Business risks

Atria as an investment

Business risks

Q4/2018

Risks related to the price, availability, quality and safety of raw materials and products are ordinary risks in the food production chain, from primary production to consumption. They have an impact on the profitability of Atria's operations. The poor harvest season this summer has raised production costs at meat farms during the autumn. This has caused pressure to increase raw material prices. In Estonia, African swine fever is a risk related to animal health. The swine fever can also spread to Finland. Atria has taken several precautionary measures to prevent the disease from spreading into its production facilities.

The general economic climate, geopolitical tensions, significant changes in exchange rates, the development of the meat and consumer product markets, and the competitive environment cause uncertainties in the development of demand. This is reflected in the implementation of Atria's strategy and the maintaining and improving of the financial results of business areas. During the review period, changes in the value of the Russian rouble and the Swedish krona are visible in the Group’s euro-denominated net sales, result and equity.

The availability of skilled and motivated personnel is a risk in terms of strategy implementation and goal achievement. Atria invests in the well-being of its personnel and offers plenty of training opportunities. During the review period, the Atria Way of Leading programme continued and the Safely Home From Atria occupational safety programme was implemented.

Through the design and update of a continuity plan and the specification of insurance programmes, Atria has also continued to eliminate financial effects and to prevent various risks that could result in damage.

A more detailed description of the risks related to the company's operations is provided in the annual report.