the first deliveries
will be dispatched in May 2017. The goal is for China to become a solid market
place for Atria in the coming years.
Continuous development of productivity is imperative. The investment in the new
pig cutting plant advanced into implementation in the spring of 2016. The
implementation increased cost levels momentarily, but towards the end of the
year performance levels rose, and positive development continues.”
October–December 2016
Atria Group’s net sales for October-December totalled EUR 356.8 million (EUR
351.0 million). EBIT amounted to EUR 10.8 million (EUR 4.8 million). EBIT for
the comparable period includes a goodwill impairment loss of EUR 9.1 million in
Atria Baltic. The increase in net sales resulted from acquisitions realised in
Finland and Sweden, Atria Russia's growing sales to retail and Atria Baltic's
good sales. Tight competition and low sales prices across all accounts reduced
Atria Finland's net sales.
The acquisition agreement between Atria and Well-Beef Kaunismaa (Kaivon Liha)
was confirmed in the beginning of October. Atria acquired 70 percent of
Well-Beef Kaunismaa's stock. The transaction price was EUR 15.3 million.
Well-Beef Kaunismaa's business focuses on beef processing and wholesaling. The
company's customers are mainly fast-food chains and other Food Service
customers. Well-Beef Kaunismaa holds a strong position in the Finnish market as
a manufacturer of high-quality hamburger patties and kebab products. The
company's annual net sales amount to around EUR 40 million. Well-Beef Kaunismaa
has a production plant in Turku with approximately 50 employees.
In October, Atria Finland received official confirmation that it had obtained a
permit to export pork to China. Initiating exports to China is a major step in
the development and expansion of Atria's businesses. The export operations will
start in the beginning of May. The effect on Atria's net sales of exporting to
China will become more apparent when commercial operations begin.
MSc (Econ.) Pasi Luostarinen was appointed Atria Group's Executive Vice
President, Marketing and Market Insight and member of Atria Group's management
team as of 1 December 2016. He has earlier worked as Senior Vice President,
Marketing and Product Development at Atria Finland.
Atria Finland's net sales for October–December totalled EUR 246.6 million (EUR
248.0 million). EBIT amounted to EUR 10.8 million (EUR 13.7 million). The
operations of Well-Beef Kaunismaa were consolidated into Atria as of the
beginning of October. Atria did not take part in the intensified price
competition in the retail and Food Service markets and, as a result, sales
volumes decreased in comparison with the comparable period of last year. The
decrease in sales volumes and the low price levels depressed EBIT. The
commissioning of the new pig cutting plant continued.
Atria Scandinavia’s net sales for October-December quarter totalled EUR 88.3
million (EUR 83.8 million). EBIT amounted to EUR 0.7 million (EUR 3.2 million).
The increase in net sales was mainly due to the acquired poultry company. The
decline in EBIT was due to the higher raw material price level compared to the
comparable period and the unfavorable sales mix. EBIT includes costs incurred
in the reorganisations of operations.
Atria Russia’s net sales for October-December quarter amounted to EUR 21.1
million (EUR 18.6 million). In the local currency, net sales grew by 8.3 per
cent. EBIT was EUR -0.6 million (EUR -0.4 million). The increase in net sales
was due to increased sales to retail; the Christmas and New Year season sale
was a success. Furthermore, the strong sales of Sibylla products continued
until the end of the year. In the review period, the result was brought down by
an increase in meat raw material costs and marketing costs.
Atria Baltic’s net sales for October-December amounted to EUR 8.8 million (EUR
8.0 million). EBIT was EUR 0.6 million (EUR -9.1 million). EBIT for the
comparable period includes a goodwill impairment loss of EUR 9.1 million. Sales
volumes were good. Sales of new minced meat products increased net sales.
January–December 2016
Atria Group's net sales for January–December totalled EUR 1,351.8 million (EUR
1,340.2 million). EBIT amounted to EUR 31.8 million (EUR 28.9 million).
Adjusted EBIT was EUR 31.4 million (EUR 36.1 million). Adjusted EBIT growth was
slowed down by low sales volumes and prices, as well as by the costs of ramping
up the pig cutting plant and those related to acquisitions.
Once completed, Atria Finland's new pig cutting plant will be one of Europe's
most modern cutting plants. Thanks to the new technology in the pig cutting
plant, meat will become traceable all the way back to the farm in even smaller
batches. The cutting plant's productivity and competitiveness will increase
considerably. The commissioning of the first phase of the cutting plant started
in 2016. The entire project will be complete in 2017. The value of the
investment is approximately EUR 36 million, and it is expected to generate
annual cost savings of some EUR 8 million in the plant’s operations. These
savings will be realised in full as of the beginning of 2018. Employer-employee
negotiations concerning the project have been concluded. Staffing was reduced
by 80 person-years in the cutting plant.
In April, the Swedish Competition Authority and Consumer Agency unconditionally
approved Atria's acquisition of the entire share capital of Lagerberg i Norjeby
AB (Lagerbergs), a Swedish poultry company. The agreement between Atria and
Lagerbergs was confirmed at the end of April and the business operations were
transferred to Atria as of the start of May. The purchase price was EUR 18.7
million, and it was paid in cash. Atria's annual net sales are expected to grow
by about EUR 30 million. The transaction expands Atria's business in Sweden
into the poultry business.
In June, Atria’s Board of Directors approved a long-term investment programme
worth EUR 14 million for the development of the poultry business in Sweden. The
investments will be devoted to improving the entire production chain, from
chicken rearing and industrial production to product marketing. The investments
will take place in the period from 2016 to 2018.
Atria centralised its logistics operations in Sweden by moving them from
Gothenburg to the Malmö plant. The logistics centre in Gothenburg was sold for
a profit of EUR 1.4 million.
Atria sold the Linnamäe pig farm located in Northern Estonia. The sale of the
Linnamäe pig farm gave rise to a sales loss of approximately EUR 1 million. The
pig farm was transferred into new ownership as of 29 April 2016.
Atria centralised its industrial operations in Estonia at the Valga factory.
Production of meat products was transferred from the Vastse-Kuuste factory to
Valga and the real estate was sold. The sale had no impact on the company’s
results. Production rearrangements were concluded by the end of the second
quarter. The measures are expected to generate annual savings of approximately
EUR 0.5 million.
Atria Finland’s net sales for January-December amounted to EUR 932.3 million
(EUR 929.0 million). Increased sales volumes at the beginning of the year
enabled net sales to grow. At the end of the year, growth slowed down due to
tight price competition and decreased sales prices. EBIT amounted to EUR 24.2
million (EUR 29.8 million). Low sales prices and the costs of the transitional
phase related to commissioning the new pig cutting plant had a negative effect
on EBIT.
Atria Scandinavia’s net sales for January-December amounted to EUR 343.4
million (EUR 330.5 million). EBIT amounted to EUR 8.4 million (EUR 12.8
million). Adjusted EBIT was EUR 7.0 million (EUR 12.8 million). The increase in
net sales was mainly due to the poultry business acquired in April 2016. EBIT
was weighed down by increases in raw material costs, effects of the sales
structure and the costs incurred in taking over the poultry operations.
Atria Russia’s net sales for January-December amounted to EUR 71.8 million (EUR
75.1 million). In the local currency, net sales grew by 4.2 percent. EBIT was
EUR -0.7 million (EUR -0.2 million). Adjusted EBIT was EUR -0.7 million (EUR
-2.1 million). Adjusted EBIT was boosted by increased sales of Sibylla products
and sales to retail, especially in the latter half of the year. In 2016, sales
of the Sibylla concept continued to grow. The number of outlets is now over
2,800.
Atria Baltic’s net sales for January-December amounted to EUR 34.4 million (EUR
32.9 million). EBIT was EUR 0.7 million (EUR -9.0 million). Adjusted EBIT was
EUR 1.7 million (EUR 0.1 million). EBIT for the comparable period includes a
goodwill impairment loss of EUR 9.1 million. Atria's sales to retail increased
in the first half of the year. The launching of new types of minced meat
products in January increased sales and improved market share in retail. EBIT
improved thanks to the productivity and cost efficiency of operations.
Key indicators
EUR million 31.12.16 31.12.15
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Shareholders´ equity per share EUR 14.49 14.16
Interest-bearing liabilities 217.8 199.6
Equity ratio, % 46.5 % 47.4 %
Net gearing, % 50.5 % 48.3 %
Gross investments in fixed assets 82.9 56.9
% of net sales 6.1 % 4.2 %
Average FTE 4,315 4,271
Calculation of key figures are presented in the 2015 financial statements
release.
Outlook for the future
Consolidated EBIT was EUR 31.8 million in 2016. In 2017, EBIT is expected to be
better than in 2016. In 2017, net sales are expected to grow.
Board of Directors' proposal for profit distribution
The Board of Directors proposes that a dividend of EUR 0.46 be paid for each
share for the financial year 2016.
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 2016 as an attachment to this
company announcement. The full release is available on the company’s website at
www.atria.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,14 February 2017, at 9:45 am
at Atria Plc’s Helsinki office, Läkkisepäntie 23, Helsinki. The presentation
material will be available on the company’s website (www.atria.com) after the
publication of the financial statements and as an attachment to this company
announcement.
ATRIA PLC
Boad of Directors
DISTRIBUTION
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