ATRIA OYJ'S INTERIM REPORT 1.1. - 31.3.2003
Atria Group's operating profit in the first quarter of 2003 was
EUR 3.8 million (EUR 3.1 million). The profit before extraordinary
items, was EUR 2.0 million (EUR 2.2 million). The turnover was EUR
173.8 million (EUR 151.4 million), earnings per share EUR 0.09(EUR
0.08) and shareholders' equity per share was EUR 11.98 (EUR
11.54).
PROFIT AND LOSS ACCOUNT GROUP
(EUR Million) 1-3/2003 1-3/2002 1-12/2002
TURNOVER 173.8 151.4 707.0
NET OPERATING PROFIT 3.8 3.1 25.6
PROFIT BEFORE
EXTRAORDINARY ITEMS 2.0 2.2 20.4
PROFIT BEFORE TAXES 2.0 2.2 20.4
PROFIT 1.5 1.2 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 31.3.2003 31.3.2002 31.12.2002
FIXED ASSETS
Intangible assets 48.9 41.6 50.1
Tangible assets 246.5 212.1 243.8
Financial assets 5.3 5.6 5.0
CURRENT ASSETS
Inventories 48.4 38.5 46.1
Receivables 91.2 72.2 77.5
Cash in hand and at bank 6.0 14.8 16.5
TOTAL 446.3 384.8 439.0
LIABILITIES
SHAREHOLDERS' EQUITY
Share capital and
other shareholders'equity 189.4 182.6 188.6
MINORITY INTEREST 1.1 0.6 1.2
CREDITORS
Long-term 116.6 82.9 123.4
Short-term 139.2 118.7 125.8
TOTAL 446.3 384.8 439.0
KEY FIGURES (EUR)
31.3.2003 31.3.2002 31.12.2002
Gross investments in
fixed assets 9.0 7.8 66.0
Gross investments
% of turnover 5.1 5.1 9.3
Personnel on average 3645 3132 3300
Earnings per share 0.09 0.08 0.89
Shareholders' equity per share 11.98 11.54 11.92
Equity ratio, % 42.7 47.6 43.3
Interest-bearing debt 170.2 123.2 157.9
CONSOLIDATED CASH
FLOW STATEMENT (EUR million) 1-3/2003 1-3/2002 1-12/2002
Cash flow from operations -1.6 11.7 50.9
Financing items and taxes -4.8 -6.5 -14.9
Cash flow from operating -6.4 5.3 36.0
activities
Investing activities -9.2 -7.2 -66.1
Cash flow from investing -9.2 -7.2 -66.1
activities
Net change in loans 5.1 6.6 43.2
Dividends paid - - -6.8
Net cash from financing 5.1 6.6 36.4
activities
Change in liquid funds -10.5 4.7 6.3
CONSOLIDATED LIABILITIES
(EUR million)
31.3.2003 31.3.2002 31.12.2002
DEBTS INVOLVING MORTGAGES OR
OTHER COLLATERAL AS SECURITY
Loans from financial
institutions 104.1 78.3 95.0
Pension loans 4.9 8.2 5.4
Total 109.0 86.5 100.4
MORTGAGES AND OTHER COLLATERAL
GIVEN AS GENERAL SECURITY
Mortgages on real property 69.8 62.3 64.4
Mortgages on company assets 45.8 22.4 25.6
Other collateral 40.9 64.7 40.6
Total 156.5 149.4 130.6
MORGAGES AND OTHER COLLATERAL
GIVEN
ON BEHALF OF GROUP COMPANIES
Guarantees 34.2 - 21.8
CONTINGENT LIABILITIES NOT
INCLUDED IN THE BALANCE SHEET
Limits not used 76.7 68.7 82.3
Guarantees 0.9 0.9 1.0
Leasing liabilities
Payable in the next
financial year 0.9 0.6 1.0
Payable later 1.4 1.2 1.2
Total 2.3 1.8 2.2
The figures are not audited.
ATRIA SEES STRONG GROWTH; EARNINGS OUTLOOK FOR THE REST OF THE
YEAR
The Atria Group's turnover grew by 14.8 per cent in the first
quarter, rising to EUR 173.8 million. Growth was primarily due to
the expansion of our business operations in Sweden when the
Samfood business functions acquired last summer were integrated
into those of Lithells AB. In fact, business operations in Sweden
will generate over 40 per cent of the Group's turnover during the
present year.
The profit for the first quarter was EUR 2.0 million (EUR 2.2
million). Traditionally, the Group racks up the bulk of its
earnings after the first quarter. During the present year, the
profit was significantly weakened by the fact that the price level
of pork was low due to strong overproduction in all of Europe. The
volume of pork processed by Atria grew by 11.6 per cent. The
strong increase in production and the weak markets were to blame
for exceptionally weak earnings performance in the entire pork
production chain. The beef production chain is burdened by
expenses caused by the incidence of BSE, although these expenses
have now declined. The earnings trend was also weakened by the non-
recurring adaptation measures to integrate Samfood AB into
Lithells AB's other functions. This effort had been carried out
for the most part by the end of March and the earnings trend has
swung back buoyantly into a positive direction.
Favourable trends in retail sales
The trend in Atria's retail sales remained unchanged in spite of
the tightening of competition within the retail sector and the
field itself. Earnings developed favourably with the exception of
meat sales. As usual, the strongest area comprised meat products.
The extension to the poultry processing plant was partly put into
production use in March. The pricetag of the plant was EUR 20
million. After its full inauguration in the autumn, substantial
rationalisation benefits will be achieved and it will enable the
company to provide an even more diverse range of products for the
growing poultry market. Retail sales developed favourably in the
first months of the year, although chicken consumption is not
increasing in the same manner as before.
Liha ja Säilyke expands in Forssa
The salads and cold cuts sold under Liha ja Säilyke Oy's Forssan
brand have performed well on the market. In the summer, the
company will start to expand its production facilities, thereby
ensuring the hitch-free development of production. Liha ja Säilyke
Oy reached its sales and profitability targets in the first months
of the year.
Lithells AB grows
Following the acquisition of Samfood AB, Lithells AB's turnover is
expected to rise from last year's figure of EUR 240 million to EUR
350 million. It is also expected that the Group will improve its
earnings significantly. At present, the Group comprises Atria
Lithells AB and Samfood AB, which make meat products and
convenience products, Atria Concept AB, which is in the fast-food
business, and the local wholesale company Svensk Snabbmat för
Storkök AB. In the first part of the year, the manufacturing
companies transferred production operations: Atria Lithells AB's
plant close to Örebro will specialise in meat products, Samfood
AB's plant in Malmö will mainly focus on convenience foods, cold
cuts and bacon, and the plant in Stockholm on retail-packed meat.
In spite of the merger and transfer of functions, sales have grown
and major rationalisation savings have been achieved. Atria
Concept AB is engaged in the fast-food business with its Sibylla,
Fyrkanten and Sammy's chains, which hold a share of about 65 per
cent of the Swedish fast food stand market. The two latter chains
were acquired as part of Samfood AB. Svensk Snabbmat för Storkök
AB has ten local wholesale offices in various parts of Sweden.
Both its turnover and earnings have more than doubled during the
past five years.
Changes in the Group structure
At the turn of the year, Atria realigned its corporate structure,
establishing the parent company Atria Oyj as a holding company for
its subsidiaries. The largest subsidiaries are Atria Oy and Liha
ja Säilyke Oy, which operate in Finland, and Lithells AB, which is
in business in Sweden. It is intended that Atria Oyj will be
renamed Atria Group plc at the Annual General Meeting on 7 May
2003. In order to increase the efficiency of Finnish business
functions, it is intended that the pig and cattle slaughterhouses
and meat-cutting operations in various localities will
incorporated as listed companies; maintenance operations will also
be incorporated. The entire organisation of Atria Oy will also be
changed. After the change in business procedures, the number of
salaried employees will be decreased by about 40.
Outlook for the future
It is exceptionally difficult to predict full-year earnings at
this time. The greatest uncertainty is the trend in the meat
market, especially the market situation of pork. Strong
overproduction in Europe and the weak exchange rate development of
the dollar and yen have significantly weakened profitability. For
Atria, the profitability of the meat market has a strong effect on
the entire Group's profitability.
The trend in the profitability of Atria's meat product and poultry
business is expected to remain favourable. Likewise, the strong
improvement in the earnings of Lithells AB and the profitability
of Liha ja Säilyke Oy is expected to support the Group's earnings
performance.
ATRIA OYJ
Seppo Paatelainen
Managing Director
DISTRIBUTION
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The interim report will be mailed at request or it can be read on
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