25.10.2006 08:30

* Group turnover was EUR 805.0 million (EUR 717.0 million), growth +12.3 per
* Operating profit was EUR 23.7 million (EUR 29.8 million) and profit before
taxes EUR 19.6 million (EUR 28.9 million).
* Earnings per share amounted to EUR 0.58 (EUR 0.96).

Review Q3/2006:

Atria Group's third quarter turnover was EUR 281.7 million, which represents an
increase of 13.5% compared to the corresponding period last year (January-
September 12.3%). The operating profit amounted to EUR 12.7 million (EUR 13.9

Operating profit for Finnish operations reached last year’s level in the period
under review and amounted to EUR 11.3 million. Good domestic turnover and
earnings boosted positive development throughout the entire group.

In Sweden, operating profit for the period was EUR 3.4 million, with growth at
30.8% compared to the corresponding period last year.

In Russia, sales and earnings developed positively during the period. Earnings
turned positive during the period under review.

In the Baltic region, development of operations and reorganisation continued and
non-recurring items related to the takeover process depressed earnings.


In Finland, turnover amounted to EUR 173.4 million (January–September EUR 506.2
million), including growth of 7.0 per cent (January–September 8.0 per cent).
Operating profit for the period was EUR 11.3 million (January–September, EUR
22.4 million).

Sales and market share developed in a positive manner in all product groups
represented by Atria. The overall market share in Finland for the first nine
months was nearly 30 per cent. Summer sales exceeded expectations and Atria’s
market share in the important grill sausage segment was 45 per cent (weeks 18-
45). Sales of other grill products like skewers and retail-packed meat was also
excellent. In particular, sales for the Atria brand has increased heavily:
during the first nine months of the year, the success of the Atria brand has
been nearly triple compared to the overall market (Source: AC Nielsen)

The Nurmo pig slaughterhouse has been fully implemented and the slaughtering
capacity has been stabilised at around 3,500 pigs per day.

The construction of the Nurmo logistics centre expansion is progressing
according to plan. Implementation will start in January 2007. By June, the
expansion will operate at 40 per cent capacity and the project will be completed
in September 2007. The expansion of the logistics centre is the last step in
Atria’s extensive investment programme in Finland. Over the next few years,
investments will decrease considerably and the aim is to improve the operations
of existing production plants.

The integration of Liha ja Säilyke Oy’s operations and Atria’s meal solutions
business unit progressed according to plan. Liha ja Säilyke Oy’s dismissal
negotiations were completed in September. Sausage production will be transferred
from Forssa to Nurmo during 2007. Logistics, technical running, financial
administration and personnel management operations as well as sales and
marketing operations will be integrated into Atria’s corresponding operations.
The integration will lead to approximately two million euro in annual cost
savings. The number of dismissed employees was 51 of which 15 were clerical

Price increases were carried out in all product groups in September.


In Sweden, turnover amounted to EUR 87.8 million (January–September EUR 240.4
million), including growth of 5.9 per cent (January–September 1.1 per cent).
Operating profit for the period was EUR 3.4 million (January–September, EUR 5.7

In Sweden, sales for the period were a success. The sales of the Lithells brand
in the retail sector grew 11 per cent during the period compared to sales in the
previous quarter. Sales of all brands increased 5 per cent (Source: AC Nielsen).

The operating profit of Atria Sweden was 30,8 per cent higher than the operating
profit in the corresponding period of the previous year. During the period,
price increases were implemented in Sweden, which will become visible as
positive earnings development during the remainder of the year.

Svensk Snabbmat för Storkök AB, which specialises in local wholesale operations
strengthened its position in the Swedish market. Svensk Snabbmat för Storkök AB
and Matgruppen för Storkök i Norr AB signed an agreement on company
reorganisation, the result of which was the transfer of Matgruppen i Norr AB’s
stores to the ownership of Svensk Snabbmat för Storkök AB. At the same time, the
current store owners became shareholders in Svensk Snabbmat. Atria continues as
a majority shareholder in the company.

The combined 2005 turnover of the retail stores to be owned by Svensk Snabbmat
was in excess of SEK 500 million. As a result of the business deal, the annual
turnover of Svensk Snabbmat will increase to almost two billion kronas.
Following the re-organisation, Svensk Snabbmat will have a total of 18 offices
covering all of Sweden. The acquired companies will be consolidated into the
Atria Group from 1 November 2006.

Atria Concept AB’s operations and earnings developed in a positive direction in
all market areas.

In Sweden, Atria will continue investing in strengthening the Lithells and
Sibylla brands and on increasing the cost structure efficiency of core

Russia and the Baltic Countries

Turnover in Russia and the Baltic Countries during the review period amounted to
EUR 28.2 million (January–September EUR 76.9 million). Operating profit for the
period was EUR -2.0 million (January–September, EUR -4.4 million). In Russia,
earnings in August-September were already positive as non-recurring costs
related to the takeover process were only directed at July.

Atria’s sales have continued growing heavily in Russia. Pit-Product’s overall
market share in the St. Petersburg area was 25.7 per cent in June-August. Since
the beginning of the year, Pit-Product’s overall market share has increased
seven percentage points and Pit-Product has further strengthened its position as
the market leader in the St. Petersburg region. (Source: AC Nielsen)

Price increases were implemented during the period, which will have a positive
effect on the result during the rest of the year.

Operational reorganisation continued in the Baltic Countries during the review
period. The primary aim of the reform is to seek business operation growth as
well as to rapidly improved profitability for Atria’s operations in the Baltics.
Another aim is to seek synergy in our Baltic business operations, as well as
creating closer co-operation with Atria Group. The new operating method aims at
a radical improvement in business thinking, implementation of reforms and
particularly at cost efficiency. Non-recurring costs from the reorganisation
depressed earnings in the Baltic countries and the result was unprofitable
during the review period.

Atria integrated the business operations of AS Valga Lihatööstus (Estonia) and
UAB Vilniaus Mesa (Lithuania) into a joint business in the Baltics starting 5
September 2006.

Raimo Kirmanen, director in charge of Atria’s Baltic operations, is in charge of
Atria's organisation in the region. He is also the Managing Director of AS Valga
Lihatööstus and UAB Vilniaus Mesa.

Human Resources

In early 2006, Atria Group’s personnel numbered approximately 5,659 (4,238).


The investment in Nurmo’s logistics centre that will be completed in the spring
of 2007 continued during the period. No new large investments were initiated in
Finland during the period.

Group investments during the first nine months of the year were EUR 53.1 million
and during the review period EUR 15.3 million.


The company issued a EUR 40 million bond to institutional investors during the
review period. The loan was used to replace short-term financing.

The Board’s valid issue authorisations

The AGM 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 reconvenes year 2007.

A total of 1,100,000 of authorised A Series shares have been used.

Events occurring after the review period

The Board of Directors of Atria Group plc has accepted an extensive investment
programme to build a new logistics centre and meat production plant in Russia.
The new production plants will be built in the St. Petersburg area and will be
completed by the end of 2008. The value of the investment is approximately EUR
70 million.

In October 2006 the pig cutting operations in Nurmo started to work a double-

Mr Juha Ruohola (MSc (Agr. & For.), eMBA) has been appointed General Manager of
Pit-Product as of 1 November 2006. Mr Gennady Emelianov will remain General
Manager until 31 October 2006, after which date he will serve as a member on the
Board of Directors of Pit-Product and as Atria's advisor in Russia.

Seija Pietilä was appointed as the Group Vice-President of Human Resources in
the Atria Group, effective from 11 December 2006. She is responsible for human
resources management coordination, personnel development and consistent human
resources management practices at all Atria premises in Finland, Sweden, the
Baltic countries and Russia.

Outlook for the rest of the year

In Finland, Atria’s development during the rest of the year will continue to be
steady. Due to weak earnings early in the year, Atria Finland’s full-year
earnings are likely to remain below last year’s level.

In Sweden, Atria’s positive earnings development will also continue throughout
the year. Full-year operating profit is expected to be slightly better than last

Atria’s sales will continue growing heavily in Russia. Earnings for the last
three months of the year will be positive. Full-year earnings are expected to
remain in the red mainly due to non-recurring items implemented during the
second quarter.

Reorganisation continues in the Baltic countries. Due to non-recurring costs,
turnover will be negative and weaker than last year.

Key Indicators

EUR million                       1-9/06     1-9/05     1-12/05
Equity/share, €                    12,47      12,77       12,08
Interest-bearing liabilities       238,7      191,1       206,9
Interest-bearing assets             43,8       40,4        43,7
Equity ratio, %                     44,0       45,5        43,0
Gross investments                   53,1       68,1       107,3
Gross investments of turnover, %     6,6        9,5        11,0
Average personnel                  5 659      4 238       4 433



EUR million                          30.9.06           30.9.05          31.12.05

Non-current assets
 Property, plant and equipment         353.9             302.6             329.3
 Goodwill                               53.2              36.5              50.1
 Other intangible assets                22.4              21.5              22.7
 Loan assets and
 other receivables                       6.4               5.0               5.1
 Other financial assets                  6.6               6.3               5.8
Total                                  442.5             371.9             413.0

Current assets
 Inventories                            61.8              55.6              58.6
 Trade and other receivables           157.4             141.2             151.0
 Cash and cash equivalents              14.0              23.6              17.5
Total                                  233.2             220.4             227.1

Total assets                           675.7             592.3             640.1

Equity and liabilities
EUR million                          30.9.06           30.9.05          31.12.05

 Equity belonging to parent company’s
 shareholders                          276.7             249.4             254.8
 Minority interests                     20.4              20.0              20.2
Equity, total                          297.1             269.4             275.0

Long-term liabilities
 Interest-bearing liabilities          166.2              82.1             115.5
 Deferred tax liabilities               23.0              21.0              22.5
 Pension obligations                     0.3               0.4               0.4
Total                                  189.5             103.5             138.4

Current liabilities
 Interest-bearing liabilities           72.5             109.0              91.4
 Trade and other payables              116.6             110.4             135.3
Total                                  189.1             219.4             226.7

Total liabilities                      378.6             322.9             365.1

Equity and liabilities, total          675.7             592.3             640.1


EUR million                           7-9/06   7-9/05   1-9/06   1-9/05  1-12/05

Turnover                               281.7    248.2    805.0    717.0    976.9
Expenses                              -260.2   -226.3   -755.2   -663.3   -905.2
Depreciations                           -8.8     -8.0    -26.1    -23.9    -31.5

Operating profit                        12.7     13.9     23.7     29.8     40.2
* of turnover                            4.5      5.6      2.9      4.2      4.1

Income from associates                                     0.8      0.8      0.8
Financial income and
expenses                                -2.1     -0.2     -4.9     -1.7     -3.2

Profit before taxes                     10.6     13.7     19.6     28.9     37.8
* of turnover                            3.8      5.5      2.4      4.0      3.9

Income taxes                            -2.9     -3.8     -6.3     -7.9    -10.8

Profit for the period                    7.7      9.9     13.3     21.0     27.0
* of turnover                            2.7      4.0      1.7      2.9      2.8

Profit distribution for the period:
To parent company shareholders           7.2      9.6     12.7     20.3     26.2
To minority shares                       0.5      0.3      0.6      0.7      0.8
Total                                    7.7      9.9     13.3     21.0     27.0

Basic earnings/share,€                  0.33     0.45     0.58     0.96     1.24

Diluted earnings/share,€                0.33     0.45     0.58     0.96     1.24


EUR million

                          Equity belonging to the owners        Mino-    Equity,
                          of the parent company                 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    19.3   263.9

Translation differences                     -2.7            -2.7            -2.7
Profit for the period                               20.3    20.3     0.7    21.0
of dividends                                       -12.6   -12.6           -12.6

equity 30.9.2005            35.8   104.4    -2.2   111.4   249.4    20.0   269.4

equity 1.1.2006             35.8   104.4    -0.9   115.5   254.8    20.2   275.0

Translation differences                      0.9             0.9    -0.4     0.5
Profit for the period                               12.7    12.7     0.6    13.3
of dividends                                       -12.6   -12.6           -12.6
Equity issue                  1.9   19.0            20.9                    20.9

equity 30.9.2006            37.7   123.4     0.0   115.6   276.7    20.4   297.1


EUR million                           1-9/06            1-9/05           1-12/05

 Cash flow
 from operations                        20.0              26.6              59.3
 Financial items
 and taxes                              -8.9              -6.3             -12.5
Cash flow
from operations                         11.1              20.3              46.8

 Investments in tangible
 and intangible assets                 -53.2             -65.4             -98.3
 Investments                            -1.2              -2.7              -3.5
Cash flow
from investments                       -54.4             -68.1            -101.8

 Cash equity issue                      20.9
 Loans drawn down                       94.2              86.4              91.4
 Loans repaid                          -62.6             -15.0             -19.2
 Dividends paid                        -12.6             -12.6             -12.7
Cash flow
from financing                          39.9              58.8              59.5

Change in liquid funds                  -3.4              11.0               4.5


EUR million                           7-9/06   7-9/05   1-9/06   1-9/05  1-12/05

 Finland                               173.4    162.1    506.2    468.6    634.3
 Sweden                                 87.8     82.9    240.4    237.9    314.0
 Russia and Baltic                      28.2      6.9     76.9     21.1     42.7
 Eliminations                           -7.7     -3.7    -18.5    -10.6    -14.1
Total                                  281.7    248.2    805.0    717.0    976.9

Operating profit
 Finland                                11.3     11.2     22.4     25.1     31.6
 Sweden                                  3.4      2.6      5.7      5.4      7.1
 Russia and Baltic                      -2.0      0.1     -4.4     -0.7      1.5
Total                                   12.7     13.9     23.7     29.8     40.2


EUR million                          30.9.06           30.9.05          31.12.05

Debts for which collateral has been provided
in the form of mortgages and other securities
 Loans from financial
 institutions                           81.1              88.3              79.8
 Pension fund loans                      6.7               6.1               6.2
Total                                   87.8              94.4              86.0

Mortgages and other securities given
as comprehensive security
 Real-estate mortgages                  77.8              77.3              78.7
 Corporate mortgages                    43.9              43.4              44.2
 Other security                         46.2              45.5              47.3
Total                                  167.9             166.2             170.2

Guarantee engagements
not included in the balance sheet
 Unused limits                         102.6              81.4             107.8
 Guarantees                             19.8               3.1              13.5

Principles applied in preparing the interim report

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

This interim report is unaudited.

Board of Directors

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

Helsinki Stock Exchange
Principal media

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