ATRIA GROUP PLC'S INTERIM REPORT, 1 JANUARY 31 MARCH 2004
The Atria Group's operating profit for the review period amounted
to EUR 5.2 million (EUR 3.8 million). The Group's profit before
extraordinary items was EUR 4.0 million (EUR 2.0 million).
Turnover amounted to EUR 185.6 million (EUR 173.8 million),
earnings per share to EUR 0.12 (EUR 0.09) and equity per share to
EUR 10.74 (EUR 11.98).
PROFIT AND LOSS ACCOUNT GROUP
(EUR Million) 1-3/2004 1-3/2003 1-12/2003
TURNOVER 185.6 173.8 765.1
NET OPERATING PROFIT 5.2 3.8 30.9
PROFIT BEFORE EXTRAORDINARY 4.0 2.0 23.6
ITEMS
PROFIT BEFORE TAXES 4.0 2.0 23.6
PROFIT 2.6 1.5 15.0
The taxes in the profit and loss
account are equivalent tax on
income
for the period under review.
BALANCE SHEET, GROUP
(EUR Million)
ASSETS 31.3.2004 31.3.2003 31.12.2003
FIXED ASSETS
Intangible assets 46.0 48.9 47.5
Tangible assets 255.6 246.5 255.4
Financial assets 6.6 5.3 6.1
CURRENT ASSETS
Inventories 48.0 48.4 47.9
Receivables 86.8 91.2 89.7
Cash in hand and at bank 9.1 6.0 9.9
TOTAL 452.1 446.3 456.5
LIABILITIES
SHAREHOLDERS' EQUITY
Share capital and
other shareholders' equity 226.6 189.4 224.6
MINORITY INTEREST 1.5 1.1 1.6
CREDITORS
Long-term 98.1 116.6 104.3
Short-term 125.9 139.2 126.0
TOTAL 452.1 446.3 456.5
KEY FIGURES (EUR)
31.3.2004 31.3.2003 31.12.2003
Gross investments in
fixed assets 8.1 9.0 36.4
Gross investments
% of turnover 4.4 5.1 4.8
Personnel on average 3435 3645 3377
Earnings per share 0.12 0.09 0.83
Shareholders' equity per share 10.74 11.98 10.65
Equity ratio, % 50.5 42.7 49.6
Interest-bearing debt 125.1 170.2 129.4
CONSOLIDATED CASH
FLOW STATEMENT (EUR million) 1-3/2004 1-3/2003 1-12/2003
Cash flow from operations 8.9 -1.6 54.5
Financing items and taxes 0.2 -4.8 -15.1
Cash flow from operating 9.1 -6.4 39.4
activities
Investing activities -8.1 -9.2 -36.4
Cash flow from investing -8.1 -9.2 -36.4
activities
Issue of shares paid - - 26.4
Net change in loans -1.8 5.1 -29.2
Dividends paid - - -6.7
Net cash from financing -1.8 5.1 -9.6
activities
Change in liquid funds -0.8 -10.5 -6.5
CONSOLIDATED LIABILITIES
(EUR million)
31.3.2004 31.3.2003 31.12.2003
DEBTS INVOLVING MORTGAGES OR
OTHER COLLATERAL AS SECURITY
Loans from financial 73.5 104.1 86.2
institutions
Pension loans 5.5 4.9 5.3
Total 79.0 109.0 91.5
MORTGAGES AND OTHER COLLATERAL
GIVEN AS GENERAL SECURITY
Mortgages on real property 75.4 69.8 75.6
Mortgages on company assets 38.0 45.8 37.9
Other collateral 37.6 40.9 42.9
Total 151.0 156.5 156.4
MORGAGES AND OTHER COLLATERAL
GIVEN
ON BEHALF OF GROUP COMPANIES
Guarantees 34.1 34.2 34.5
CONTINGENT LIABILITIES NOT
INCLUDED IN THE BALANCE SHEET
Limits not used 75.2 76.7 76.3
Guarantees 1.3 0.9 1.4
Leasing liabilities
Payable in the next
financial year 0.9 0.9 1.0
Payable later 1.3 1.4 1.5
Total 2.2 2.3 2.5
The figures are not audited.
ATRIAS FIRST QUARTER IMPROVES ON THE PREVIOUS YEAR
Atria Group plc, Finland's largest meat company and the biggest
manufacturer of meat products in the Nordic and Baltic countries,
achieved a better result during the first three months of the year
than it did in the previous year. Business operations in Sweden
and the business functions in Finland, with the exception of the
slaughtering industry, continued to improve their earnings in line
with the trend that began in the latter half of the previous year.
The profitability of the slaughtering industry remained weak, but
the situation is expected to improve towards the end of the year.
Atria Group's turnover in the first quarter of the year was EUR
185.6 million (EUR 173.8 million in 2003), up 6.8%. Operating
profit came in at EUR 5.2 million (EUR 3.8 million), representing
growth of 38.4%. Profit before taxes and appropriations was EUR
4.0 million (EUR 2.0 million), 96.4% better than in the previous
year. Traditionally, the first months of the year are weak for
earnings, as the result is primarily generated by operations in
the summer and the years end.
Favourable trend in domestic sales
The improvement in domestic earnings was affected by the positive
trend in wholesale and institutional catering sales. Atria Oy's
wholesale grew by 8.3% compared with the previous year, while
aggregate market growth in the product groups represented by Atria
was 6.1% (Source: A.C Nielsen Finland Oy/January-March). Atria saw
the largest growth in sales of meat and poultry. Turnover from
meat products and convenience foods also rose significantly.
Offering-based operations have clearly contributed to sales
growth. Atria's personnel has trained itself for such operations
to be able to meet, in association with the retail sector, the
challenges of an environment that is changing at an ever faster
rate.
Lithells AB's result improves significantly
The turnover of Lithells AB, which mainly operates in Sweden, was
EUR 66.8 million (EUR 67.3 million). The result was substantially
better than in the previous year. Whereas last year Lithells AB
accounted for EUR 8.5 million of the Atria Group's pre-tax profit
of EUR 23.6 million, the full-year result of Lithells AB is
expected to see a significant improvement this year. Contributing
to this improvement are the restructuring measures that will be
seen to completion at Samfood AB, which was acquired in autumn
2002. Samfood AB's operations have been merged into the functions
of Atria Lithells AB, which makes meat products, convenience foods
and packed meat. In addition, Lithells has the subsidiaries Atria
Concept AB, which is in the fast food business, and Svensk
Snabbmat AB, which is in the local wholesale business.
Liha ja Säilyke Oy grows steadily
The Forssa-based Liha ja Säilyke Oy successfully maintained its
strong market position in convenience foods. Sales of whole-meat
cold cuts also grew. Its result was slightly better than in the
previous year. An extension valued at about EUR 6 million will be
completed for the company during the autumn of the present year.
The company's logistics functions will be transferred into the new
extension and the existing premises will be freed up for
production functions.
UAB Vilniaus Mesa's new plant to be completed
A new plant will be completed in May for the Lithuania-based UAB
Vilniaus Mesa. The new plant will give the company the opportunity
to achieve annual turnover growth of about EUR 10 million.
Investments
On 16 April, Atria announced an investment of about EUR 21 million
to modernise pig slaughtering at the Nurmo unit. The pig line
investment works will be divided into numerous stages and the
entire project will be completed in spring 2006. The investment
will impart major operational cost-savings by centralising all
pork processing in one unit instead of the current two units.
Strategic investments in the Baltic countries or Russia may
significantly increase full-year investments.
Atria aims to start up production operations in Russia
Atria is still assessing how to bolster its position in the Baltic
and Russian markets. Preparations are ongoing. The date when the
final decision will be made is still open. A particular goal is to
be able to start up production operations in Western Russia, where
the markets and the retail sector are developing at a rather rapid
clip.
Outlook for the future
The major factor hindering predictions of full-year earnings is
the trend in the international meat market, which is of great
significance to Atria. The producer prices of pork, especially,
have begun to rise. Although it increases the costs of meat
product manufacture, the expected improvement in the meat market
is a positive factor for Atrias earnings trend.
ATRIA GROUP PLC
Seppo Paatelainen
President
DISTRIBUTION
Helsinki Exchanges
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Interim reports are mailed upon request and are available on our
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