Atria Plc, Half-year financial report, 17 July 2025, 1.00 pm
HALF-YEAR FINANCIAL REPORT OF ATRIA PLC, 1 JANUARY - 30 JUNE 2025
Good result for Atria in April-June despite difficult market conditions
April-June 2025
· The Group's net sales increased to EUR 459.8 million (EUR 454.3 million).
Atria Sweden's net sales grew by EUR 10.3 million from the corresponding period
last year. Atria Finland's net sales were EUR 6.0 million lower than in the
comparison period. The cool start to the summer put off the start of the
barbecue season and weakened the sales of seasonal products in all business
areas. In Finland, the deliveries for the Easter and May Day periods were not
made in full due to the Finnish Food Workers' Union's strike in April.
· The Group's consolidated EBIT amounted to EUR 17.6 million (EUR 18.4
million), or 3.8% (4.0%) of net sales.
· Atria Finland's EBIT was EUR 15.7 million, down by EUR 1.4 million from the
previous year. The decrease in net sales also reduced the EBIT for the
April-June period.
· Atria Sweden's EBIT was EUR 0.7 million 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.
· The EBIT of Atria Denmark and Estonia remained at the same level as in the
corresponding period last year. An African swine fever infection was detected on
an Atria pig farm in Estonia at the end of June. It is currently estimated that
the direct costs incurred by Atria will be minor, amounting to approximately EUR
0.6 million. The costs have been booked for the second quarter. The
investigation of any compensations is ongoing. As a risk management measure,
Atria Estonia has limited all movement between sites to a minimum. The farm is
undergoing thorough cleaning and disinfection under the supervision of the local
authorities. Production on the farm is expected to continue normally after a few
months.
· Atria Finland is investing approximately EUR 7 million in a new pancake
production line and the technical modernisation of the production department.
· Atria distributed a dividend of EUR 0.69 per share for the year 2024
(dividend EUR 0.30 per share and capital refund EUR 0.30 per share, total EUR
0.60 per share).
January-June 2025
· Consolidated net sales totalled EUR 880.3 million (EUR 871.2 million). Net
sales were higher than in the corresponding period of the previous year thanks
to Atria Sweden's good sales to retail trade and Foodservice customers. In other
business areas, net sales were lower than in the corresponding period of the
previous year.
· The Group's consolidated EBIT amounted to EUR 30.5 million
(EUR 26.4 million), or 3.5% (3.0%) of net sales.
· All business areas improved their EBIT.
· The improved efficiency of poultry production and its concentration in
Nurmo, as well as the start of chicken exports to China, strengthened Atria
Finland's EBIT.
· The Group's free cash flow during the reporting period was EUR 44.0 million
(EUR 1.9 million).
· The adjusted return on equity (rolling 12 months) was 11.1 per cent (8.5%).
After the review period
· After the review period, Atria announced a significant investment in
convenience food production at the Nurmo production plant. Atria is investing
EUR 82.4 million in the modernisation of convenience food production and the
related energy solutions. This includes the renovation of the existing
production plant and the replacement of the production process and other
technical systems with the most energy-efficient solutions. The plant's annual
energy consumption is expected to decrease by about 50,000 MWh, which is about
21 per cent of Atria Finland's energy consumption. In addition, heat production
is modified so as not to produce any carbon dioxide emissions. The renewed
production process enables the development of innovative products, improved
product quality and the utilisation of state-of-the-art technology in
convenience food production. The energy solutions included in this investment
will result in total annual savings of more than EUR 5 million. Business Finland
has granted EUR 24.7 million in clean transition investment support to the
project. The project will create a model for a carbon-neutral plant concept of
the future.
· Jaana Viertola-Truini, a member of the Board of Directors of Atria Plc,
resigned from the Board due to her other work commitments. Atria's Board of
Directors will continue for the time being with eight Board members.
· Kati Janhunen, MSc (Econ.), was appointed as Atria Group's EVP,
Sustainability, and a member of the Group Management Team. She will take up her
duties no later than 1 June 2026 - the current EVP for Sustainability Merja
Leino will retire.
Q2 Q2 H1 H1
EUR million 2025 2024 2025 2024 2024
Net sales
Atria Finland 330.1 336.1 637.8 645.9 1,295.6
Atria Sweden 104.1 93.8 193.0 175.9 360.2
Atria Denmark & Estonia 31.6 32.1 61.4 62.8 125.9
Eliminations -6.0 -7.7 -12.0 -13.5 -26.3
Net sales, total 459.8 454.3 880.3 871.2 1,755.4
EBIT before items
affecting comparability
Atria Finland 15.7 17.1 26.9 24.2 60.4
Atria Sweden 2.3 1.6 3.0 1.6 4.5
Atria Denmark & Estonia 1.5 1.5 3.2 2.9 5.3
Unallocated -1.8 -1.7 -2.6 -2.4 -4.8
Adjusted EBIT 17.6 18.4 30.5 26.4 65.4
Adjusted EBIT, % 3.8 % 4.0 % 3.5 % 3.0 % 3.7 %
Items affecting
comparability of EBIT:
Atria Finland
Poultry business reorganization costs 1.0
EBIT 17.6 18.4 30.5 26.4 66.4
EBIT, % 3.8 % 4.0 % 3.5 % 3.0 % 3.8 %
Profit before taxes 15.1 14.5 25.2 18.4 52.1
Earnings per share, EUR 0.41 0.39 0.69 0.49 1.41
Adjusted earnings per share, EUR 0.41 0.39 0.69 0.49 1.38
Kai Gyllström, CEO
“Atria Group's EBIT and net sales for January-June were at a good level. The
Group's net sales grew, driven by Atria Sweden. We can also be satisfied with
the April-June result because despite less than favourable market conditions and
a variety of challenges, we managed to achieve a good result.
The market for Atria's product categories in the Finnish retail trade has been
subdued throughout the early part of the year. Reasons for the sluggish market
include the impact of nutrition recommendations on consumers, difficulties in
beef supply and general economic uncertainty. What is positive, however, is that
the downward market trend seems to be easing in the second quarter. The market
for poultry products has grown, but all other Atria product categories are in
the red in the January-May market metrics. The cool start to the summer delayed
the start of the barbecuing season, which is important for us, in all Atria's
business areas, especially Finland. At the same time, the Finnish Food Workers'
Union's strike and the overtime bans made the review period difficult. Despite
the challenges, Atria Finland achieved a good result in the second quarter.
Enhancing the efficiency of poultry production and concentrating production in
Nurmo as well as the start of chicken exports to China, strengthened Atria
Finland's EBIT.
The growth of Atria Sweden's net sales and the company's profit development have
been very positive. Behind the positive development are very successful sales to
the retail trade and Foodservice customers. The Gooh! business, which was
acquired in May last year, has also improved the result for Sweden.
Profit development in the Denmark & Estonia business area has also been positive
in January-June. Atria Estonia's sales to the retail trade increased, and market
shares strengthened in a growing market. The African swine fever infection on
one of Atria's pig farms in Estonia, which was detected at the end of June,
weakened the result for the second quarter. For Atria Denmark, the early part of
the year has been subdued due to weaker sales to retail trade and Foodservice
customers. On the other hand, exports have grown.
An African swine fever infection was detected on Atria's pig farm in southern
Estonia at the end of June. According to estimates, the financial impact on
Atria will be minor. The cleaning and disinfecting of the farm are being carried
out under the supervision of the local authorities. We believe that production
on the pig farm can return to normal during the autumn. Atria has started
discussions with the local authorities about compensation granted by the
Estonian state to producers in connection with cases of swine fever. We have
further tightened Atria's internal guidelines for travel and all kinds of
movement between our sites to limit the outbreak effectively.
In March, we launched a planning project for a phased investment programme for
convenience food production at the Nurmo plant. The total cost of the investment
project is estimated to be approximately EUR 110 million. In the first phase, we
will modernise pancake production with an investment of EUR 7 million. After the
review period, we announced the start of the second investment phase, during
which we will invest EUR 82.4 million in convenience production and green
transition energy solutions at the Nurmo plant. For this project, we received
aid for clean transition investments from Business Finland. This is a major step
forward for Atria in achieving our environmental goals. Our modernised
convenience food factory allows us to produce and develop new and innovative
types of convenience food. The energy solutions to be implemented at the Nurmo
plant in the next three year will almost halve the carbon dioxide emissions of
Atria Group's own production from the 2024 level.
During the review period, we have consistently advanced our sustainability
projects. Several energy efficiency projects have been carried out at our
Swedish and Estonian sites. In Finland, A-Rehu's chicken feeds were awarded the
“Hyvää Suomesta” (Produce of Finland) swan label. The label has been awarded to
the chicken feeds used by Atria's chain of family farms as a guarantee of the
products' high degree of domestic origin. Domestic protein sources — feed peas
and dehulled oats replace imported soy. The 'Hyvää Suomesta' (Produce of
Finland) label confirms that at least 75% of the raw materials used in the feed
are of Finnish origin. In addition, the products are manufactured in Finland.
Merja Leino, Atria Group's long-term EVP for Sustainability has announced her
retirement from Atria on 1[st] of June, 2026. Kati Janhunen, MSc (Econ.), was
appointed as the next EVP for Sustainability and a member of the Management Team
after the review period. I would like to thank Merja Leino for her long career
within Atria Group. She has worked for Atria for more than 30 years in varied
and demanding positions. Her contribution to the development of Atria's business
operations, quality, product development and corporate responsibility has been
significant."
April-June 2025
Atria Group's net sales in April-June were EUR 459.8 million
(EUR 454.3 million). The consolidated EBIT was EUR 17.6 million
(EUR 18.4 million), or 3.8% (4.0%) of net sales.
Atria Sweden's net sales increased by EUR 10.3 million compared to the
corresponding period last year, thanks to good sales to retail trade and
Foodservice customers. The strengthened exchange rate for the Swedish krona also
increased the net sales in euros. Atria Finland's net sales were EUR 6.0 million
lower than in the comparison period. In Finland, the subdued market development
of Atria's product categories in retail trade weakened Atria's net sales. The
cool weather at the start of the summer delayed the barbecue season and weakened
the sales of seasonal products. Full deliveries could not be made for the Easter
and May Day periods due to the Finnish Food Workers' Union's strike and the
overtime and shift change bans related to labour market negotiations. Atria
Denmark & Estonia's net sales were EUR 0.5 million weaker than in the
corresponding period in the previous year.
Atria Finland's EBIT decreased by EUR 1.4 million but remained at a good level.
The decrease in net sales also reduced the operating profit for the April-June
period. Atria Sweden's EBIT was EUR 0.7 million higher than in the corresponding
period of the previous year thanks to successful sales to retail trade and
Foodservice customers, and the integration of the Gooh! convenience food
business with Atria. The EBIT of Atria Denmark and Estonia remained at the same
level as in the corresponding period last year.
An African swine fever infection was detected on an Atria pig farm in Estonia at
the end of June. It is currently estimated that the direct costs incurred by
Atria will be minor, amounting to approximately EUR 0.6 million. The costs have
been booked for the second quarter. The investigation of any compensations is
ongoing. As a risk management measure, Atria Estonia has limited all movement
between sites to a minimum. The farm is undergoing thorough cleaning and
disinfection under the supervision of the local authorities. Production on the
farm is expected to continue normally after a few months.
The beef shortage in Europe has not had a significant impact on Atria's sales
development so far. The shortage of raw material has increased the price of beef
on the market.
In April, Atria Finland announced that it would invest approximately EUR 7
million in a new pancake production line and the technical modernisation of the
production department. With this investment, Atria is responding to the growth
in consumer demand and strengthening its position and competitiveness in the
growing market for convenience food. The demand for pancakes in Finland has
increased significantly over the last year. Measured in value, the market growth
is about 14 per cent compared to the previous year. The investment in pancake
production enables the development of a new kind of product range and the
utilisation of a more diverse raw material base. At the same time, the
production capacity of pancakes will increase, enabling the growth of both
domestic supply and exports. The investment is due to be completed in the summer
of 2026, after which the new production line will be commissioned.
Atria Finland's net sales in April-June were EUR 330.1 million (EUR 336.1
million). The subdued market development of Atria's product categories in retail
trade weakened Atria's net sales. The cool start of the summer has delayed the
start of the barbecue season and weakened the sales of seasonal products. Full
deliveries could not be made for the Easter and May Day periods due to the
Finnish Food Workers' Union's strike between 8 and 10 April 2025 and the
overtime and shift change bans related to labour market negotiations. The
overtime and shift change bans were in force from 7 February to 14 April 2025.
Industrial action had a negative impact on deliveries and the net sales and EBIT
of the review period. Atria's sales to Foodservice customers were lower than in
the previous year. Net sales in exports and industrial sales improved slightly
from the previous year. EBIT totalled EUR 15.7 million (EUR 17.1 million). EBIT
for the review period decreased by EUR 1.4 million but remained at a good level.
The decrease in net sales also reduced the EBIT for the April-June period.
Atria Sweden's net sales in April-June were EUR 104.1 million (EUR 93.8
million). Net sales grew by EUR 10.3 million from the corresponding period last
year. In local currency, net sales increased by 6.1 percent. 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. The exchange rate for the Swedish krona
strengthened, which increased net sales in euros. EBIT totalled EUR 2.3 million
(EUR 1.6 million). The increase in net sales strengthened EBIT. Raw material
prices remained high. The Swedish krona has continued to strengthen in the
second quarter. This has also had a positive impact on Atria Sweden's result.
Atria Denmark & Estonia's net sales in April-June were EUR 31.6 million (EUR
32.1 million). EBIT totalled EUR 1.5 million (EUR 1.5 million). Atria Estonia's
sales to the retail trade fell due to the delayed start of the barbecuing
season. Atria Estonia's result weakened due to the additional costs caused by an
African swine fever infection on one of Atria's pig farms. The development of
Atria Denmark's net sales in April-June was subdued, which was mainly due to
lower sales to retail trade. Also, the sales to Foodservice customers were at a
lower level than in the corresponding period last year. The export business
experienced positive development.
January-June 2025
Atria Group's net sales in January-June were EUR 880.3 million
(EUR 871.2 million). Consolidated EBIT was EUR 30.5 million (EUR 26.4 million),
or 3.5% (3.0%).
Net sales increased by EUR 9.1 million from the previous year. Atria Sweden's
net sales grew by EUR 17.1 million which was the result of successful sales to
retail and Foodservice customers. The acquisition of Gooh! also strengthened the
net sales of Atria Sweden. The strengthened Swedish krona increased the net
sales in euros. Atria Finland's net sales decreased by EUR 8.1 million due to
the weak market development of Atria's product categories and the slow start of
the barbecue season. The Finnish Food Workers' Union's strike in April and the
related overtime and shift change bans also had a negative impact on the net
sales of the review period. Net sales of Atria Denmark & Estonia decreased by
EUR 1.4 million.
The Group's EBIT of EUR 30.5 million was EUR 4.1 million higher than in the
corresponding period of the previous year. All business areas improved their
results. Atria Finland's EBIT improved by EUR 2.6 million in January-June. The
good performance is a result of the improved efficiency of poultry production
and the concentration of production in the new poultry plant in Nurmo. Atria
Sweden's EBIT grew by EUR 1.4 million from the previous year. The increase in
net sales strengthened Atria Sweden's result. Atria Denmark & Estonia's EBIT was
EUR 0.3 million higher than in the comparison period.
In March, Atria started to plan an investment programme related to the
production of convenience foods and green transition energy solutions at the
Nurmo production plant. After the review period, Atria announced in July that it
would invest EUR 82.4 million in the modernisation of convenience food
production and the related energy solutions.
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 in January-June were EUR 637.8 million (EUR 645.9
million). Net sales fell mainly due to the weakened sales to retail trade. The
weak market development of Atria's product categories and the slow start to the
barbecue season weighed on net sales. The Finnish Food Workers' Union's strike
in April and the related overtime and shift change bans also had a negative
impact on the net sales of the review period. Net sales from exports increased
compared to the corresponding period of the previous year. The nutrition
recommendations published at the end of last year have had a negative impact on
consumer demand for meat products, but the decline in demand is easing compared
to the development of the early part of the year. EBIT totalled EUR 26.9 million
(EUR 24.2 million). The good performance is caused by the improved efficiency of
poultry production and the concentration of production in the new poultry plant
in Nurmo. The export of chicken meat to China, which started at the end of last
year, strengthened the company's EBIT.
Atria Sweden's net sales in January-June were EUR 193.0 million (EUR 175.9
million), growing by EUR 17.1 million from the corresponding period last year.
In local currency, net sales increased by 6.9 percent. Sales to retail trade and
Foodservice customers increased. The acquisition of Gooh! in May 2024 also
increased net sales. EBIT totalled EUR 3.0 million (EUR 1.6 million). The growth
of net sales improved the company's EBIT. The integration of the Gooh! business
into Atria and the stronger Swedish krona increased the EBIT of the first half
of the year compared to the corresponding period last year.
Atria Estonia's net sales in January-June were EUR 61.4 million (EUR 62.8
million). EBIT totalled EUR 3.2 million (EUR 2.9 million). Atria Estonia's
result was at a good level thanks to stronger market shares and increased sales
to the retail trade. The greatest increase occurred in the sales of ham
products, fresh meat and minced meat. The African swine fever infection detected
on one of Atria Estonia's pig farms at the end of June weighed on the result of
the review period. In Atria Denmark, the weak development of sales to retail
trade and Foodservice customers weighed on EBIT. EBIT improved from the
corresponding period of the previous year.
Group key indicators
Q2 Q2 H1 H1
EUR million 2025 2024 2025 2024 2024
Net sales 459.8 454.3 880.3 871.2 1755.4
Adjusted EBIT 17.6 18.4 30.5 26.4 65.4
Adjusted EBIT, % 3.8 % 4.0 % 3.5 % 3.0 % 3.7 %
EBIT 17.6 18.4 30.5 26.4 66.4
EBIT, % 3.8 % 4.0 % 3.5 % 3.0 % 3.8 %
EPS, EUR 0.41 0.39 0.69 0.49 1.41
Adjusted EPS, EUR 0.41 0.39 0.69 0.49 1.38
Shareholders´ equity per share EUR 14.36 13.59 14.28
Equity ratio, % 43.6 % 40.4 % 43.2 %
Adjusted return on equity (rolling 12m), % 11.1 % 8.5 % 10.2 %
Adjusted return on investment (rolling 12m), % 10.7 % 8.4 % 10.1 %
Sustainability: aiming for a carbon neutral food chain
Atria published its first sustainability report in accordance with the Corporate
Sustainability Reporting Directive (CSRD) as part of the Board of Directors'
report 2024. The report is published on Atria's website at:
https://www.atria.com/en/investors/financial-information/annual-reports/
Atria is committed to reducing its greenhouse gas emissions in line with the
Paris Agreement's 1.5°C targets and to developing its business resilience to the
impacts of climate change. The target level of Atria's emission reductions is
based on climate science and approved by SBTi (the Science Based Target
initiative). The key to reducing the emissions of Atria's own industrial
operations is a controlled transition towards the use of emission-free and
renewable forms of energy, as well as the improvement of energy efficiency.
During the first half of the year, Atria has taken the following measures to
achieve its target for greenhouse gas emissions:
Energy efficiency and consumption reduction:
Several environmental and energy efficiency projects have been carried out at
Swedish production sites. The Skene plant has improved the collection of
rapeseed oil left over from production. Atria receives compensation for oil
collection and recycling. In addition, a demand-controlled ventilation system
has been installed in Skene. At the Tranås plant, the installation of a new
ventilation unit and an updated control system has produced significant energy
savings. In Moheda, the ventilation unit was replaced, and demand-controlled
ventilation was installed. This has resulted in an estimated 20% reduction in
electricity consumption at the plant.
Atria's Estonian production plant in Valga has implemented a heat recovery
system, which brings energy savings to Atria.
Manure storage and treatment:
Atria Estonia has started cooperation with the local biogas plant. The sludge
generated at Atria's wastewater treatment plant is taken to the biogas plant to
be used as raw material, which leads to significant energy savings and transport
cost savings.
Atria is a shareholder in the biogas plant owned by Nurmon Bioenergia. The
construction of the production plant started in the autumn of 2024 and has now
progressed to the equipment installation phase. The biogas plant will be built
in the vicinity of Atria's production plant in Nurmo. The biogas plant will
produce renewable domestic energy and various types of bio-fertilisers from
manure obtained from farms in the South Ostrobothnia region and from
agricultural and food industry side streams. Once completed, the plant will have
a production capacity of approximately 125 GWh of sustainably produced liquefied
biogas. The plant will be commissioned in 2026.
Reduction in soy use:
The chicken feeds used by Atria's chain of family farms was awarded the “Hyvää
Suomesta” (Produce of Finland) label. Atria Finland Ltd's subsidiary, A-Rehu,
can now use the “Hyvää Suomesta” (Produce of Finland) label in its chicken
feeds. The label has been awarded to the chicken feeds used by Atria's chain of
family farms as a guarantee of the products' high degree of domestic origin.
Finnish protein sources - field peas and hulled oats - have been used to replace
imported soy for some time. The development of A-Rehu's chicken feeds is based
on the use of Finnish raw materials. Investing in domestic arable farming
increases self-sufficiency, enables better traceability, and supports
sustainable food production and the livelihood of Finnish farmers.
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 are weakening the outlook
for the rest of 2025. The outlook for the rest of the year is particularly
affected by the continued sluggishness of the Finnish retail market in the
product categories represented by Atria.
Disclosure
Atria Plc complies with the disclosure procedure in accordance with standard
5.2b of the Financial Supervisory Authority and publishes its half-year
financial report for 1 January to 30 June 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 half-year financial report
Atria Plc's CEO Kai Gyllström will present the company's half-year financial
report in a webcast today, 17 July, 2025 at 2.00 - 3.00 pm. 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 half-year financial report is available on our website at www.atria.com.