Business risks

Atria as an investment

Business risks

H1/2019

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 that belongs to this group. African swine fever 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 now unable to meet its demand domestically. China's problems shift the international pork market and impact pork prices as well as grain production and prices. The swine fever can also spread to Finland. Atria has taken several precautionary measures to prevent the disease from spreading into its production facilities. In addition to meat raw material, the availability and prices of crops are a significant risk to Atria as they change the production costs at meat 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. 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 and the Safely Home from Atria occupational safety programme were continued. 

During the first half of the year, work has been carried out to prevent various risks that may cause damage, contingency plans have been updated, and risk assessments have been completed.

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