A coherent strategy for a changing operating environment

Through its strategy, Atria strives to secure and improve profitability, boost growth and increase the company’s value. 

The Healthy Growth Strategy highlights profitable operations and organic growth. In addition to organic growth, Atria will analyse opportunities for acquisitions.

The Healthy Growth Strategy continues and deepens the two key objectives of the previous strategy period: improving profitability and strengthening the balance sheet. As a financially strong and profitable company, Atria is able to grow, innovate and respond to rapid changes in the operating environment in all its business areas.

Atria manages its strategy of Healthy Growth through three main themes shared by all of its business areas. Each business area (segment) deploys the themes by implementing initiatives, projects and measures in line with seven focal points. The segments are Atria Finland, Atria Sweden, Atria Denmark & Estonia and Atria Russia.

Atria's long-term financial targets Target Achieved in 2018 Achieved in 2017 Achieved in 2016
EBIT 5% 2.0% 2.8% 2.3%
Equity ratio 40% 47.7% 47.5% 46.5%
Return on equity (ROE) 8% 4.1% 6.7% 4.7%
Dividend distribution of profit for the period 50% 68.8% (Board of Directors proposal) 54.4%  71.2%

 

Atria manages its strategy of Healthy Growth through three main themes

Commercial excellence
Commercial success will maintain and accelerate our growth. 

Efficiency
Enhanced efficiency will improve our profitability.

Atria Way of Work
Shared practices and values will ensure our profitable, healthy growth over the long term.

Business areas (segments) deploys the themes by implementing initiatives, projects and measures in line with seven focal points.

1. Market insight
We use market and consumer data precisely and innovatively, and aim to be a pioneer in knowledge management in its industry.

2. Category and brand management
We will strengthen the management and development of brands and categories. Our strong brands have the possibility to become even stronger. 

3. Sales excellence
We will develop and reinforce sales tools and customer collaboration with an open mind. We want to be the most preferred and trusted partner in our business.

4. Daily operational efficiency
We will increase the efficiency of operations and productivity with regard to individual jobs, teams, departments, units, businesses and production plants.

5. Supply chain efficiency
We will improve our operations, processes and steering throughout the supply chain, in close cooperation with the chain's different operators.

6. Resource optimisation
We optimise our important resources, such as expertise and technology, raw materials and energy as well as work processes and times.

7. Atria's Way of Leading
We develops our management, which must be interactive, engaging and developing. We aim to get things done to focus on solutions, rather than problems.

Atria’s strategic goal is healthy, profitable growth. We will strive to create healthy growth via current functions and new functions.

Organic growth
The foundation of Atria's Healthy Growth and its backbone is organic growth, which is rising from current operations. We strive for steady growth in net sales and healthy operating profit.

New product segments
We will expand our business into new product segments. The basis for developing these and innovating will be comprehensive market and consumer data, which we are able to use to maximum advantage.

New markets
We will expand our operations to new geographical market areas. Expansion will begin with the current brands, concepts and products.

Acquisitions
To accelerate growth, we will actively analyse opportunities for acquisitions.

Implementation of Atria’s Healthy Growth strategy

Atria's strategy responds to changes and expectations

Atria’s Healthy Growth strategy responds to changes in the operating environment, and it accounts for both consumer expectations and megatrends with an impact on the entire operating environment. Atria’s Healthy Growth provides seamless support for the company’s mission and vision. Atria’s values and responsible operations contribute to the implementation of the strategy.

Changes in the operating environment

  • Purchasing power in Atria’s home market is growing only modestly 
  • Price competition in the industry and distribution channels is tough
  • In Atria’s home market, the consumption of white meat is growing, while the consumption of red meat is in slight decline
  • Globally, the consumption of meat is increasing
  • The number of alternatives to meat, such as vegetable-based food product categories, is growing 
  • The significance of affordability and ease for the consumer is increasing 
  • The power of consumers is growing in all sales channels and the entire food chain 
  • Consumer behaviour is fragmenting, consumption is becoming more individualised 
  • The quality and healthiness of food is becoming increasingly important
  • The origin of food and the responsibility and transparency of production and the entire food chain are becoming increasingly important.

Megatrends with an impact on the operating environment and operations

  • Globalisation, particularly the international economy and competition, has an impact on Atria’s strategic focal points
  • Urbanisation, as well as the ageing of the population and single-person households, has an impact on Atria’s commercial focal points
  • Climate change, its mitigation and the limited amount of natural resources have an impact on the strategies and actions of Atria’s responsible operations
  • Population growth, and the growth in the consumption of food in emerging economies, have an impact on Atria’s strategic and commercial focal points
  • Digitalisation and robotics have an impact on consumption, the organisation of work and working practices.