Newsroom

ATRIA GROUP'S EBIT IMPROVED

28.4.2010 08:00
INTERIM REPORT OF ATRIA PLC 1 January - 31 March 2010                           


ATRIA GROUP'S EBIT IMPROVED                                                     

- The Group's net sales decreased by 1.5% and EBIT improved by EUR 1.4 million  
year-on-year.                                                                   
- The decrease in net sales was mainly due to discontinued business operations  
in Scandinavia.                                                                 
- The Group's EBIT includes EUR 2.0 million of non-recurring costs (EUR 2.7     
million) relating to the shutdown of the Årsta plant in Sweden.                 
- Atria Russia's EBIT improved significantly compared with Q1/2009.             



Atria Group:                                                                    
                                Q1/        Q1/                                  
EUR million                    2010       2009      2009                        
----------------------------------------------------------                     
Net sales                     305.9      310.7   1,316.0
EBIT                            1.0       -0.4      27.5  
EBIT %                          0.3       -0.1       2.1         
Profit before taxes            -1.8       -5.5      16.5                        
Earnings per share, EUR       -0.07      -0.14      0.25                        


Review Q1/2010                                                                  

Atria Group's Q1/2010 net sales fell slightly short of the previous year's      
level. The discontinuation of the salad and sandwich business (Lätta Måltider)  
in June 2009 and decreased sales of consumer-packed meat in Sweden were the most
important reasons for the slowing of the development of net sales. Despite the  
effects of the recession, net sales in Finland were nearly at the previous      
year's level. In Russia, net sales increased year-on-year, thanks to the        
strengthened rouble. Calculated in local currency, Atria Russia's net sales were
at the previous year's level.                                                   

The Group's EBIT was EUR 1.0 million (EUR -0.4 million). Atria Finland posted   
EBIT of EUR 4.9 million (EBIT % 2.7), and Atria Scandinavia's EBIT without      
non-recurring items stood at EUR 2.6 million (EBIT % 2.7). These are            
satisfactory figures, because the lower sales volume that is typical for Q1     
weakens profitability. In addition, higher energy costs and lower sales prices  
weighed down Atria's performance in Finland in Q1/2010.                         

Atria Scandinavia's result includes EUR 2.0 million of non-recurring costs      
relating to the shutdown of the Årsta plant in Sweden. During the review period,
Atria Scandinavia launched an efficiency programme and decided to discontinue   
the production of consumer-packed meat and close the Årsta production plant in  
Stockholm.                                                                      

Atria Russia's result developed as planned. The Q1/2010 EBIT, EUR -2.3 million, 
was clearly better than the Q1/2009 EBIT, EUR -4.3 million without non-recurring
items. Atria Baltic's performance during the first part of the year was poor.   

The Group's net debts increased in Q1 by EUR 22.9 million. This was partly due  
to the strengthening of the Swedish krona and Russian rouble against the euro.  





Atria Finland 1 January - 31 March 2010                                         

                                Q1/        Q1/                                  
EUR million                    2010       2009       2009                       
----------------------------------------------------------                      
Net sales                     179.1      181.9      781.9                       
EBIT                            4.9        7.1       42.9                       
EBIT %		                2.7        3.9        5.5    
                                     
                                                                                
Atria Finland's Q1 net sales were nearly at the same level year-on-year. Because
of the recession, the consumption and production of meat continued to decrease  
during the first months of the year (Source: Finland's TNS Gallup Agriculture   
Unit, January-February 2010). Atria Finland's net sales have developed          
satisfactorily in the declining market conditions.                              

EBIT for the first quarter of the year was lower compared with Q1/2009. The     
decrease was caused by higher energy costs and salary increases carried out in  
2009.  In addition, decreases in sales prices have weighed down the performance.
Compared with Q1/2009, consumer prices of meat and meat products have fallen by 
10 per cent on average. (Source: Finland's TNS Gallup Agriculture Unit, 2/2010).

In addition to the decline of demand, overall production of meat has been       
restrained by the decrease in producer prices. The number of slaughtered pigs   
has decreased by about 10 per cent year-on-year.                                

Atria has succeeded well in adapting its poultry production to the EU fresh meat
directive. Inventory levels are well-balanced in relation to sales.             

If the industrial action initiated in April in the food sector continues for a  
longer period, it will affect Atria Finland's sales and performance             
significantly in the second quarter of the year.                                

                                                                                
Atria Scandinavia 1 January - 31 March 2010                                     


                                Q1/        Q1/                                  
EUR million                    2010       2009       2009                       
----------------------------------------------------------                      
Net sales                      95.0       98.8      405.2                       
EBIT                	        0.6        1.2       10.0                        
EBIT %                          0.6        1.2        2.5                       
                                                                                

Atria Scandinavia's net sales fell by 3.8%. This was mainly caused by the       
discontinuation of the salad and sandwich business in June 2009 and decreased   
sales of consumer-packed meat.                                                  

The Q1/2010 EBIT includes EUR 2.0 million of non-recurring costs relating to the
shutdown of the Årsta plant. EBIT without non-recurring costs is EUR 2.6 million
(EUR 1.2 million). The favourable development is the result of higher margins.  
These in turn result from the strengthening of the Swedish krona and its effect 
on the prices of imported raw materials. In addition, the efficiency programmes 
initiated last year and a better sales mix have improved the performance.       

During the review period, Atria Scandinavia launched an efficiency programme and
is now focusing on manufacturing further processed products. Atria Scandinavia  
is discontinuing consumer-packed meat production and closing down the Årsta     
plant in Stockholm. The loss-making business will be discontinued and the plant 
closed by the end of October. The reorganisation will affect 49 employees at the
Årsta plant.                                                                    

The discontinuation of consumer-packed meat production will cut Atria           
Scandinavia's annual net sales by about EUR 45 million and improve its EBIT by  
about EUR 0.5 million a year. The shutdown of the production plant will cause   
non-recurrent costs of up to EUR 5 million in 2010, of which EUR 2 million are  
included in the figures for Q1/2010. Of the total amount, about EUR 1.5 million 
have an effect on cash flow. Atria Scandinavia will focus on its core business, 
including the manufacturing of cooking sausages, cold cuts,                     
convenience foods and delicatessen products.                                    

The market shares of cold cuts and cooking sausages have remained stable in the 
retail trade. The size of the market in Food Service products has decreased.    
Overall market growth has still been sluggish in Sweden.                        


Atria Russia 1 January - 31 March 2010                                          

                                Q1/        Q1/                                  
EUR million                    2010       2009       2009                       
----------------------------------------------------------                      
Net sales                      28.9       26.5      113.0                       
EBIT                           -2.3       -7.0       -9.8                       
EBIT %                         -8.0      -26.4       -8.7                       


Atria Russia's net sales increased in Q1 by 9.1% year-on-year. This was due to  
the strengthening of the Russian rouble against the euro. In the local currency,
net sales were at the same level as in Q1/2009. The overall market began to     
decline last year, due to weakened sales of meat products in the Russian retail 
trade. The abovementioned market fell by about ten per cent in volume in 2009   
both in St Petersburg and Moscow. In the first quarter of 2010, the market has  
still declined by about ten per cent (Source: Business Analytica 1.-2.2010).    

Atria's market share in the St Petersburg area retail trade remained at a good  
level of about 20 per cent. The market share in Moscow was around two per cent  
(Source: Business Analytica 1-2.2010). The sales and marketing efforts related  
to Campomos products, initiated in 2009, have continued as planned. In Q2/2010, 
Atria will be launching re-closable Campomos cold cut packages in Moscow.       

EBIT for the period was negative, EUR -2.3 million (EUR -4.3 million without    
non-recurring costs). This was the result of low sales volumes of Campomos      
products, marketing efforts promoting the Campomos brand and start-up costs     
relating to the Gorelovo plant.                                                 

If the rouble holds steady, there will be no significant pressure for raw       
material prices to increase. Atria Russia is investing heavily in the           
development of primary production. Atria and its Danish partners have started an
important project in Russia to ensure the availability of local pork.           

Atria Plc has signed a shareholder agreement with the Danish Dan Invest A/S,    
concerning pork production in Russia. Atria has a 26 per cent holding in the    
Russian company OOO Dan Invest, owner of two pig farms: one in Krasnodar and one
in Tambov. The production will begin in 2010-2011, and the estimated annual     
production volume is 180,000 slaughter pigs by 2013. The value of the project is
about EUR 40 million. Atria is investing EUR 3 million in the project now and a 
further EUR 2 million when an agreed production volume has been achieved. In    
order to guarantee the availability of locally produced pork, Atria has also    
signed a delivery agreement with OOO Dan Invest. All the agreements relating to 
the project were signed in March 2010.                                          

The new Gorelovo production plant was inaugurated on 20 April 2010. Commercial  
sales of products will begin in May 2010. The new plant is the most modern meat 
product plant in Russia, and it will boost Atria Russia's competitiveness. The  
start-up of the new plant will make it possible to make more efficient use of   
the synergies of the St Petersburg and Moscow plants. The fixed costs of the new
plant amount to approximately EUR 4 million a year. The start-up of production  
in the new plant will also cause some additional costs.                         

Atria Russia's full-year business result is not expected to be profitable yet in
2010.                                                                           


Atria Baltic 1 January - 31 March 2010                                          

                                Q1/        Q1/                                  
EUR million                    2010       2009       2009                       
----------------------------------------------------------                      
Net sales                       7.6        8.8       37.5                       
EBIT                           -1.2       -1.0      -12.6                       
EBIT %                        -15.8      -11.4      -33.6                       


Atria's net sales in Estonia fell slightly short year-on-year. The development  
of net sales was weighed down by continually declining overall demand in Estonia
during the first quarter. The decline of the Estonian overall market is expected
to end during the first half of the year, and the purchasing power of consumers 
is expected to revive in the consumer goods retail sector in the latter half of 
the year. The performance of the Estonian operations was unsatisfactory. The    
losses resulted from weak sales and costs associated with efficiency improvement
programmes.                                                                     

Consumer-packed meat has considerably increased its market share, but Atria has 
lost some of its market share in meat products (Source: AC Nielsen).            

In January 2010, Atria announced that it is launching an efficiency improvement 
programme in Estonia, seeking to achieve annual savings of approximately EUR 1  
million in its cost structure. In order to achieve the savings, Atria is closing
the Ahja plant and centralising the production to the Valga and Vastse-Kuuste   
production plants.  Approximately 40 employees will be laid off from the Ahja   
plant. The measures relating to the centralisation of operations will be        
completed in May. Impairments of EUR 0.8 million for fixed assets were recorded 
for Q4/2009 relating to the shutdown of the Ahja plant.                         

In addition, an efficiency improvement programme was launched in Estonia that   
concerns the entire business process and aims for better cost-efficiency in all 
operations.                                                                     

Rauno Väisänen was appointed Managing Director of Atria Estonia effective 1     
February 2010.                                                                  


Events occurring after the period                                               

Atria Russia's new factory in Gorelovo was inaugurated on 20 April 2010.        


Investments                                                                     

The Group's investments during the period totalled EUR 15.9 million (EUR 8.6    
million). Most of the investments are related to the completion of the new      
Gorelovo production plant.                                                      


Personnel                                                                       

The Group had an average of 5,853 (6,532) employees during the period.          

Personnel by business area:                                                     

Atria Finland     2,123 (2,181)                                                 
Atria Scandinavia 1,255 (1,635)                                                 
Atria Russia      2,000 (2,088)                                                 
Atria Baltic        475   (628)                                                 


Atria Plc's administration                                                      

Atria Plc's Board of Directors now has the following membership: Chairman Martti
Selin; Vice Chairman Timo Komulainen; members Tuomo Heikkilä, Esa Kaarto, Runar 
Lillandt, Harri Sivula and Matti Tikkakoski.                                    


Financing                                                                       

The Group's financial position has continued to be strong. On 31 March 2010, the
amount of undrawn committed credit facilities stood at EUR 147 million.         


Short-term business risks                                                       

No significant changes have occurred in Atria Group's short-term business risks 
compared with the risks described in the financial statements for 2009.         

If the industrial action in the Finnish food industry continues for a longer    
period, it can hamper deliveries and sales development of early summer season   
products.                                                                       


Outlook for the future                                                          

Market conditions are expected to remain challenging in 2010. The industrial    
action in the Finnish food sector will affect Atria Finland's sales and         
performance in the second quarter of the year. In addition, the company's       
decision to discontinue production of consumer-packed meat in Sweden will cut   
Atria Scandinavia's annual net sales in the second half of the year. The Group's
net sales in 2010 are therefore forecast to remain at the 2009 level. EBIT is   
expected to increase in 2010.                                                   


Board Authorisations                                                            

The General Meeting of 29 April 2009 authorised the Board of Directors to       
decide, on one or several occasions, on an issue of, at maximum, 12,800,000 new 
A shares or A shares that may be held by the company, through a share issue     
and/or by granting option rights or other special rights entitling one to shares
as referred to in Chapter 10, Section 1 of the Companies Act. The authorisation 
shall supersede all valid share issue authorisations, including authorisation   
for a reserve increase, and be valid until the closing of the next Annual       
General Meeting, but no later than until 30 June 2010.                          


Purchase and transfer of treasury shares and valid authorisations               

The General Meeting of 29 April 2009 authorised the Board of Directors to decide
on the purchase of up to 2,800,000 A shares of the company with the company's   
unrestricted equity. The maximum amount of the Series A shares to be acquired is
less than 10 per cent of all the Company's shares. The authorisation shall be   
valid until the closing of the next Annual General Meeting, but no later than   
until 30 June 2010.                                                             

In 2008, based on the authorisation issued by the General Meeting of 29 April   
2008, Atria Plc's Board of Directors decided to purchase up to 300,000 A shares 
of the company.  In accordance with the authorisation, the shares to be         
purchased were intended to be used as consideration in possible company         
acquisitions or other arrangements relating to the company's business, for the  
financing of investments, for the implementation of the company's incentive     
programme, for improvement of the company's capital structure, or to be kept by 
the company, otherwise assigned or cancelled. The acquisition of treasury shares
began on 29 September 2008 and ended on 3 February 2009.                        

As of 31 March 2010, Atria Plc held a total of 113,712 treasury shares.         


KEY INDICATORS                                                                  

EUR million                                             1-3/10   1-3/09  1-12/09

Shareholders´ equity                                                            
per share, EUR                                           15.60    14.86    15.39
Interest-bearing                                                                
liabilities                                              430.2    453.8    425.8
Equity ratio, %                                           40.2     39.1     39.7
Gearing, %                                                97.1    107.6     97.5
Net gearing, %                                            93.3    103.2     89.4
Gross investments to                                                            
fixed assets                                              15.9      8.6     33.0
% of Net sales                                             5.2      2.8      2.5
Average FTE                                              5 853    6 532    6 214


Accounting principles                                                           

This interim report was prepared in accordance with the IAS 34 Interim Financial
Reporting standard. In preparing this interim report, Atria has applied the same
principles as in preparing the 2009 annual financial statements. However, as of 
January 2010, the Group has adopted the new and revised standards published by  
the IASB that are included in the accounting principles for the 2009 annual     
financial statements and have not had any material impact on the figures        
presented for the period.                                                       

The principles and formulae for the calculation of key indicators have not      
changed, and they are presented in the 2009 annual financial statements.        

The figures given in the interim report are unaudited.                          


ATRIA PLC                                                                       

CONSOLIDATED STATEMENT OF FINANCIAL POSITION                                    

Assets                                                                          

EUR million                                            31-3-10  31-3-09 31-12-09

Non-current assets                                                              
 Property, plant and                                                            
 equipment                                               482.2    479.5    469.1
 Goodwill                                                165.0    150.4    157.8
 Other intangible                                                               
 assets                                                   72.6     69.0     70.0
 Investments in joint ventures                                                  
 and associates                                           10.1      6.3      7.4
 Other financial                                                                
 assets                                                    2.3      2.3      2.3
 Loans and other                                                                
 receivables                                              20.7     15.1     14.5
 Deferred tax assets                                       7.5      4.8      6.7
Total                                                    760.4    727.4    727.8

Current assets                                                                  
 Inventories                                             108.9    114.9    115.6
 Trade and other                                                                
 receivables                                             207.2    207.8    212.6
 Cash and cash                                                                  
 equivalents                                              16.8     18.9     35.3
Total                                                    332.9    341.6    363.5

Non-current assets                                                              
held for sale                                             10.2     11.1     10.0

Total assets                                           1 103.5  1 080.1  1 101.3


Equity and liabilities                                                          

EUR million                                            31-3-10  31-3-09 31-12-09


Equity                                                   443.0    421.6    436.9

Non-current liabilities                                                         
 Interest-bearing financial                                                     
 liabilities                                             316.6    338.1    318.9
 Deferred tax                                                                   
 liabilities                                              42.3     41.6     41.2
 Other non-interest-bearing                                                     
 liabilities                                               1.8      0.5      1.3
Total                                                    360.7    380.2    361.4

Current liabilities                                                             
 Interest-bearing financial                                                     
 liabilities                                             113.6    115.6    106.9
 Trade and                                                                      
 other payables                                          186.2    162.7    196.1
Total                                                    299.8    278.3    303.0

Total liabilities                                        660.5    658.5    664.4

Total equity and                                                                
liabilities                                            1 103.5  1 080.1  1 101.3


CONSOLIDATED INCOME STATEMENT                                                   

EUR million                                             1-3/10   1-3/09  1-12/09

Net sales                                                305.9    310.7  1 316.0

Cost of goods sold                                      -271.8   -279.0 -1 151.0
Gross profit                                              34.1     31.7    165.0
* of Net sales                                            11.1     10.2     12.5

Sales and                                                                       
marketing costs                                          -18.6    -17.1    -77.7
Administration costs                                     -12.3    -13.9    -47.7
Other income                                               0.8      1.0      4.6
Other expenses                                            -3.0     -2.1    -16.7
EBIT                                                       1.0     -0.4     27.5
* of Net sales                                             0.3     -0.1      2.1

Finance income and costs                                  -3.4     -5.3    -12.4
Share of the result of                                                          
associates                                                 0.6      0.2      1.4
Profit before tax                                         -1.8     -5.5     16.5
* of Net sales                                            -0.6     -1.8      1.3

Income tax expense                                                  1.5     -9.1
Profit                                                                          
for the period                                            -1.8     -4.0      7.4
* of Net sales                                            -0.6     -1.3      0.6

Profit attributable to:                                                         
Owners of the parent                                      -2.0     -4.1      7.0
Non-controlling interests                                  0.2      0.1      0.4
Total                                                     -1.8     -4.0      7.4

Basic earnings/                                                                 
share, EUR                                               -0.07    -0.14     0.25

Diluted earnings/                                                               
share, EUR                                               -0.07    -0.14     0.25


CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME                                  

EUR million                                             1-3/10   1-3/09  1-12/09

Profit for the period                                     -1,8     -4,0      7,4

Other comprehensive income after tax:                                           
Cash flow hedging                                         -0.6              -1.4
Equity hedging                                                              -0.3
Translation                                                                     
differences                                                8.5     -8.8      2.5
Total comprehensive income                                                      
for the period                                             6.1    -12.8      8.2

Total comprehensive income attributable to:                                     
Owners of the                                                                   
parent                                                     5.9    -12.9      7.8
Non-controlling interests                                  0.2      0.1      0.4
Total                                                      6.1    -12.8      8.2


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY                                     

EUR million     Equity belonging to the shareholders of the         Non-  Equity
                parent company                                      cont  total 
                                                                    roll        
                Share Share   Other Inv- Own    Trans  Retain Total ling        
                ca    premium reser non- shares lation ed           inte        
                pit           ves   rest-       diff-  earn         rests       
                al                 equity              ings                     
                                    fund                                        
Equity                                                                          
1-1-2009          48.1  138.5   0.1 110.3  -0.5  -33.4  170.5 433.5   1.4  434.9

Periods comprehensive                                                           
income                                            -8.8   -4.1 -12.9   0.1  -12.8
Share-based                                                                     
payment                               0.2                       0.2          0.2
Acquired treasure                                                               
shares                                     -0.7                -0.7         -0.7
                                                                                
Equity                                                                          
31-3-2009         48.1  138.5   0.1 110.5  -1.2  -42.3  166.4 420.1   1.5  421.6

Equity                                                                          
1-1-2010          48.1  138.5  -1.7 110.6  -1.3  -31.0  171.9 435.1   1.8  436.9

Periods comprehensive                                                           
income                         -0.6                8.5   -2.0   5.9   0.2    6.1

Equity                                                                          
31-3-2010         48.1  138.5  -2.3 110.6  -1.3  -22.5  169.9 441.0   2.0  443.0


CONSOLIDATED CASH FLOW STATEMENT                                                

EUR million                                            1-3/10   1-3/09   1-12/09

Cash flow from operating activities                                             
 Operating activities                                     2.7     -8.7      92.7
 Financial items                                                                
 and taxes                                               -6.8     -7.0     -31.0
Net cash flow from operating                                                    
activities                                               -4.1    -15.7      61.7

Cash flow from investing activities                                             
 Tangible and intangible                                                        
 assets                                                 -12.4     -8.5     -32.3
 Investments                                             -1.2     -1.7      -1.8
Net cash used in investing                                                      
activities                                              -13.6    -10.2     -34.1

Cash flow from financing activities                                             
 Loans drawn down                                         2.7     27.3      41.8
 Loans repaid                                            -3.5    -19.0     -64.8
 Dividends paid                                                             -5.7
 Acquired treasury                                                              
 shares                                                           -0.7      -0.7
Net cash used in financing                                                      
activities                                               -0.8      7.6     -29.4

Change in liquid funds                                  -18.5    -18.3      -1.8


OPERATING SEGMENTS                                                              

EUR million                                             1-3/10   1-3/09  1-12/09

Net sales                                                                       
 Finland                                                 179.1    181.9    781.9
 Scandinavia                                              95.0     98.8    405.2
 Russia                                                   28.9     26.5    113.0
 Baltics                                                   7.6      8.8     37.5
 Eliminations                                             -4.7     -5.3    -21.6
Total                                                    305.9    310.7  1 316.0

EBIT                                                                            
 Finland                                                   4.9      7.1     42.9
 Scandinavia                                               0.6      1.2     10.0
 Russia                                                   -2.3     -7.0     -9.8
 Baltics                                                  -1.2     -1.0    -12.6
 Unallocated                                              -1.0     -0.7     -3.0
Total                                                      1.0     -0.4     27.5

ROCE *                                                                          
 Finland                                                 9.9 %    8.9 %   10.2 %
 Scandinavia                                             3.7 %    3.7 %    4.0 %
 Russia                                                 -3.5 %   -9.1 %   -6.9 %
 Baltics                                               -28.5 %   -8.2 %  -26.5 %
 Group                                                   3.3 %    3.6 %    3.1 %

* ROCE % =                                                                      
  EBIT, 12mr / Capital employed, 12 mr avg *100                                 

Investments                                                                     
 Finland                                                   2.2      2.9     14.2
 Scandinavia                                               1.8      1.2      5.3
 Russia                                                   11.8      3.9     11.9
 Baltics                                                   0.1      0.6      1.6
Total                                                     15.9      8.6     33.0

Depreciations                                                                   
 Finland                                                   7.3      7.5     29.7
 Scandinavia                                               2.9      2.6     12.0
 Russia                                                    1.7      1.6      6.4
 Baltics                                                   0.8      0.8     10.5
Total                                                     12.7     12.5     58.6


CONTINGENT LIABILITIES                                                          

EUR million                                            31-3-10  31-3-09 31-12-09

Debts with mortgages or other collateral                                        
given as security                                                               
 Loans from financial                                                           
 institutions                                              5.5      8.0      6.0
 Pension fund loans                                        4.5      3.9      4.2
Total                                                     10.0     11.9     10.2

Mortgages and other securities given as                                         
comprehensive security                                                          
 Real estate                                                                    
 mortgages                                                 6.7      6.7      6.7
 Corporate mortgages                                       1.2      4.6      3.1
Total                                                      7.9     11.3      9.8

Guarantee engagements not included                                              
in the balance sheet                                                            
 Guarantees                                                0.8     12.9      0.8



ATRIA PLC                                                                       
Board of Directors                                                              

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

DISTRIBUTION                                                                    
Nasdaq OMX Helsinki Ltd                                                         
Major media                                                                     
www.atriagroup.com                                                              

The Interim Report will be mailed to you upon request and is also available on  
our website at www.atriagroup.com.

Liitetiedostot