ATRIA GROUP PLC'S INTERIM REPORT 1.1. - 30.9.2003
Atria Group's operating profit in the third quarter of 2003 was
EUR 24.0 million (EUR 21,2 million). The profit before
extraordinary items was EUR 18,8 million (EUR 17.8 million). The
turnover was EUR 572.9 million (EUR 514.7 million), earnings/share
EUR 0.82 (EUR 0.78)and shareholders' equity per share was EUR
12.44 (EUR 11.80).
PROFIT AND LOSS ACCOUNT GROUP
(EUR Million) 1-9/2003 1-9/2002 1-12/2002
TURNOVER 572.9 514.7 707.0
NET OPERATING PROFIT 24.0 21.2 25.6
PROFIT BEFORE
EXTRAORDINARY ITEMS 18.8 17.8 20.4
PROFIT BEFORE TAXES 18.8 17.8 20.4
PROFIT 13.0 12.4 14.1
The taxes in the profit and loss account are equivalent tax on
income
for the period under review.
BALANCE SHEET, GROUP
(EUR Million)
ASSETS 30.9.2003 30.9.2002 31.12.2002
FIXED ASSETS
Intangible assets 48.8 53.0 50.1
Tangible assets 252.5 236.2 243.8
Financial assets 6.9 6.9 5.0
CURRENT ASSETS
Inventories 44.6 44.4 46.1
Receivables 85.0 78.7 77.5
Cash in hand and at bank 11.0 9.3 16.5
TOTAL 448.8 428.5 439.0
LIABILITIES
SHAREHOLDERS' EQUITY
Share capital and
other shareholders´equity 196.8 186.7 188.6
MINORITY INTEREST 1.4 1.0 1.2
CREDITORS
Long-term 113.0 93.8 123.4
Short-term 137.6 147.0 125.8
TOTAL 448.8 428.5 439.0
KEY FIGURES (EUR)
30.9.2003 30.9.2002 31.12.2002
Gross investments in
fixed assets 28.9 56.1 66.0
Gross investments
% of turnover 5.1 10.9 9.3
Personnel on average 3481 3265 3300
Earnings per share 0.82 0.78 0.89
Shareholders' equity per share 12.44 11.80 11.92
Equity ratio, % 44.2 43.9 43.3
Interest-bearing debt 156.3 143.6 157.9
CONSOLIDATED CASH
FLOW STATEMENT (EUR million) 1-9/2003 1-9/2002 1-12/2002
Cash flow from operations 43.8 38.3 50.9
Financing items and taxes -9.0 -9.2 -14.9
Cash flow from operating 34.8 29.0 36.0
activities
Investing activities -28.9 -55.9 -66.1
Cash flow from investing -28.9 -55.9 -66.1
activities
Net change in loans -4.6 33.0 43.2
Dividends paid -6.7 -6.8 -6.8
Net cash from financing -11.3 26.2 36.4
activities
Change in liquid funds -5.4 -0.9 6.3
CONSOLIDATED LIABILITIES
(EUR million)
30.9.2003 30.9.2002 31.12.2002
DEBTS INVOLVING MORTGAGES OR
OTHER COLLATERAL AS SECURITY
Loans from financial
institutions 98.4 86.5 95.0
Pension loans 5.4 5.3 5.4
Total 103.8 91.8 100.4
MORTGAGES AND OTHER COLLATERAL
GIVEN AS GENERAL SECURITY
Mortgages on real property 75.6 64.0 64.4
Mortgages on company assets 48.4 22.3 25.6
Other collateral 41.7 43.2 40.6
Total 165.7 129.5 130.6
MORGAGES AND OTHER COLLATERAL
GIVEN
ON BEHALF OF GROUP COMPANIES
Guarantees 35.0 21.9 21.8
CONTINGENT LIABILITIES NOT
INCLUDED IN THE BALANCE SHEET
Limits not used 73.5 61.6 82.3
Guarantees 1.0 0.9 1.0
Leasing liabilities
Payable in the next
financial year 0.9 0.9 1.0
Payable later 1.4 2.7 1.2
Total 2.3 3.6 2.2
The figures are not audited.
ATRIA IMPROVES ITS RESULT
The Atria Group's turnover has seen growth of EUR 58.2 million
since the turn of the year, up 11.3% to EUR 572.9 million (EUR
514.7 million in 2002). A large share of this growth was generated
in Sweden, because the business operations of Samfood AB, which
was acquired last autumn, were only included in the figures for
2002 as from the September of that year. The Lithuanian company
UAB Vilniaus Mesa has contributed to turnover since the beginning
of September 2003.
Consolidated profit before extraordinary items amounted to EUR
18.8 million (EUR 17.8 million) during the report period and to
EUR 10.9 million (EUR 10.4 million) in the third quarter.
Operating profit during the third quarter was EUR 12.4 million
(EUR 11.7 million), up 6.1%, while operating profit since the
beginning of the year has amounted to EUR 24.0 million (EUR 21.2
million), representing growth of 13.6%.
The trends in Atria's business functions in 2003 have been
favourable in both of its home markets, Finland and Sweden, with
the exception of the slaughterhouse industry, where the strong
overproduction of pork and low price levels have continued to
burden profitability. In addition, the great supply of meat has
lowered the price of meat products in Finland. However, Atria's
firm position in grilling sausages and moderate approach to price
reductions have contributed to its positive earnings trend. In
addition, cost trends have been favourable in all respects. The
consolidated result for the first part of the year was higher than
the previous year's figure due to the improvement in the earnings
of Lithells AB in Sweden, Liha ja Säilyke Oy in Finland and Atria
Oy's non-slaughterhouse businesses.
Good structural trends in sales
Due to the weak trend in prices, Atria's full-year domestic sales
will not increase. However, it is a positive factor that sales
have developed well in many of the product groups that are
important to the company, namely meat products and convenience
foods. Sales of poultry have also developed well. On the whole,
the structure of all sales to the retail and institutional kitchen
sectors has evolved favourably. The proportional breakdown of the
Atria Group's turnover is influenced by the vigorous growth of
Lithells AB. As from autumn 2002, when the business functions of
Samfood were incorporated into the Lithells Group, the Group has
expanded vigorously in the Swedish market. The turnover of the
Lithells Group had grown by 35.3% by the end of September 2003.
The business functions of Samfood were heavily in the red under
their previous owner. Through strong downsizing measures, the
functions have now been revitalised and the entire Lithells Group
will post a significantly better result this year than it did in
the previous year.
Structural changes in Lithells AB
At present, Lithells AB is divided into Atria Lithells AB and
Samfood AB, which are in the meals business, Atria Concept AB,
which is in the fast food business, and Svensk Snabbmat AB, which
is in the local wholesale business. At the end of 2003, Samfood AB
and Atria Lithells AB will be merged to form a single industrial
company. At that point, the division of tasks between the plants
will have also been seen to completion. The Sköllersta plant the
largest industrial meat unit in Sweden specialises in the
manufacture of sausages and hamburger patties. The Malmö plant
mainly manufactures convenience foods and cold cuts. The plant in
Årsta, Stockholm, is specialised in retail-packing meat, for which
a co-operation agreement has been made with Coop Sverige AB. The
fast food company Atria Concept AB has also stepped up its
functions substantially both on the fast food stand front with the
Sibylla, Fyrkanten and Grillköket chains as well as with the
Sibylla Inside concept. At present, there are about 1,500 of the
latter small units, of which slightly over 900 are located in
Sweden and the rest in Finland, Poland and the Baltic countries.
Operations are presently profitable in all these countries. In
spite of the weakening of the business climate in the field,
Svensk Snabbmat AB's local wholesale has successfully improved its
market share and earnings trend.
UAB Vilniaus Mesa is building a new plant
The name of UAB Saltuva, which was acquired in July, was changed
to match its brand and is now UAB Vilniaus Mesa. The company is
currently constructing a plant building measuring about 7500
square metres in Vilnius. When the plant is completed, the
company's present capacity will be doubled. It is believed that
the structure of the business will change once the country joins
the EU and the company's position will improve in this vigorously
evolving market.
Group investments
Atria Oy has completed a poultry plant expansion that cost about
EUR 20 million. In addition to stepping up capacity, it will
enable improved flexibility in the control of functions and allow
the company to stream resources into the development of new
products. Variable production expenses will also decline. Liha ja
Säilyke Oy has started up the construction of a new dispatching
building in Forssa. It will be completed in autumn 2004. The
present dispatching premises will be utilised to achieve greater
output in the focus areas of Liha ja Säilyke Oy. The other
investments made by the Atria Group are primarily replacement
investments.
Outlook for the future
In the first part of the year, operations in Sweden and the
manufacture of meat products in Finland improved their results.
The weak trend in the price of pork that began in September 2002
now seems to have come to an end, swinging into slight growth. At
the time of writing, the company seems to be very well poised to
rack up better earnings in the fourth quarter of the present year
than in the corresponding quarter of the previous year.
Atria Group plc is a forward-looking food processing company that
is going international at a fast rate. Our brands are Atria, Chick
and Duke's as well as Sibylla, Lithells and Forssan. In 2003,
Atria Group's turnover is expected to rise to EUR 800 million, of
which Sweden will account for about EUR 350 million. We employ
3,700 people on average. The largest production companies of the
Atria Group are Atria Oy, Lithells AB, UAB Vilniaus Mesa and Liha
ja Säilyke Oy. Atria Group is the biggest company in the meat
business in Finland and the largest manufacturer of meat products
in the Nordic countries and the Baltic Sea area.
ATRIA GROUP PLC
Seppo Paatelainen
President
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