Business risks

Atria as an investment

Business risks

Q3/2019

Risks related to the quality, availability, safety and price of raw materials and products are ordinary risks affecting Atria's profitability in the food production chain, from primary production to consumption.

African swine fever, a risk related to animal health, is a significant worldwide risk. It has spread to for example Estonia, Russia and China. The consumption of pork in China is the highest in the world, and due to the disease, the country is currently unable to meet its demand domestically. China's problems affect pork prices and production around the world. Swine fever can also spread to Finland. Atria has taken several precautionary measures to prevent the disease from spreading into its production facilities and contract farms.

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 or improving of the financial results of business areas. At Atria, the most significant exchange rate changes affecting the euro-denominated net sales, result and equity take place in the Russian rouble and the Swedish krona.

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. The Atria Way of Leading programme and the Safely Home from Atria occupational safety programme continued during the third quarter.

Work on risk prevention has continued in the third quarter. Risk assessments have been carried out in Finland and Sweden. Updates have also been made to the Atria Risk Management Manual.

A more detailed description of the risks related to Atria's operations was provided in the 2018 annual report.