Atria Plc, interim report, 24 April 2025, 8.00 am
Interim report of Atria Plc, 1 January-31 March 2025
Atria has a good quarter in a challenging market situation
January-March 2025
· The Group's net sales increased to EUR 420.5 million (EUR 416.8 million).
Atria Sweden's net sales grew by EUR 6.8 million year-on-year. Atria Finland's
net sales was EUR 2.1 million lower than in the comparison period. The weak
market development of the product categories that Atria supplies in the Finnish
retail trade weighed on Atria's net sales.
· The Group's consolidated EBIT amounted to EUR 12.8 million (EUR 8.0
million), or 3.1% (1.9%) of net sales.
· All business areas improved their EBIT.
· Atria Finland's EBIT was EUR 11.2 million, up by EUR 4.0 million year-on
-year. The good performance is a result of the intensification of poultry
production and the concentration of production in the new poultry plant in
Nurmo. The export of chicken meat to China, which started in December, also
improved the EBIT.
· Atria Sweden's EBIT was higher than in the corresponding period of the
previous year thanks to successful sales to retail and Foodservice customers,
and the integration of the Gooh! convenience food business with Atria in May
2024.
· In the Atria Denmark & Estonia business area, both countries improved their
result.
· Atria Finland launched the planning of an investment programme to modernise
convenience food production and energy management at the Nurmo plant. The total
cost of the project is estimated to be approximately EUR 60-90 million. The
planned investment programme is in line with Atria's strategy to invest in
convenience food and be a leader in sustainable food production. A modernised
convenience food factory would enable a completely new kind of carbon neutral
food production.
· The Group's free cash flow during the reporting period was EUR 11.7 million
(EUR -28.1 million).
· The adjusted return on equity (rolling 12 months) was 11.2 percent (6.7%).
· The preparation of Atria's Group strategy has proceeded as planned. The new
strategy will be published at the end of the year.
After the review period
· The strike of the Finnish Food Workers' Union from 8 to 10 April 2025
stopped deliveries of goods from the Nurmo plant, with the exception of poultry
products. The strike also had a negative impact on deliveries during the Easter
season.
· Atria Finland invests approximately EUR 7 million in a new pancake
production line and the technical modernisation of the production department.
Q1 Q1
EUR million 2025 2024 2024
Net sales
Atria Finland 307.7 309.8 1,295.6
Atria Sweden 88.9 82.1 360.2
Atria Denmark & Estonia 29.8 30.7 125.9
Eliminations -6.0 -5.8 -26.3
Net sales, total 420.5 416.8 1,755.4
EBIT before items
affecting comparability
Atria Finland 11.2 7.2 60.4
Atria Sweden 0.7 0.0 4.5
Atria Denmark & Estonia 1.8 1.4 5.3
Unallocated -0.9 -0.6 -4.8
Adjusted EBIT 12.8 8.0 65.4
Adjusted EBIT, % 3.1 % 1.9 % 3.7 %
Items affecting
comparability of EBIT:
Atria Finland
Poultry business reorganization costs 1.0
EBIT 12.8 8.0 66.4
EBIT, % 3.1 % 1.9 % 3.8 %
Profit before taxes 10.1 3.9 52.1
Earnings per share, EUR 0.28 0.10 1.41
Adjusted earnings per share, EUR 0.28 0.10 1.38
CEO, Kai Gyllström
“Atria Group's EBIT for the first quarter was EUR 12.8 million, marking an
improvement of EUR 4.8 million on the corresponding period of the previous year.
Net sales was also growing slightly. All business areas improved their result on
the corresponding period last year. In particular, Atria Finland performed
well.
The market for Atria's product categories in the Finnish retail trade was
challenging in January-March. The market fell by 3.5% in value. There are many
reasons for the subdued market, including difficulties in the beef supply, the
impact of nutritional recommendations and the general economic uncertainty on
consumers, and the fact that Easter was in the second quarter this year.
However, Atria Finland was able to strengthen its market position in the
declining retail market. The improved efficiency of poultry production and the
concentration of production in the new poultry plant in Nurmo improved the
result. The Sahalahti poultry plant was closed in April 2024. The export of
chicken to China, which started in December, also improved the EBIT.
Atria Sweden's EBIT and net sales was better than in the comparison period. A
significant reason for the positive development is the purchase of the Gooh!
convenience food business in May last year. Good sales to Foodservice and retail
customers also increased both net sales and the EBIT. In Sweden, the situation
in the food market is slightly better than in Finland because the markets for
fresh poultry products and convenience food have been growing. Atria has been
able to maintain its market position, which is reflected in the good development
of Atria Sweden during the review period.
Profit development in the Denmark & Estonia business area was positive. Atria
Estonia's retail trade increased, and market shares strengthened in the growing
market. Atria Estonia's result improved as a result of increased sales volumes.
Atria Denmark's first quarter was subdued due to weaker sales volumes to retail
and Foodservice customers. Export business developed positively thanks to
strengthened UK exports. A new modern production process for whole meat cold
cuts was introduced during the review period.
In Finland, we are planning a significant investment related to the production
of convenience food for the Nurmo production plant. The investments included in
the plan would modernise Atria's convenience food production in Nurmo and make
it more energy efficient. Our goal is to create a model for the carbon neutral
plant concept of the future. We have applied for Business Finland's investment
aid for clean transition for the project. We have also launched a separate
planning process for the expansion of convenience food production and the
construction of a production facility for new types of convenience food. If both
projects are realised, we have estimated the total cost to be around EUR 60-90
million. Decisions on programme content and the final cost estimate, as well as
the other financial impacts of the programme, will be determined as the final
result of the planning by the end of 2025.
After the review period, at the beginning of April, there was a three-day strike
of the Finnish Food Workers' Union at Atria's Nurmo and Forssa plants. This
strike will have a negative impact on Atria's full-year net sales and EBIT. The
strike just before the Easter period weakened our ability to handle Easter food
deliveries to both retail and our Foodservice customers. We have a backlog in
pig slaughtering, and it could take months to clear it, and for the situation to
normalise.
In April, after the review period, we made the decision to invest approximately
EUR 7 million in a new pancake production line and the technical modernisation
of the production department. With this investment, we are strengthening our
position and competitiveness in the growing product category of convenience
food. We are looking for growth both in Finland and in exports. The new
production line enables the development of new types of products.”
January-March 2025
Atria Group's net sales in January-March were EUR 420.5 million (EUR 416.8
million). The consolidated EBIT was EUR 12.8 million (EUR 8.0 million), or 3.1%
(1.9%) of net sales.
Atria Sweden's net sales grew by EUR 6.8 million year-on-year. Atria Finland's
net sales was EUR 2.1 million lower than in the comparison period. The weak
market development of Atria's product categories in the Finnish retail trade
weighed on Atria's sales. Atria Denmark & Estonia's net sales was EUR 0.9
million weaker than in the corresponding period in the previous year.
Atria Finland's EBIT was EUR 11.2 million, up by EUR 4.0 million year-on-year.
The good performance is a result of the intensification of poultry production
and the concentration of production in the new poultry plant in Nurmo. The
export of chicken meat to China, which started in December, also improved the
EBIT. Energy costs were lower than in the comparison period. Atria Sweden's EBIT
was higher than in the corresponding period in the previous year thanks to the
integration of the Gooh! convenience foods business and the successful sales to
retail and Foodservice customers. Atria Denmark & Estonia's EBIT improved
compared to the corresponding period last year.
Atria Finland launched the planning of an investment programme to modernise
convenience food production and energy management at the Nurmo plant. The
investments included in the plan would modernise Atria's convenience food
production in Nurmo and make it more energy efficient. The aim is to create a
model for a carbon neutral plant concept of the future. We have applied for
Business Finland's investment aid for clean transition for the project. At the
same time, a separate planning process has been launched for the expansion of
convenience food production and a production facility for new types of
convenience food. If both projects are realised, the total cost is estimated to
be around EUR 60-90 million. Decisions on programme content and the final cost
estimate, as well as the other financial impacts of the programme, will be
determined as the final result of the planning by the end of 2025.
The preparation of Atria Group's business strategy, launched at the end of 2024,
has proceeded as planned, and the new strategy will be published at the end of
2025.
Atria Finland's net sales for January-March were EUR 307.7 million (EUR 309.8
million). The weak market development in the product categories supplied by
Atria in retail trade weighed on Atria's net sales. In addition, lower net sales
was due to Easter sales being included in the January-March net sales in the
comparison period. This year, Easter is in the second quarter. The net sales of
the feed business was lower than in the previous year due to lower sales prices.
Atria's sales to Foodservice customers were lower than in the previous year. Net
sales of exports and to industrial customers improved from the previous year.
EBIT totalled EUR 11.2 million (EUR 7.2 million). It was EUR 4.0 million higher
than in the corresponding period last year. The good performance is a result of
the intensification of poultry production and the concentration of production in
the new poultry plant in Nurmo. The Sahalahti plant was still in operation in
the comparison period. The export of chicken to China, which started in
December, also improved the EBIT. Energy costs were lower than in the comparison
period.
Atria Sweden's net sales for January-March were EUR 88.9 million (EUR 82.1
million). Net sales grew by EUR 6.8 million year-on-year. Sales to retail and
Foodservice customers increased during the review period. The acquisition of the
Gooh! convenience food business in May last year boosted Atria Sweden's net
sales during the review period. EBIT totalled EUR 0.7 million (EUR 0.0 million).
The increase in sales improved the EBIT. The Swedish krona strengthened during
the review period, which also had a positive impact on Atria Sweden's result. In
Sweden, the market for Atria's product categories was growing during the review
period. The retail market grew by almost 5%, and the Foodservice market by about
4%. In particular, the market for fresh poultry products has shown strong
growth. Atria has maintained its market share in the growing retail market and
has grown faster than the market in the Foodservice market. This was reflected
in the growth of Atria Sweden's net sales and EBIT during the review period.
Atria Denmark & Estonia's net sales in January-March were EUR 29.8 million (EUR
30.7 million). EBIT totalled EUR 1.8 million (EUR 1.4 million). Atria Estonia's
retail sales increased and market shares strengthened. Atria Estonia's result
improved thanks to increased sales volumes and lower costs than in the previous
year. Atria Denmark's first quarter was subdued due to weaker sales volumes to
retail and Foodservice customers. Export business developed positively thanks to
strengthened UK exports. In addition, a renewed production process for whole
meat cold cuts was introduced during the review period. The revamp improves the
profitability of the production process and expands the product range for retail
trade. In Estonia, the market for product categories supplied by Atria grew in
January-February by an average of 2.5% in value and 1.2% in volume. Atria
strengthened its total market share in the product categories it supplies in the
Estonian retail trade in January-February. The market share of Atria's own
brands was about 22%. The greatest increases occurred in the sales of ham
products, fresh meat and minced meat. Atria lost some of its market share in
brand products in Denmark during the review period. The Danish market for cold
cuts has been subdued, and Atria's market share has decreased in the weakened
market. Price-driven campaigns are becoming increasingly common in cold cuts
marketing in the retail trade.
Group key indicators
Q1 Q1
EUR million 2025 2024 2024
Net sales 420.5 416.8 1755.4
Adjusted EBIT 12.8 8.0 65.4
Adjusted EBIT, % 3.1 % 1.9 % 3.7 %
EBIT 12.8 8.0 66.4
EBIT, % 3.1 % 1.9 % 3.8 %
EPS, EUR 0.28 0.10 1.41
Adjusted EPS, EUR 0.28 0.10 1.38
Shareholders´ equity per share EUR 14.64 13.64 14.28
Equity ratio, % 42.8 % 40.8 % 43.2 %
Adjusted return on equity (rolling 12m), % 11.2 % 6.7 % 10.2 %
Adjusted return on investment (rolling 12m), % 10.7 % 7.1 % 10.1 %
Sustainability: aiming for a carbon neutral food chain
On 7 March 2025, Atria published its first sustainability report in accordance
with the Corporate Sustainability Reporting Directive (CSRD) as part of the
Board of Directors' report. The report is published on Atria's website at:
https://www.atria.com/en/investors/financial-information/annual-reports/
A carbon neutral food chain is the most important goal of Atria's sustainability
work. Atria's emissions reduction targets have been officially approved by the
Science Based Targets (SBTi) initiative. The targets are based on the Paris
Climate Agreement and aim to limit global warming to 1.5 degrees Celsius
globally. In the targets approved by SBTi, Atria commits to reducing greenhouse
gas emissions from its own operations (Scopes 1 and 2) by 42% by 2030 from 2020
levels. The reduction target for Scope 3 emissions is 20% per tonne of processed
meat by 2030.
Consumers see Atria as a sustainable brand
The Sustainable Brand Index is Europe's largest sustainability-focused brand
survey that measures consumer perceptions of brand sustainability. Finnish
consumers' perception of the Atria brand improved by 15 places from 2024. The
Atria brand is ranked 13th in the food category. According to the same study,
Atria's Maks & Moorits meat product brand is the most sustainable meat product
brand in Estonia.
Atria participates in a wide-ranging study of climate impacts
The new study seeks a comprehensive understanding of the climate impacts of food
production and agriculture. The study, led by the University of Helsinki,
examines direct greenhouse gas emissions and aerosol particles that cool the
climate. The funding of Business Finland and partner companies for the project
is EUR 2 million. The Towards climate positive agriculture research project
(CARBON+) coordinated by the University of Helsinki aims to increase
understanding of how aerosol particles that affect the climate are formed in
agriculture. In a three-year project that began in January 2025, researchers are
working to identify the overall impact of various crops and livestock farming on
the climate.
Future outlook and guidance
Atria Group's adjusted EBIT in 2025 is expected to be lower than in the previous
year (EUR 65.4 million).
After the record year of financial performance, supported by the significant
efficiency and expansion investments in 2023-2024, Atria is also in a good
position to perform well in 2025. Atria's good market position, strong brands,
good customer relationships and reliable industrial processes provide good
conditions for business stability.
However, the global geopolitical situation, which continues to be volatile, and
its impact on consumer confidence and market growth weaken the outlook for 2025.
A possible increase in tariffs on food imports from Europe to China or an import
ban would have an impact on Atria's Finnish pork exports and the European pork
market. The strike of the Finnish Food Workers' Union in Finland in April
stopped deliveries from the Nurmo plant, with the exception of poultry products.
The strike will be reflected in Atria Finland's sales and result for the rest of
the year.
The Board of Directors' proposal for dividends in 2024
The Board of Directors proposes that a dividend of EUR 0.69 (EUR 0.60) be paid
for each share for the 2024 financial period.
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 March 2025 as an attachment to this stock
exchange release. The full release is available on the company's website at
www.atria.com.
Publication of the interim report
Atria Plc's CEO Kai Gyllström will present the company's interim report in a
webcast today, 24th of April 2025 at 10 am. The webcast is available on Atria's
website at www.atria.com/sijoittajat/ in Finnish language. During the webcast,
you can ask questions in writing via chat. The recording of the press conference
and the presentation material of the event will be available during the same day
at www.atria.com/sijoittajat/taloustieto/osavuosikatsaus/.
ATRIA PLC
Board of Directors
For more information, please contact: Kai Gyllström, CEO, Atria Plc. Contacts
and interview requests via Communications Manager Marja Latvatalo, e-mail:
marja.latvatalo@atria.com, tel. +358 400 777 874.
Distribution:
Nasdaq Helsinki Ltd
Major media
www.atria.com
The interim report is available on our website at www.atria.com.