Business risks

Atria as an investment

Business risks

Q2/2021

Atria's business, net sales and earnings can be affected by several uncertainties. Risk management and business risks are comprehensively described in Atria's Annual Report 2020, which can be found at www.atria.fi/en/group/investors/financial-information/annual-reports.

Risks related to human and animal health and welfare also occurred in Q2 2021. The COVID-19 pandemic identified in early 2020 is causing uncertainty in Atria's operations, although coronavirus vaccinations have progressed well and restrictions on people's movement and business have been partially removed. The reasons for the continuing uncertainty are the duration of the pandemic, the variants of the virus and the speed of implementation of country-specific vaccination programmes. In the long run, the coronavirus pandemic may also affect economic, legislative and regulatory risks. During the review period, Atria has invested in the health and safety of its personnel and in maintaining the reliability of product deliveries.

The digitalising and globalising world has brought with it cyber risks. Risks related to cyber crime and IT disruptions can also affect Atria's operations, either directly or through service providers' systems. Every effort is made to prevent and protect against them through systematic monitoring and security-enhancing measures.

Rising input costs for primary production and, as the drought continues, the potentially weak harvest prospects in the autumn may increase cost pressures on meat production.

The African swine fever, which has been found in multiple European countries and in China and Russia, affected the price of pork around the world. Considering the risk of African swine fever spreading to Finland, Atria employs prevention measures at its own production plants and contract production farms. Cases of avian flu in Europe have in turn caused uncertainty in the poultry market.