28.4.2006 09:45


* Group turnover for the period was 244.9 million euro (221.7 million euro), 
  representing growth of 10.5 per cent
* Operating profit was 4.5 million euro during the period (6.3 million euro) 
  and profit before tax was 3.8 million euro (5.8 million euro)
* Earnings per share amounted to 0.13 euro (0.20 euro)

Group earnings were in line with expectations

Atria Group's first quarter turnover and earnings were at the expected level. 

The fact that the Easter season fell in the second quarter had a weakening 
effect on group earnings in Finland and Sweden.

The closing of the Kuopio pig slaughterhouse and combining its operations with 
the Nurmo slaughterhouse resulted in overlapping one-time costs during the 
first quarter.  

The company was not able to pass on the general increase in production 
investment costs in Sweden and Finland to sales prices in full.

The Baltic development programme progressed as planned, which was visible as 
improved earnings. 

In Russia, sales grew in line with expectations and resulted in positive 


Atria Group's supplier share continued developing positively and amounted to 29 
per cent (Source: AC Nielsen Scantrack YTD 2006). The most positive market 
share development was seen in poultry products and retail-packed meat.

The fact that the Easter season, when highly profitable products are in demand, 
fell in the second quarter had a weakening effect on first quarter earnings.

During the period the Kuopio pig slaughterhouse was closed and its operations 
were transferred to the Nurmo production plant, where a new pig slaughtering 
line worth 22 million euro was introduced. Pig slaughtering caused overlapping 
costs when both lines were in use during the implementation stage of the new 

During the first quarter Atria's procurement volumes for pork and beef have 
developed positively, the procurement volume for beef increased by nearly 7 per 
cent and the procurement volume for pork increased by over 13 per cent compared 
to last year.

Atria's convenience food and meat product operations were reorganised in 
Finland from the beginning of 2006. Atria's meal solutions became a new 
business unit that, in addition to Atria's operations, also comprise the 
operations of Atria's subsidiary Liha ja Säilyke Oy, located in Forssa. The 
management of Forssa's meat product operations also became the responsibility 
of Atria's meat product industry. These changes aim to further improve Atria's 
business renewal ability, profitability and business growth.

Atria has estimated that the effects of the news on avian influenza (bird flu) 
on poultry consumption will be limited. In January-March, the consumption of 
poultry decreased in Finland by 5 per cent compared to the corresponding period 
last year (Source: Suomen Gallup Elintarviketieto Oy).  Simultaneously, Atria's 
supplier volume in retail-packed poultry increased by more than 7 per cent 
(Source: AC Nielsen Scantrack YTD 2006). The decrease in consumption concerned 
mainly imported meat. The share of the poultry industry in Atria Group's 
turnover is below 10 per cent.

The construction and installation of the expansion of Nurmo's logistics centre 
are progressing according to schedule. The construction of the logistics centre 
began in July 2005 and the expansion should be completed and ready for use by 
the spring of 2007. The expansion investment for the logistics centre comes to 
approximately 37 million euro.

In Finland, the pressure to increase sales prices due to increased costs is 
strong. Atria has not yet been able to transfer the price increases to sales 
prices in full.


Lithells Group's first quarter sales and earnings were at anticipated levels. 
However, the fact that the Easter season fell in the second quarter weakened 
earnings when compared to the previous year.

During the review period Lithells AB's subsidiary Atria Concept AB expanded its 
operations to St. Petersburg, Russia, where eight Sibylla Is Inside sales 
counters were opened.

The price of meat raw material was still at a high level during the period. 
Prices are, however, expected to stabilise during the year.

Baltic States

In the Baltic States the turnover of Lithuanian operations decreased slightly 
due to the closing of the unprofitable meat cutting operations; however, 
earnings increased. The development programme has been forcefully pushed 
forward, which is visible as better cost control and a sales increase in meat 
products in particular. 

In Estonia, development of primary production has continued through the 
expansion of pig houses. This expansion and development investments will be 
completed by the end of this year. Sales of retail-packed meat developed 
positively during the period.

Traditionally, sales has been weak in the Baltic markets during the first 
quarter. The demand peak in meat products is seen in the summer.


Pit-Product's turnover developed positively during the period and earnings were 
also positive despite the traditionally slow demand in the first quarter and 
the long local holidays in January.

The takeover process has progressed quickly and will be completed soon. A 
temporary increase in production capacity and the design project for the new 
production plant and logistics centre were the main projects in Russia during 
the period. 


Matti Tikkakoski, MSc (Econ.), took over as the new President & CEO of the 
group on 1 February 2006. Christer Åberg took over as the Managing Director of 
Lithells AB on 1 April 2006. Atria's meat product industry director, Juha 
Ruohola, was appointed as the Director of the Pit-Product takeover process.  
During the period Atria Group's personnel numbered 5,293.


The pig slaughterhouse expansions, which cost 22 million euro during the 
period, was completed at the beginning of April. The implementation of the new 
expansion continues during the second quarter. Another major construction 
project concerns the expansion of the logistics centre, which has progressed 
according to plan and will be opened in the spring of 2007.

The approximately 70 million euro investment programme in Nurmo will be 
completed during 2007. Of this investment, 20 million euro is directed at 2006 
and the remaining 10 million euro at 2007.

In Russia, the possibility to build a new production plant and logistics centre 
in St. Petersburg has been investigated. The results will be reported later 
this year.


During the period interest-bearing liabilities increased by 16.8 million euro 
(+8.1%). Financing has been carried out by utilising the parent company's 
financing limits.

The Board's valid issue authorisations 
The AGM has authorised the Board of Directors  to decide on increasing the 
company's share capital by means of one or more subscription issues, so that 
the maximum number of the company's A Series shares, with a nominal value of 
EUR 1.70, should not exceed a total of 4,218,545 shares, thereby increasing the 
company's share capital by a maximum of EUR 7,171,526.50. 

The authorisation is valid for one year from the empowerment decision taken by 
the AGM, until the AGM arranged for 3 May 2006. The Board of Directors has 
decided to present to the AGM a similar authorisation request, valid for one 
year from the empowerment decision.

Changes in the operating environment

During the period avian influenza (bird flu) has been found around Europe. In 
Finland, the issue was visible in the news in early 2006. This lead, on the one 
hand, to a slight, approximately 5 per cent, decrease in the consumption in 
poultry compared to the year before, and, on the other hand, to a heavy 
decrease in poultry imports. The industry and authorities have emphasised that 
the Finnish poultry production chain is safe. In Finland, productive animals 
are kept indoors, completely isolated from wild birds.	

According to a poll carried out in week 9 by Suomen Gallup Elintarviketieto, 99 
per cent of respondents believed that Finnish poultry is safe for food. 61 per 
cent found it very safe, while 52 per cent felt this way in early March. 
Consumers are also increasingly satisfied with the steps taken by the meat 
industry and authorities to ensure safety. According to research, 95 per cent 
of Finns eat chicken and 74 per cent eat turkey. More than four out of five 
consumers continue to eat poultry products as before. There are more people 
that have increased than decreased their consumption. (Source: Suomen Gallup 
Elintarviketieto, press release 13 April 2006).

Outlook for the rest of the year

Completion of the pig slaughterhouse expansion so that the operations can be 
introduced fully is expected to take place by the beginning of the third 

The integration project of Liha ja Säilyke Oy's and Atria's convenience food 
production with all its changes will depress earnings slightly in the second 

The effects of the news on avian influenza (bird flu) on domestic poultry 
consumption are limited. We expect demand to decrease by only a couple of 
percentage points during the rest of the year. Research into improving the 
profitability of the loss-making turkey operations will continue.

Domestic sales in the main product groups will continue developing positively, 
but at the same time the pressure to raise sales prices will increase strongly 
due to increased raw-material costs. The earnings of Atria's domestic 
operations are expected to be slightly weaker during the second quarter than in 
the corresponding period last year. 

In Sweden, Lithells AB's operations will continue stably and the full year 
earnings are expected to be at last year's level. The increase in 
prices of meat raw materials is expected to stabilise during the year.

Pit-Product sales will continue developing positively and turnover is expected 
to amount to approximately 75 million euro in 2006. Operating result in Russia 
will be slightly in the black.

Baltic operations are expected to continue developing positively and full year 
earnings are expected to improve slightly from last year.

mill. EUR                         1-3/2006       1-3/2005       1-12/2005
Equity/share, €                    12.21          12.71          12.08
Interest-bearing liabilities       223.6          146.9          206.9
Equity ratio, %                     43.4           50.1           43.0
Gross investments                   13.9           23.0          107.3
Gross investments of turnover, %     5.7           10.4           11.0
Average personnel                  5,293          4,090          4,433

Principles applied in preparing the interim report

This interim report has been prepared in accordance with IAS 34 Interim 
Financial Reporting. The firm has applied the same principles in preparing this 
interim report as in preparing the 2005 annual financial statements. This 
interim report is unaudited.


EUR million                          31-3-06           31-3-05          31-12-05

Non-current assets
Property, plant and equipment          332.7             276.4             329.3
Goodwill                                52.0              34.5              50.1
Other intangible assets                 22.7              21.0              22.7
Loan assets and
other receivables                        5.6               4.6               5.1
Other financial assets                   6.3               7.3               5.8

Total                                  419.3             343.8             413.0

Current assets
Inventories                             64.5              54.4              58.6
Trade and other receivables            143.8             127.2             151.0
Cash and cash equivalents               13.2              10.7              17.5

Total                                  221.5             192.3             227.1

Total assets                           640.8             536.1             640.1

Equity and liabilities
EUR million                          31-3-06           31-3-05          31-12-05

Equity belonging to parent company’s
shareholders                           257.5             248.7             254.8
Minority interests                      20.3              19.5              20.2

Equity, total                          277.8             268.2             275.0

Long-term liabilities
Interest-bearing liabilities           125.2              84.5             115.5
Deferred tax liabilities                22.9              18.5              22.5
Pension obligations                      0.4               0.4               0.4

Total                                  148.5             103.4             138.4

Current liabilities
Interest-bearing liabilities            98.4              62.3              91.4
Trade and other payables               116.1             102.2             135.3

Total                                  214.5             164.5             226.7

Total, liabilities                     363.0             267.9             365.1

Equity and liabilities, total          640.8             536.1             640.1


EUR million                           1-3/06            1-3/05           1-12/05

Turnover                               244.9             221.7             976.9
Expenses                              -231.8            -207.4            -905.2
Depreciations                           -8.6              -8.0             -31.5

Operating profit                         4.5               6.3              40.2
* of turnover                            1.8               2.8               4.1

Income from associates                   0.5               0.3               0.8
Financial income and
expenses                                -1.2              -0.8              -3.2

Profit before taxes                      3.8               5.8              37.8
* of turnover                            1.6               2.6               3.9

Income taxes                            -1.0              -1.6             -10.8

Profit for the period                    2.8               4.2              27.0
* of turnover                            1.1               1.9               2.8

Profit distribution for the period:
To parent company shareholders           2.8               4.2              26.2
To minority shares                                                           0.8
Total                                    2.8               4.2              27.0

Basic earnings/share, €                 0.13              0.20              1.24

Diluted earnings/share, €               0.13              0.20              1.24


EUR million
          Equity belonging to the owners of the parent company
                                                                Mino     Equity,
                                                                rity's   total
                          Share  Share   Trans  Retained   Total
                          equity premium lation earnings
equity 1-1-2005             35.8   104.4     0.5   103.7   244.4    19.5   263.9
Translation differences                      0.1             0.1             0.1
Profit for the period                                4.2     4.2             4.2

equity 31-3-2005            35.8   104.4     0.6   107.9   248.7    19.5   268.2

equity 1-1-2006             35.8   104.4    -0.9   115.5   254.8    20.2   275.0
Translation differences                     -0.1            -0.1     0.1     0.0
Profit for the period                                2.8     2.8             2.8

equity 31-3-2006            35.8   104.4    -1.0   118.3   257.5    20.3   277.8


EUR million                           1-3/06            1-3/05           1-12/05

Cash flow
from operations                         -5.6              -2.1              59.3
Financial items
and taxes                               -1.0              -1.3             -12.4

Cash flow
from operations                         -6.6              -3.4              46.9

Investments in tangible
and intangible assets                  -14.0             -23.0             -98.3
Investments                             -0.6              -2.5              -3.5

Cash flow
from investments                       -14.6             -25.5            -101.8

Loans drawn down                        28.8              32.9              91.4
Loans repaid                           -11.9              -6.0             -19.2
Dividends paid                                                             -12.7

Cash flow
from financing                          16.9              26.9              59.5

Change in liquid funds                  -4.3              -2.0               4.6


EUR million                  1-3/06      %     1-3/05      %    1-12/05      %


Finland                       156.8     64.0    144.7     65.3    634.3     64.9
Sweden                         70.5     28.8     74.0     33.4    314.0     32.1
Russia                         15.4      6.3
Others and eliminations         2.2      0.9      3.0      1.4     28.6      2.9
Total                         244.9    100.0    221.7    100.0    976.9    100.0

Operating profit

Finland                         4.0     88.9      5.8     92.1     31.6     78.6
Sweden                          0.3      6.7      0.7     11.1      7.1     17.7
Russia                          0.3      6.7
Others and eliminations        -0.1     -2.2     -0.2     -3.2      1.5      3.7
Total                           4.5    100.0      6.3    100.0     40.2    100.0


EUR million                          31-3-06           31-3-05          31-12-05

Debts for which collateral has been provided
in the form of mortgages and other securities

Loans from financial
institutions                            86.4              76.5              79.8
Pension fund loans                       6.3               6.1               6.2
Total                                   92.7              86.0              86.0

Mortgages and other securities given
as comprehensive security
Real-estate mortgages                   77.6              77.5              78.7
Corporate mortgages                     44.5              43.7              44.2
Other security                          42.7              40.6              47.3
Total                                  164.8             161.8             170.2

Guarantee engagements
not included in the balance sheet

Unused limits                           97.6              85.5             107.8

Guarantees                              13.7               3.1              13.5

For additional information, please contact Mr Matti Tikkakoski, President & 
CEO, tel. +358 50 2582.


Matti Tikkakoski
President & CEO


Helsinki Stock Exchange
Principal media

The interim report will be mailed to you upon request and is also available on 
our website at