INTERIM REPORT OF ATRIA PLC 1 JANUARY– 31 MARCH 2015
Atria Group’s EBIT grew from the previous year
- Consolidated net sales fell by 3.8% to EUR 314.5 million (EUR 327.0 million). At comparable exchange rates, the decline was 0.7%.
- Consolidated EBIT was EUR 0.7 million (EUR -2.5 million), 0.2% (-0.8%) of net sales.
- Atria initiated an investment of EUR 36 million in the modernisation of a pig cutting plant in Nurmo, Finland.
- The Swedish Competition Authority approved the sale of the Falbygdens cheese business to Arla. The sale realized 1 April 2015 according to the contract.
|Profit before taxes||-1.6||-5.7||34.0|
|Earnings per share, EUR||-0.07||-0.19||0.93|
Net sales by business area
|EBIT by business area|
|*Non-recurring items are included in the reported figures|
Atria Group’s net sales for January–March amounted to EUR 314.5 million (EUR 327.0 million). Net sales fell by EUR 12.5 million year-on-year. This decline was mostly attributable to the weakening of the rouble from the comparative period. EBIT was EUR 0.7 million (EUR -2.5 million). EBIT for the comparative period included EUR 0.8 million non-recurring costs.
Atria Finland made a decision to invest approximately EUR 36 million in expanding and modernising its pig cutting plant in Nurmo, Finland. New production facilities will be built next to the old plant, and the existing production facilities will be renovated and automated using the latest production technology. The new production facilities will measure around 4,500 square metres.
The investment will substantially raise the pig cutting plant’s productivity and profitability: it is expected to generate annual cost savings of some EUR 8 million in the cutting plant’s operations as a result of automation and the reorganisation of production. The use of new technology will also improve the conditions for quality and product safety in production.
Investments during the period under review totalled EUR 9.5 million (EUR 37.5 million). The Group’s free cash flow for the period (operating cash flow - cash flow from investments) was EUR -9.6 million (EUR -23.5 million) and net liabilities were EUR 263.1 million (31 December 2014: EUR 250.7 million).
The Swedish Competition Authority approved on 11 March 2015 the sale of Atria Scandinavia’s Falbygdens cheese business to Arla. The sale price was approximately EUR 34 million. According to the contract the divested operations were consolidated into Arla Foods AB after the period under review, from 1 April 2015. The transaction will reduce Atria’s annual net sales by around EUR 52 million and EBIT by some EUR 3 million.
Atria Finland’s net sales for January–March totalled EUR 212.2 million (EUR 216.9 million), down by EUR 4.7 million year-on-year. This decline was due to lower consumer demand and the sluggishness of the overall market. EBIT amounted to EUR 1.9 million (EUR 0.2 million). This increase was attributable to improved cost-efficiency. EBIT for the comparative period included EUR 0.8 million non-recurring costs.
Atria Scandinavia’s net sales for January–March amounted to EUR 85.2 million (EUR 88.4 million). At comparable exchange rates, net sales grew by 1.1% year-on-year. EBIT for January–March totalled EUR 1.9 million (EUR 0.9 million). This increase was due to higher sales, stable prices and improved production efficiency.
Atria Russia’s net sales for January–March amounted to EUR 15.8 million (EUR 21.3 million). At comparable exchange rates, net sales grew by 5.6% year-on-year. In the local currency, the growth in net sales was due to price increases. However, the increases were not sufficient to fully offset higher raw material costs. EBIT was EUR -2.3 million (EUR -2.2 million). In the period under review, the greatest challenge for business was the general economic uncertainty in the market.
Atria Baltic’s net sales for January–March totalled EUR 7.6 million (EUR 7.4 million). EBIT was EUR -0.1 million (EUR -0.2 million). Atria strengthened its market share in meat products in the retail sector. Oversupply in the European meat market has led to record low meat prices. This reduced the profitability of Atria’s primary production and exports in Estonia.
|Equity ratio, %||44.3||40.6||44.0|
|Net gearing, %||64.0||81.3||61.8|
|Gross investments in fixed assets||9.5||37.5||62.7|
|Gross investments, % of net sales||3.0||11.5||4.4|
Outlook for the future
In 2014, consolidated EBIT without non-recurring items was EUR 39.6 million. In 2015, EBIT is projected to be at the same level and net sales are expected to decrease.
Board of Directors’ proposal for profit distribution
The Board of Directors proposes that a dividend of EUR 0.40 be paid for each share for the financial year 2014.
Atria Plc complies with the disclosure procedure in accordance with standard 5.2b of the Financial Supervisory Authority and publishes its interim report for 1 January to 31 December 2015 as an attachment to this stock exchange release. The full release is available on the company's website at www.atriagroup.com.
For more information, please contact: Juha Gröhn, CEO, Atria Plc, tel. +358 400 684224.
Invitation to press conference
A press conference will be held in Finnish today, 28 April 2015, at 10:00 am at Finlandia Hall, in the Terassi room. Entrance is through door M4 or K4. The presentation material will be available on the company's website (www.atriagroup.com/en/investors/FinancialInformation/quarterlyreports) after the distribution of the interim report and as an attachment to this company announcement.
Nasdaq OMX Helsinki Ltd